Ferro-vanadium prices rose further at the end of last week on a spate of consumer enquiries, but some market participants are worry about that the level of end-user demand is sufficient to sustain these prices.

Basis 70-80% FeV climbed to $26-29 per kg from $24-28 per kg previously, with bids already reported as high as $30 per kg due to a lack of available material.

“Bids are at $30 per kg for 20-tonne lots,” one trader said. “There’s a lack of material and replacement is almost impossible. It will definitely keep going up.”

A producer sold some small parcels at the top of the new range, while a trader sold five tonnes at $27 per kg.

Ferro-vanadium has now risen by $6 per kg since the start of the year. Suppliers hope that consumer business can replace the intertrade deals that have dominated the market for

the majority of those two weeks, as has happened to some extent in the molybdenum market.

An increase in end-user enquiries late last week boosted confidence among sellers, as many had become concerned at the lack of consumer interest even while prices have been

rising.

“The market is really strong and there are a large number of enquiries,” a producer said, pointing to an enquiry for 40 tonnes of ferro-vanadium from a consumer in western

Europe.

“At the beginning of the year it was due to the trade, but now we’re seeing some enquiries from consumers,” he said.

But others are not so confident and traders have been seeing far less consumer interest than producers have.

“We didn’t see so much demand and we’ve had no end-user enquiries,” a second trader said.

Such has been the speed of the rise in vanadium prices that if consumer demand does not increase, prices are likely to fall back despite the tight market.

“I’m not convinced that there is enough demand to hold prices here,” a third trader said. “There’s a little bit of consumer demand, about the same as in December. But

business is still mostly being done by the trade.”

The third trader added that for the market to settle at a level justified by the real demand in the market, a large consumer tender is needed to provide direction.

“The market needs a high-profile European end-user enquiry,” he said. “If Salzgitter or Bohler came in, that would set the market.”