EU Ferro-Vanadium Imports Fell in 2025 as Demand Stayed Weak

Ferro-Vanadium

EU ferro-vanadium imports declined in 2025 as weak downstream demand and an oversupplied market reduced buying across Europe’s largest consuming hubs. EU countries imported 16,694 tonnes of ferro-vanadium during the year, down 6.4% from 2024.

The decline was led by the Netherlands, Germany, and Italy, which together accounted for 66.2% of total EU ferro-vanadium imports. Lower buying in these markets shows that European steel and alloy demand remained under pressure through 2025.

EU ferro-vanadium imports are closely tied to steelmaking activity because ferro-vanadium is used to improve strength, toughness, and performance in steels. Weak demand therefore signals continued softness in construction, manufacturing, and specialty steel production.

Netherlands, Germany and Italy Drove the Import Decline

The Netherlands remained the largest EU ferro-vanadium importer, but its intake fell 15.7% on the year to 4,633 tonnes. Germany’s imports declined 14.6% to 3,162 tonnes, while Italy’s imports dropped 8.1% to 3,250 tonnes.

These reductions matter because all three markets serve important roles in European metals distribution, steelmaking, and alloy procurement. When buying slows in these countries, it usually reflects broader caution across the regional value chain.

The import decline also confirms that oversupply limited restocking appetite. Buyers had little urgency to secure additional ferro-vanadium when downstream orders remained weak and market availability stayed comfortable.

Export Flows Shifted as Austria Lost Share

Austria remained the top exporter of ferro-vanadium to other EU countries in 2025, but shipments fell sharply. Austrian exports declined 29.6% on the year to 3,414 tonnes.

The Czech Republic became the second-largest exporter into Europe, with deliveries rising 21.4% to 2,275 tonnes. This pushed it ahead of South Africa, South Korea, and the Netherlands compared with the previous year.

The shift suggests that European ferro-vanadium supply patterns are becoming more fluid. However, the broader market signal remains bearish: EU ferro-vanadium imports fell because demand was not strong enough to absorb available supply.

The Metalnomist Commentary

The ferro-vanadium market shows how alloy demand remains vulnerable when steel consumption weakens. Europe’s lower imports point to a market still waiting for a stronger industrial recovery, especially in construction, machinery, and specialty steel.

China Vanadium Prices Weaken as Supply Rises and Steel Demand Slows

China Vanadium

China vanadium prices are under renewed pressure as higher spot availability, weak alloy demand and softer steel mill tenders weigh on the market. Domestic 98% grade vanadium pentoxide flake prices fell to 82,000-87,000 yuan/t on 8 May, their lowest level since 20 April.

China vanadium prices began to soften in late April after alloy producers slowed purchases and cut procurement bids. Most ferro-vanadium producers lowered feedstock buying levels after steel mill tender prices came in below market expectations.

China vanadium prices are also being pressured by rising output. Domestic vanadium production reached 56,040t of vanadium pentoxide in January-April, up 7.6% from a year earlier.

The market is now facing a classic supply-demand imbalance. Higher vanadium flake and slag production has increased spot availability, while steel-sector demand remains weak and export outlets are slowing.

Higher Flake and Slag Output Increases Spot Availability

China’s vanadium supply increased because stronger earlier prices encouraged producers to lift output from vanadium-bearing steel slag. Vanadium-containing steel slag production rose to 49,320t in January-April, up 8% from a year earlier.

Higher flake prices in the first four months improved margins for slag-based production. Domestic 98% grade vanadium pentoxide flake averaged 80,812 yuan/t ex-works during January-April, up 9.5% from a year earlier.

New capacity has also added pressure. Qinhuangdao Baigong Steel started a 10,000 t/yr vanadium pentoxide flake production line in Hebei province in February.

This additional output arrived just as downstream buying slowed. Major flake suppliers had not finalised some contracts by 8 May, while some alloy producers were buying only limited volumes at lower cash prices.

The increase in spot availability has changed buyer behaviour. Alloy producers are no longer rushing to secure feedstock because they expect further price weakness.

That expectation can reinforce the decline. When buyers delay purchases, sellers face more pressure to reduce offers, especially when inventories rise and steel demand remains poor.

Weak Steel Tenders and Export Slowdown Limit Demand

Ferro-vanadium demand remains the main drag on the vanadium market. Domestic 50% grade ferro-vanadium prices fell to 93,000-94,000 yuan/t ex-works on 8 May, their lowest level since 1 April.

Steel mill tender prices also declined. Prices paid by steelmakers fell to 94,000-95,000 yuan/t delivered, including VAT and payable by acceptance bill, down from late-April levels.

Steelmakers are lowering bids because steel margins remain weak. This is especially important for vanadium because much of its demand comes from alloying in rebar and other steel products.

China’s rebar production fell to 29.54mn t in January-April, down 8.6% from a year earlier, as the real estate slowdown continued to reduce construction-related steel demand.

Steelmakers purchased an estimated 6,865t of vanadium alloys in April, down 17% from a year earlier. This confirms that weaker steel consumption is now feeding directly into lower vanadium alloy demand.

Export conditions are also turning less supportive. China’s vanadium flake exports are expected to decline in the coming months as international production increases.

Canadian producer Largo more than doubled vanadium pentoxide output in the first quarter to 2,616t, supported by higher-grade ore and steadier processing at its Brazilian mine. Russian producer Evraz also started a new 15,000 t/yr vanadium pentoxide flake plant in March and is expected to ramp up by June.

These additions reduce the need for some overseas buyers to rely on Chinese flake. That weakens a potential outlet for excess Chinese supply.

The near-term outlook remains soft. Unless steel mill tenders recover or vanadium exports improve, rising spot availability will likely keep pressure on vanadium pentoxide flake and ferro-vanadium prices.

The Metalnomist Commentary

China’s vanadium market is being hit by the wrong combination: rising supply, weak rebar output and cautious alloy buying. The longer-term battery storage story remains attractive, but near-term pricing still depends heavily on steel demand and feedstock discipline.

India's Vanadium Pentoxide Imports from China Surge Amid Policy Shift

Vanadium

Removal of Indian Import Duty Boosts V2O5 Flake Trade, Reshaping Global Vanadium Supply Chain

India's demand for vanadium pentoxide flake (V2O5) from China is expected to keep growing in 2025, fueled by a strategic shift in trade policy and booming domestic steel production. The lifting of India’s 5% import duty on V2O5 in July 2024 significantly boosted Chinese exports, with volumes hitting 5,659 tonnes that year — a 2% increase from 2023, largely attributed to India’s buying spree.

December’s V2O5 exports from China to India spiked fourfold year-over-year to 462 tonnes, showcasing India's aggressive restocking. Although this was down 30% from November's peak of 663 tonnes, the trend clearly favors continued growth into 2025.

India Shifts Focus from Ferro-Vanadium to Flake Feedstock

India’s Bureau of Indian Standards (BIS) certification requirement for foreign ferro-vanadium suppliers, introduced in September 2024, has added barriers to ferro-alloy imports. Many Chinese producers resist applying for BIS due to the intrusive approval process, which includes third-party inspections and disclosure of proprietary production data. As a result, Indian buyers have increasingly turned to V2O5 flake as a substitute for direct alloy imports.

India’s strategic move aims to strengthen its domestic ferro-vanadium industry by incentivizing the use of vanadium pentoxide feedstock. While ferro-vanadium imports still incur a 5% duty, V2O5 imports are now duty-free, giving Indian alloy producers a significant cost advantage. This policy shift aligns with India’s growing steel output — up 6.3% year-on-year to 149.6 million tonnes in 2024 — which naturally lifts vanadium demand.

Global Trade Dynamics Rebalance as India Rises

China, the world’s largest vanadium producer with 70% of global output, saw its V2O5 production rise 3.3% to 165,000 tonnes in 2024. As traditional buyers like South Korea, Japan, and Germany scaled back imports due to sluggish steel demand, India stepped in as a key growth market. Indian imports of Chinese V2O5 soared to 470 tonnes in 2024 from zero the previous year — a monumental shift.

Even as ferro-vanadium exports from China to India jumped to 200 tonnes in 2024 — 33 times more than in 2023 — the rising preference for vanadium flake suggests a long-term structural pivot. With India’s BIS certification deadline looming in March 2025, foreign ferro-vanadium suppliers without certification will be locked out, reinforcing India’s reliance on Chinese V2O5 flake.

Looking ahead, India’s rising crude steel output and policy-driven demand for vanadium flake are poised to reshape vanadium trade flows. As China ramps up its production capacity, both nations may find themselves increasingly entwined in the evolving global vanadium market.

China Vanadium Consumption Set to Rise in 2026 as VRFB Demand Accelerates

Vanadium

China vanadium consumption is expected to rise in 2026 as vanadium redox flow batteries, steelmaking, lithium iron phosphate cathode materials and denitration catalysts increase demand. The strongest growth is likely to come from VRFB-based energy storage, where projects are entering a more concentrated construction and commissioning phase.

China vanadium consumption reached 125,900t of vanadium pentoxide equivalent in 2025, up 6.1% from 2024. The market is now shifting from a steel-dominated structure toward a more diversified demand base.

China vanadium consumption still depends heavily on steel, but the share of energy storage has expanded quickly. Steel accounted for 70.9% of total demand in 2025, down from 87.9% in 2021. Energy storage rose to 20% of total use from only 4% over the same period.

This change is strategically important for vanadium producers. Demand is no longer driven only by construction steel, rebar and alloy additions. It is increasingly tied to long-duration energy storage, grid stability, batteries, catalysts and higher-value industrial applications.

VRFB Storage and Steel Demand Drive the 2026 Consumption Outlook

Vanadium demand from VRFB energy storage is expected to increase sharply in the second half of 2026. China’s National Development and Reform Commission and National Energy Administration issued a notice on 30 January to improve the generation-side capacity price mechanism, supporting longer-duration storage.

This policy direction matters because VRFB technology is better suited to long-duration applications than many short-duration battery systems. VRFBs offer long cycle life, high safety, deep-discharge capability and easier electrolyte reuse.

China’s VRFB installations in 2026 are preliminarily estimated at 4-5GWh. This forecast reflects projects already under construction and the availability of high-purity vanadium for electrolyte production.

That installation level would require around 32,000-40,000t of V2O5 equivalent. This would represent an increase of 8,000-16,000t from the previous year, making VRFBs the largest source of incremental vanadium demand.

The growth builds on rapid progress in 2025. VRFB projects with completed electrolyte filling totalled about 3,037.5MWh last year, up 1,027.3MWh from 2024. China’s cumulative VRFB installed capacity reached about 6,064.5MWh by the end of 2025, with an average duration of 4.12 hours.

The market is now moving from pilot-stage expansion to larger system deployment. As more long-duration storage projects reach construction and commissioning, vanadium electrolyte demand could become more predictable.

Steel remains the largest end-use sector. Vanadium demand from China’s steel industry is expected at 92,000-95,000t in 2026, up 3,000-6,000t from 2025.

The increase is tied to stronger demand from machinery, energy, shipbuilding, automotive and rail sectors. These ferro-vanadium end-use segments are expected to grow by around 1.2% in 2026.

The steel demand signal was already visible in the first quarter. Steel-sector vanadium consumption reached around 22,600t, up 1,800t from a year earlier.

Rebar could also provide support. Output of higher-grade steel reinforcement bar is expected to rise as infrastructure investment accelerates. Production licence rules for construction rebar took effect on 1 April, while quality traceability requirements have expanded.

These rules should raise the share of vanadium-nitrogen micro-alloyed hot-rolled rebar. That would support demand for vanadium-nitrogen alloy, especially in higher-strength construction products.

The 2025 steel data show a more complicated picture. Vanadium consumption in the steel sector reached around 89,300t, up 1,700t from 2024. However, vanadium-nitrogen alloy consumption fell by 3.8% to 36,690t because rebar’s share of vanadium use declined.

China’s rebar output fell to 186.3mn t in 2025, down 4.5% from a year earlier. This reduced vanadium demand from traditional construction steel.

Ferro-vanadium performed better. FeV50-equivalent consumption rose by 10.4% to around 39,985t, supported by stronger downstream output in several industrial sectors.

Automotive production reached 34.778mn units in 2025, up 9.8%. Civil steel shipbuilding totalled 52.295mn deadweight tonnes, up 18%. Excavator output rose by 17% to 379,643 units.

Machine tool output also increased. Metal-cutting machine tool production rose by 9.7%, while metal-forming machine tool output increased by 7.2%. These sectors helped offset weakness in rebar.

Vanadium intensity also rose. China’s vanadium use per tonne of crude steel increased to 51g of vanadium metal equivalent in 2025 from 48g in 2024. Rebar intensity edged up to 152.5g, while other steel products rose to 26.6g.

LFP cathode materials will provide another smaller but fast-growing demand source. Vanadium consumption from LFP cathodes is estimated at 2,000-2,500t in 2026, assuming a typical 0.2% V2O5 addition rate.

That would be up by 1,000-1,500t, representing growth of 100-150%. The base remains small, but the rate of increase is significant.

Denitration catalysts should also support demand. Chemical-sector vanadium consumption is expected at around 7,000t in 2026, up about 500t, or 7.7%. Demand will be supported by catalyst replacement, new coal-based thermal power projects and higher sulphuric acid output.

In 2025, chemical-sector vanadium use was around 6,500t, up 200t from 2024. Titanium-alloy-related consumption fell by around 400t, tracking weaker Chinese titanium product exports.

Supply Growth Remains Limited by Feedstock and Cost Pressure

China’s vanadium supply remains highly concentrated, but output growth is not straightforward. The country accounted for 68.8% of global vanadium capacity in 2025 and 72.4% of global production.

China’s total vanadium capacity reached 277,600t in 2025. Actual output was 163,900t, down 900t from 2024.

The production base is dominated by vanadium slag. Output from vanadium slag reached 141,300t in 2025, broadly unchanged from the previous year.

Some producers reduced supply. Xinjiang Da’an and Yunnan Yukun did not produce, cutting combined output by about 8,000t. Other producers, including Chengsteel, Desheng and Dagang, raised output by around 15%, offsetting part of the loss.

Stone-coal-based vanadium output fell more sharply. Production declined to 7,600t in 2025, down 2,600t from 2024, as lower prices left all stone-coal producers loss-making.

This route remains highly price-sensitive. At current price levels, only one large-scale stone-coal producer is operating, with output of around 100-120 t/month of ammonium metavanadate on a V2O5-equivalent basis.

A Shaanxi-based producer with capacity of 300-350 t/month has been suspended since early 2026 because of safety issues. It is unlikely to restart in the first half.

Vanadium flake prices rose to 83,000-84,000 yuan/t in March, prompting some stone-coal producers to consider restarts. However, current prices still appear insufficient to drive a large supply response.

Even when prices approached 110,000 yuan/t in 2023, stone-coal-based output only reached about 11,000t. This suggests that 2026 output growth from stone coal will likely remain limited.

Secondary resources are becoming more important. Vanadium output from spent catalysts and other secondary sources rose to 15,100t in 2025, up 1,900t from 2024.

This included about 6,700t from alumina by-product recovery, up around 1,700t. Output from spent catalysts and petroleum residues stayed broadly stable despite lower vanadium prices.

The reason is co-product economics. Vanadium is often recovered alongside molybdenum and tungsten from secondary feedstocks. Higher molybdenum and tungsten prices supported operating rates and helped keep secondary recovery viable.

Secondary output is expected to remain broadly unchanged in 2026. Feedstock availability is relatively stable, but China’s restrictions on solid-waste imports since 2017 limit the potential for major raw material growth.

Vanadium slag-based supply may edge higher in 2026, but feedstock constraints create uncertainty. Qinhuangdao Baigong completed a 10,000 t/yr V2O5 line in early 2026 and is ramping toward normal operations. Its 2026 output guidance is around 5,000t.

However, tighter domestic feedstock availability could offset this addition. Vanadium-titanium magnetite supply in the Panzhihua area is particularly constrained, potentially cutting output by about 4,500-5,000t of V2O5 equivalent.

Producers in Sichuan and Yunnan may need to source vanadium-titanium magnetite from the Chengde area or increase imports to keep output in line with 2025. A northeastern steelmaking-based vanadium producer has also reduced vanadium-titanium magnetite imports since December 2025.

This creates a cautious supply outlook. China’s vanadium output may edge higher in 2026, but the increase depends on whether new slag-based capacity can offset feedstock tightness and further weakness in stone-coal production.

The market therefore faces a potential demand-led tightening risk. VRFB demand is rising quickly, steel demand is improving modestly and smaller sectors are growing. Supply growth, meanwhile, remains constrained by feedstock, cost pressure and limited secondary resource availability.

For vanadium producers, the key opportunity lies in high-purity electrolyte-grade material. VRFB demand requires reliable vanadium quality, stable supply and long-term availability. Producers that can supply battery-grade vanadium will be better positioned than those focused only on metallurgical demand.

For steel users, the issue is price exposure. If VRFB demand absorbs more vanadium units, ferro-vanadium and vanadium-nitrogen alloy buyers could face stronger competition from the energy storage sector.

For energy storage developers, the issue is raw material security. VRFB growth depends on enough high-purity vanadium to support electrolyte production. Supply constraints could affect project economics if demand accelerates faster than conversion capacity.

The Metalnomist Commentary

China’s vanadium market is entering a new phase where steel remains the base, but VRFBs set the growth direction. The strategic tension in 2026 will be whether constrained supply can keep pace with energy storage demand without pricing steel users out of the market.

China’s Ferro-Molybdenum and Ferro-Vanadium Prices Remain Steady Amid Firm Demand

Ferro-Molybdenum

The Chinese noble alloys market has maintained stability in early 2025, with ferro-molybdenum (FeMo) and ferro-vanadium (FeV) prices holding firm due to consistent demand from steelmakers and steady raw material costs. Despite market uncertainties, domestic and export prices have largely remained unchanged since the end of December.

Ferro-Molybdenum Market Trends

Domestic prices for 60% grade ferro-molybdenum were assessed at 230,000-233,000 yuan per tonne (Yn/t) ($31,510-$31,921/t) ex-works, translating to Yn383-388 per kilogram (kg) of contained molybdenum. Export prices remained steady at $53-53.50/kg free on board (FOB) China.

• Steelmaker demand remains firm, with tenders closing at approximately Yn230,000/t on a delivery basis. However, January's total tender volume is expected to fall short of 10,000t, compared to 14,000t purchased in December.

• 45% grade concentrate prices were Yn3,590-3,620 per metric tonne unit (mtu) ex-works, while 57% grade roasted concentrate was assessed at Yn3,690-3,720/mtu ex-works, both unchanged from December 31 levels.

• A Jiangxi-based mining company finalized 45% grade concentrate sales at Yn3,595/mtu over the past two days.

With steady steel production supporting ferro-molybdenum demand, prices are expected to remain stable in the short term.

Ferro-Vanadium Market Holds Firm Despite Global Price Softness

The ferro-vanadium (50% grade) market remained stable at Yn81,000-83,000/t ex-works, supported by ongoing procurement from steelmakers and stable pentoxide flake costs.

• January procurement tenders were issued ahead of the Lunar New Year holiday, with major private-sector steelmaker Nanjing Iron and Steel yet to set its tender price.

• Alloy producers maintained offers between Yn82,000-83,000/t, as pentoxide flake costs remained firm. A Tianjin-based trader purchased 10t of FeV at Yn81,000/t ex-works on December 31.

• Pentoxide flake prices remained at Yn73,000-74,000/t ex-works, with major suppliers Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong yet to announce January prices.

Despite stable domestic demand, export prices for 80% grade ferro-vanadium softened to $24.30-25/kg FOB China, down from $24.80-25.30/kg on December 31. This decline reflects weaker international demand and lower bids from overseas buyers.

Conclusion

With firm steel sector demand and stable feedstock costs, China’s ferro-molybdenum and ferro-vanadium markets are expected to remain steady in early 2025. While domestic demand holds firm, international ferro-vanadium prices face downward pressure, reflecting weaker global buying interest. The market's direction in the coming months will depend on steelmakers' procurement strategies and raw material cost fluctuations.

China's Longteng Special Reduces December Ferro-Vanadium Tender Price

Ferro-Vanadium

Jiangsu Changshu Longteng Special Steel, a major private-sector steelmaker in China, has lowered its ferro-vanadium tender price for December 2024 deliveries, citing challenging profit margins in the steel sector.

Ferro-Vanadium Tender Price Drops

On December 6, Longteng Special Steel finalized a purchase of 32 tonnes of 50% grade ferro-vanadium at 81,700 yuan/tonne (Yn163/kg or $22.45/kg), delivered and inclusive of VAT. This represents a significant drop of 4,850 yuan/tonne from the price set in its previous tender on November 8, which was 86,550 yuan/tonne ex-works. Shipments are scheduled for December 31.

Similarly, Zenith Steel, another prominent privately operated steelmaker, purchased 66 tonnes of ferro-vanadium on December 4 at 81,500 yuan/tonne, delivered with VAT, reflecting a 4,100 yuan/tonne reduction compared to its mid-November tender.

Market Stabilizes Amid Reluctant Producers

Despite these price reductions, the overall ferro-vanadium market remained stable as many alloy producers were hesitant to lower their offers further. Current prices are nearing production costs, limiting flexibility in pricing strategies. Market participants largely stayed on the sidelines due to sluggish demand from steel mills and trading houses.

As of December 6, prices for 50% grade ferro-vanadium were assessed at 81,000-83,000 yuan/tonne ex-works, unchanged from December 3. Meanwhile, pentoxide flake feedstock prices held steady at 71,000-76,000 yuan/tonne ex-works, reflecting muted procurement interest from alloy smelters and sporadic steel mill tenders.

Upcoming Pricing Announcements

Major feedstock suppliers, including Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong, are set to announce their selling prices for December deliveries next week. These updates are expected to provide further insight into market dynamics as steel mills and alloy producers navigate persistent cost pressures and limited demand.

India Noble Alloys Prices Remain Stable Amid Domestic Market Challenges

Alloys

Ferro-Molybdenum and Ferro-Vanadium Prices Hold Steady, But Market Sentiment Remains Weak

In India, prices for ferro-molybdenum and ferro-vanadium remained steady in early February 2025. However, the overall sentiment in the domestic ferro-molybdenum market is notably bearish, driven by a weaker Indian rupee. Meanwhile, the limited demand for stainless steel is restricting activity in the ferro-vanadium market.

Stable Prices for Ferro-Molybdenum Amid Weak Sentiment

The price of ferro-molybdenum in the domestic Indian market is holding steady at Rs2,530-2,550 per kilogram ($28.89-29.12 per kilogram) ex-works. Similarly, molybdenum oxide prices have remained unchanged at Rs2,420-2,450 per kilogram, according to recent assessments. Despite this price stability, market sentiment remains low, primarily due to the weak Indian rupee, which has made imported oxide more expensive.

A producer spoke with The Metalnomist and noted that there is no significant excitement in the molybdenum market. The lack of enthusiasm can be attributed to the fiscal year 2025-26 budget announcement and the delays in the shipbuilding industry’s setup, which has further dampened market expectations.

Ferro-Vanadium Prices Stable, But Stainless Steel Demand Remains Low

The price for ferro-vanadium in India stands at Rs1,090-1,100 per kilogram. This market also remains largely stable, although it has seen fewer transactions due to limited stainless steel demand. As a result, the market has become quieter, with little price movement.

However, analysts expect the market to gain more clarity following the Chinese Lunar New Year holiday. It is anticipated that the resumption of industrial activities in China could provide a clearer picture of the price trend and demand in the coming months.

China to Boost Vanadium Exports to India Following Policy Adjustments

China Vanadium

Chinese vanadium pentoxide flake exports to India are set to rise, spurred by India’s removal of a 5% customs duty on the material in late July, market participants report. This comes as India introduces new Bureau of Indian Standards (BIS) certification requirements, aimed at strengthening its domestic ferro-vanadium industry. The move aligns with India’s ongoing efforts to bolster its steel production, which reached 140.2mn tonnes in the 2023-24 fiscal year, a 12% increase from the previous year. The country is targeting a 300mn t/yr steel output by 2030-31, driven by a push for infrastructure development.

India has historically sourced vanadium pentoxide flake from countries such as Thailand, South Korea, and Russia. However, recent months have seen a marked increase in Chinese vanadium exports to India. From January to July this year, China exported 120 tonnes of vanadium pentoxide flake to India, compared to none the previous year.

India’s new BIS certification process, which must be renewed annually, requires both domestic and international ferro-vanadium producers to obtain a license before selling in India. Without this, suppliers will be unable to sell ferro-vanadium in the Indian market starting mid-March 2025.

A Sichuan-based supplier indicated readiness to sell to India, citing an oversupply in the domestic market and increasing inquiries from Indian buyers. China's total vanadium pentoxide flake production reached 85,315 tonnes from January to August, a 9.8% year-on-year increase, reflecting the country's capacity to meet rising global demand.

Pangang Resumes Vanadium Guide Prices Amid Market Rebound

Pangang Vanadium

China's largest vanadium producer, Pangang, resumed issuing its weekly vanadium guide prices on September 23, after a temporary suspension in mid-June caused by continuous drops in spot prices. The company's latest guide price for 50% grade ferro-vanadium stands at 85,000 yuan per ton (Yn170/kg or $26.21/kg for contained vanadium). For the 77% vanadium and 16% nitrogen alloy, the price is set at Yn115,000 per ton.

Pangang's previous price revision took place on June 11, when the guide price for 50% grade alloy was Yn99,000 per ton, and for the 77% vanadium and 16% nitrogen alloy, it was Yn135,000 per ton. Since launching weekly guide prices on August 1, 2016, the company has consistently adjusted prices on Mondays or Thursdays, depending on market conditions.

Market Reactions to China's Stimulus Policies Boost Alloy Prices

On September 27, alloy market prices began to rise following China's announcement of new economic stimulus policies earlier in the week. Many alloy smelters increased their offers due to reduced spot supplies and renewed demand from steel mills ahead of the October 1-7 National Day holiday. Prices for 50% grade ferro-vanadium climbed to Yn80,000-81,000 per ton, up from Yn78,000-80,000 per ton the previous day.

Pentoxide flake prices also saw an increase, reaching Yn70,500-71,000 per ton, as small and medium-sized suppliers began selling at higher prices after major Chinese suppliers, including Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong, sold out their September output.

Pangang's vanadium pentoxide equivalent production in 2023 reached 49,800 tons, marking a 6.2% increase from the previous year's output of 46,900 tons. The company’s production guidance for vanadium pentoxide equivalent this year is set at 44,100 tons. Additionally, Pangang boasts significant output capacity in titanium concentrate, titanium slag, and titanium dioxide production, further cementing its role as a key player in the global market.

China's Fengbao Special Steel Reduces Ferro-Vanadium Tender Price Amid Weakening Demand

In response to declining steel demand and narrowing profit margins, Chinese private-sector steelmaker Henan Fengbao Special Steel has lowered its ferro-vanadium tender price for August deliveries. On August 8, the company purchased 15 tons of 50% grade ferro-vanadium at a rate of 87,000 yuan per ton (equivalent to $24.27 per kilogram of vanadium content), marking a reduction of 1,000 yuan per ton from the price set in mid-July.

The downturn in ferro-vanadium prices has persisted since late July, driven by decreasing demand from steel mills. Many mills have begun maintenance and reduced output in anticipation of new national standards for steel reinforcement bars (rebar), leading to a decrease in spot inventories.

This price cut aligns with a broader trend observed among alloy producers, who have also lowered their offers in the wake of reduced purchases from both steelmakers and trading firms, compounded by falling costs of pentoxide flake feedstock.

Notably, state-owned Fushun Special Steel secured 100 tons of 50% grade alloy on August 8 at 86,650 yuan per ton, reflecting a significant drop of 11,350 yuan per ton compared to a previous tender in late May. Fushun typically opts for 80% grade alloy in its steel production.

Similarly, private-sector Nanjing Iron and Steel (Nisco) purchased 90 tons of the alloy on August 9 at 87,200 yuan per ton, down sharply by 28,300 yuan per ton from a late July tender. State-owned Jiangxi Xinyu Iron and Steel also lowered its purchase price on the same day, acquiring 32 tons at 87,000 yuan per ton, a reduction of 5,200 yuan per ton from its early July tender.

Major suppliers, including Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong, have yet to finalize their selling prices for August deliveries to regular consumers.

Bushveld Mineral

South African Output Cuts to Boost China's Vanadium-Nitrogen Exports

Rising Exports Driven by Lower South African Production and Strong US Demand

China’s vanadium-nitrogen exports are expected to see significant growth in 2025, primarily due to output cuts from a major South African producer, increasing demand from the US, and strong export interest from Chinese producers. Market participants anticipate a boost in global vanadium-nitrogen trade, benefiting China’s export numbers.

Impact of South African Output Cuts on Global Vanadium-Nitrogen Supply

South African vanadium-nitrogen production has been notably impacted by ongoing equipment maintenance at Bushveld Minerals Vametco plant. From mid-December to March 2025, the plant will operate at reduced capacity due to a cash shortage. In 2024, Bushveld’s production fell by 19%, amounting to 1,387 tonnes. This reduction in South African output is expected to continue in 2025, with the producer operating at low run rates due to negative profit margins. Consequently, China is positioned to capitalize on these cuts by increasing its exports.

Global vanadium-nitrogen alloy production is heavily concentrated in China and South Africa, with other countries lacking the necessary technology due to intellectual property restrictions. While European and US steel mills often prefer using ferro-vanadium (80% grade) over vanadium-nitrogen, China’s export increase in vanadium-nitrogen reflects changing dynamics in the alloy market.

Surge in China’s Vanadium-Nitrogen Exports and US Market Demand

China’s vanadium-nitrogen exports more than doubled in 2024, reaching 2,523 tonnes, up from 945 tonnes in 2023. This growth can be attributed to South Africa’s lower output and China’s expanded export activities. Notably, in December 2024, China’s vanadium-nitrogen exports surged five-fold to 377 tonnes, compared to just 67 tonnes a year earlier.

The US was the largest buyer of Chinese vanadium-nitrogen in 2024, importing 892 tonnes, more than double the 335 tonnes purchased in 2023. Canada also saw a dramatic increase in imports, with 323 tonnes imported, a more than five-fold rise from 60 tonnes in 2023. India’s demand also increased by 69%, reaching 317 tonnes in 2024. The US demand for vanadium-nitrogen is expected to continue to rise, as the US government, under President Trump, has pledged to boost domestic construction activities, which will likely increase the demand for steel alloys.

Export Prices and Market Dynamics

Chinese export prices for vanadium-nitrogen are currently in the range of $20.30 to $21 per kilogram, lower than European prices of $23.80 to $24.20 per kilogram. Chinese smelters are more inclined to sell to overseas markets to address domestic oversupply issues. In 2024, China produced 41,500 tonnes of vanadium-nitrogen, surpassing domestic steel mills' consumption of 34,800 tonnes. However, some alloy smelters reduced production from 2023 levels due to negative profit margins and weaker steel demand.

Treibacher Affirms Compliance with US Sanctions on Russian Vanadium, Ensures Stable Supply of FeV and V205

Treibacher

Austrian metals producer Treibacher announced today that it had proactively ended all dealings with suppliers connected to Russian-origin vanadium prior to the latest US sanctions taking effect last week. The company confirmed its compliance with these sanctions, which aim to restrict Russian vanadium supply chains and particularly affect major steelmaker Evraz Group’s operations, including its Vanadi Tula facility producing vanadium pentoxide (V205).

The US government’s August sanctions have intensified concerns among vanadium buyers, especially for products like ferro-vanadium and vanadium-aluminium alloys, essential in aerospace titanium grades. Treibacher has faced questions from buyers uncertain about the “clean” origin of its materials. In response, Treibacher issued a public statement to reassure clients, affirming that it strictly adheres to the sanctions.

"Treibacher continues to utilise its own substantial feedstock and its extensive global supplier network to secure the supply of vanadium oxide and ferro-vanadium to its customers," the company stated, highlighting its global resource network and robust supply chain.

Since the announcement of these sanctions, some market participants have reportedly raised their offer prices to leverage the uncertainty surrounding Russian vanadium supplies.

U.S. Expands Sanctions on Russia, Targeting Vanadium Supply Chain

In its continued efforts to limit Russia's revenue from the metals and mining sector, the U.S. government has introduced new sanctions specifically targeting Russia's vanadium supply chain. This latest round of sanctions, announced by the U.S. Office of Foreign Assets Control (OFAC) on Friday, impacts nearly 400 entities across multiple industries, with a particular focus on the operations connected to global steelmaker Evraz Group.

Key Facilities Targeted

The sanctions notably affect several of Evraz's critical vanadium production facilities, including the Kachkanarski Gorno Obogatitelny Kombinat (KGOK), Nizhnetagilski Metallurgicheski Kombinat (NTMK), and Vanadi Tula. These sites are essential to Russia's vanadium production, which plays a crucial role in the manufacture of high-strength steel and various other industrial applications.

Evraz's operations involve mining vanadium-bearing iron ore at KGOK and producing vanadium-rich slag as a by-product at NTMK. The Vanadi Tula facility processes this slag into vanadium pentoxide (V2O5), a key intermediary for producing high-grade ferro-vanadium and vanadium metal, both critical in industrial and aerospace applications.

Uncertain Impact on U.S. Supplies

While these sanctions are designed to disrupt Russia's vanadium supply chain, it remains uncertain how much they will affect domestic U.S. supplies. The U.S. does not directly import vanadium from Russia, and the "significant transformation" rule enforced by U.S. Customs and Border Protection allows foreign producers using Russian materials to export alloys to the U.S., provided these materials undergo substantial processing.

Concerns Over Sanctions Evasion

The OFAC statement also addressed potential concerns about sanctions evasion by Russian entities. The U.S. Treasury Department emphasized its readiness to counter "new evasion channels," which could lead to increased scrutiny over the origin of vanadium products. This is particularly critical for sectors like aerospace, where the integrity of vanadium-aluminum alloys is essential.

Beneath the Growth: Ferro-Titanium(Fe-Ti) Market Enters Cooling Phase in 2025

Ferro-Titanium

Once a core beneficiary of aerospace and specialty steel demand, ferro-titanium now faces dual pressure from weakening demand and excess supply.

At the Foundation of Steel, Cracks Begin to Show

As of September 2025, leading market analysts still forecast a 4–5% annual growth rate for the ferro-titanium market, citing robust demand in aerospace, high-performance steels, and defense-grade alloys. But on the ground, reality paints a more sobering picture.

The global steel industry is struggling. A perfect storm of China’s low-cost exports, persistent weakness in downstream sectors, and U.S. tariff uncertainties has significantly dented confidence. Particularly hard hit are the automotive, shipbuilding, and plant engineering sectors, leading to a sharp decline in ferro-titanium consumption.

The result: a continued slide in spot prices, leaving suppliers grappling with margin pressure and inventory overhang.

Dual Shock: Demand Contraction Meets Supply Glut

Ferro-titanium is a specialty ferroalloy additive used in steelmaking to remove oxygen and nitrogen impurities, refine grain structure, and enhance both strength and corrosion resistance. It is indispensable in the production of titanium alloys for aerospace, stainless steels, and corrosion-resistant superalloys.

However, softening demand is now converging with a surge in cheap ilmenite and rutile feedstock imports, the ramp-up of new smelting capacity, and rising inventories, triggering a classic oversupply scenario. Some traders have resorted to panic selling, driving spot prices below long-term contract levels.

Not All Ferroalloys Are Created Equal

This downturn is not symptomatic of the entire ferroalloy market. While ferro-molybdenum (FeMo) prices are also under pressure due to steel sector weakness, the ferro-vanadium (FeV) market remains relatively buoyant—buoyed by growing demand for high-strength steel and new applications in energy storage technologies (e.g., vanadium redox flow batteries).

This divergence underscores a key truth:

Ferroalloy markets live or die by the uniqueness of their end-use demand.

Products that rely solely on steel cycles are inherently more volatile. In contrast, those with diverse, high-value downstream applications offer resilience—and in some cases, opportunity.

Long-Term Vision Intact, But Short-Term Survival Comes First

Industry experts agree:

"A meaningful rebound in ferro-titanium prices is unlikely until inventories normalize and downstream sectors recover."

Yet the long-term fundamentals remain intact. Demand from aerospace, defense-related high-performance steels, urban air mobility (UAM), and electric vehicles continues to build. Today’s correction may in fact be a strategic inflection point.

For producers with technological capabilities and diversified market access, this downturn could be a launchpad for future leadership. Moreover, as environmental regulations tighten, ferro-titanium producers with recycling-based production systems may gain a structural edge. In the long run, quality will matter more than quantity.

After all, ferro-titanium is essential for manufacturing materials that must not fail—only the strongest will do.

The Metalnomist Commentary

“This is not chaos. It is purification. Only the technologically armed will dominate the next cycle.”

The ferro-titanium market is undergoing a painful but necessary correction. But there is method in the madness. Suppliers rooted in high-value end markets, with a reputation for premium quality and the ability to serve global niches, will emerge as the next leaders.

This is a time for endurance. And in metals, quality is always the final destination.

Domestic Imports of Noble Alloys Fell in 2Q

Shipments of noble alloys to the United States declined in the second quarter, reflecting weaker demand from domestic steel producers and a narrower U.S. premium compared to the previous year.

- According to U.S. Commerce Department data released this week, total imports of noble alloys, including ferro-molybdenum, ferro-niobium, ferro-titanium, ferro-vanadium, and ferro-tungsten, fell by 14% to 6,352 metric tons.

- Shipments of ferro-molybdenum from Chile, the primary global supplier, dropped by 19% to 1,887 tons, while imports of South Korea-sourced alloys plunged by 34% to 683 tons.

- Ferro-niobium imports from Canada decreased by 11% to 1,009 tons but were largely offset by a 13% increase in shipments from Brazil, totaling 1,194 tons.

- Consolidated ferro-titanium imports from Eastern Europe—comprising Estonia, Latvia, and Ukraine—plummeted by 71% to 123 tons, while U.K. shipments fell by 36% to 267 tons.

- U.S. imports of ferro-vanadium from Austria sank by 61% to 133 tons, though Canadian imports rose by 40% to 402 tons.

- South Korea shipped only 1 ton of ferro-tungsten to the U.S. from April to June, with no imports from regular suppliers Vietnam and Mexico.

China's Vanadium Producers Evaluate Implications of New Rebar Standard

Chinese vanadium market participants have articulated a range of perspectives concerning the potential implications of a newly-approved mandatory standard for steel reinforcement bar (rebar), a principal downstream product. On June 25, China's State Administration for Market Regulation and Standardization Administration sanctioned the mandatory standard GB 1499.2 for steel rebar, slated to become effective on September 25. This standard was initially promulgated in 2018 as a recommended guideline.

The revised regulation stipulates that producers of rebar with vanadium content below the mandated threshold must augment their vanadium usage to comply with the standard. A 2023 survey by China's Central Iron and Steel Research Institute (CISRI) indicates that the production of non-compliant steel rebar accounts for approximately 23% of the total output.

This standard also includes the higher grade HRB600 rebar, which is anticipated to necessitate 4-5 times the vanadium content compared to HRB400, notwithstanding China's predominant production of HRB400E.

A vanadium alloy producer based in Chengde has minimized the potential for substantial demand growth following the implementation of the new standard, citing the increased adoption of alternative materials by numerous steel mills, such as high phosphate ferro-niobium, vanadium-containing pig iron, and ferro-titanium.

An executive from a leading producer in Sichuan province foresees that enhancements in the steel industry will eventually elevate vanadium demand, albeit not significantly. The rationale is that incorporating more vanadium into steel enhances its strength, thereby reducing the overall quantity of steel required in construction and, consequently, the consumption of steel rebar. Industry estimates suggest that the average vanadium consumption per tonne is 0.3 kg for HRB400 and 0.6 kg for HRB500.

In contrast, a vanadium alloy smelter in Shaanxi is optimistic about the new standard driving short-term demand growth. The smelter anticipates that prices will escalate in July as some steel mills may increase their purchases in response to the new standard. This smelter had suspended production in mid-June due to narrowing profit margins.

A source from a Chengdu-based alloy producer predicts that the vanadium market will experience a downturn during July and August due to diminished demand from the steel industry. However, the demand for vanadium is expected to recover in September with the enforcement of the new standard.

Steel mills reduced their production in mid-June due to depressed prices resulting from sluggish purchasing activity and a pessimistic demand outlook for the summer, as high temperatures and increased rainfall have impeded outdoor activities.

Meanwhile, most other market participants are adopting a wait-and-see approach as they assess the ramifications of the new rebar standard.

Largo Lowers Ilmenite Production Forecast Due to Rescheduled Maintenance

Largo, a leading vanadium producer, has revised its ilmenite production and sales forecasts downward for the remainder of the year, following a decision to advance its annual kiln maintenance. Originally scheduled for the first quarter of 2025, the maintenance has been moved up to November to avoid potential disruptions from seasonal rains at the company’s Maracas Menchen mine in Brazil.

The Canada-based company now anticipates producing between 10,000 and 15,000 metric tonnes of ilmenite in the third quarter and 12,000 to 17,000 tonnes in the fourth quarter, significantly down from earlier projections of 21,000 to 24,000 tonnes and 24,000 to 28,000 tonnes, respectively. Sales expectations have also been reduced, with third-quarter volumes now forecasted between 5,000 and 15,000 tonnes, compared to a previous estimate of 19,500 to 21,000 tonnes.

Despite these adjustments, Largo confirmed that its vanadium pentoxide (V2O5) output and sales will remain unaffected. The company has been focusing on ilmenite as an additional revenue stream amidst declining global prices for V2O5 and ferro-vanadium. In the most recent quarter, ilmenite contributed $2.3 million, or 8.2 percent, to Largo's earnings, while vanadium products continue to be the main revenue driver.

Largo’s financial performance has been under pressure, with quarterly losses widening to $14.5 million from $6 million a year earlier, as revenues fell by 46 percent to $28 million. The company attributed the downturn to weak demand for ferro-vanadium, particularly due to challenging conditions in the European and Chinese steel markets.

Bushveld Minerals Reports Lower Vanadium Output in Q3 Amid Operational Adjustments

Bushveld Minerals

South Africa’s Bushveld Minerals reported a year-on-year decrease in vanadium production for the third quarter of 2024, as the company continues a controlled operational slowdown at its Vametco complex due to liquidity challenges. Despite the reduced output, Bushveld reaffirmed its focus on Vametco as its core vanadium-producing asset following the sale of its Vanchem processing plant.

Q3 Production Highlights

• Vanadium production at Vametco: 855 tonnes (t), down 15% year-on-year.
• Aggregate output for January-September: 2,546t, a decrease of 8.5% compared to the same period last year.
• Nitro-vanadium output at Vametco: 485t in Q3, an 11% decline from the previous year, and 1,387t for January-September, down by 19%.

The slowdown at Vametco was attributed to ongoing cash flow challenges, prompting Bushveld to revise its 2024 production guidance downward in alignment with its liquidity management strategy.

Vanchem Processing Plant Sale and Q3 Output

Earlier this month, Bushveld completed the sale of its Vanchem vanadium processing plant to investment fund Southern Point Resources, consolidating its focus on Vametco. Vanchem’s Q3 output totaled 370t, down 19% year-on-year due to mill issues following maintenance in May. Vanchem’s Q3 production breakdown included:

• Ferro-vanadium: 65t
• Vanadium pentoxide flake: 236t
• Other vanadium chemicals: 69t

Bushveld Minerals’ strategic divestment of Vanchem and reduced production guidance underscore its efforts to stabilize operations and focus on its primary asset amid global market fluctuations.

Ferro-Alloy Resources to Supply V2O5 from Kazakh Project to LL-Resources

Ferro-Alloy Resources

Ferro-Alloy Resources (FAR), a leading vanadium producer, has signed a non-binding offtake term sheet with LL-Resources for the sale of the entire vanadium pentoxide (V2O5) output from Phase 1 of its Balasausqandiq project in southern Kazakhstan. This agreement marks a significant milestone for FAR as it progresses toward becoming a major player in the global vanadium market.

The initial agreement spans six years from the start of production, with an option for extension. This partnership ensures a steady demand for V2O5, a critical material used in steel alloys, aerospace applications, and vanadium redox flow batteries (VRFBs), which are essential for renewable energy storage.

Overview of the Balasausqandiq Vanadium Project

The Balasausqandiq project is a two-phase development targeting an annual output of 22,400 tonnes of V2O5.

• Phase 1: Will process 1.65 million tonnes per year (mn t/yr) of ore.

• Phase 2: Aims to scale up processing to 5 mn t/yr of ore, significantly boosting production capacity.

As of May 2023, the project boasts an indicated mineral resource of 32.9 mn tonnes at an average grade of 0.62% V2O5, equating to 203,364 tonnes of contained V2O5. The ongoing feasibility study for Phase 1 is expected to conclude by Q2 2025, offering greater clarity on production timelines and potential.

Strategic Importance of the Offtake Agreement

The collaboration with LL-Resources provides FAR with a reliable trading partner and reinforces its position in the growing vanadium market. Vanadium pentoxide, particularly in its standard form, is crucial for strengthening steel and as a key component in energy storage systems like VRFBs. The agreement aligns with increasing global demand for critical minerals driven by renewable energy adoption and infrastructure development.

Kazakhstan: A Growing Hub for Vanadium Production

Kazakhstan’s rich mineral resources and strategic location make it a rising hub for vanadium production. The Balasausqandiq project adds to the country’s portfolio of critical materials and underscores the potential for Kazakhstan to play a key role in the global supply chain for critical metals.

Finland grants Neometals €48.7mn for vanadium plant in Pori, Finland

Neometals

Finland grants Neometals €48.7mn for vanadium plant support for its VRP1 project in Pori. The grant boosts confidence, but it comes with strict financing conditions. Meanwhile, Europe is pushing harder for local critical minerals capacity.

Grant conditions tie funding to €400mn project financing

The grant depends on Neometals securing about €400mn in total project financing. The company targets a 40% equity share and 60% debt share. As a result, lenders and partners will shape the final project economics.

Neometals previously considered scrapping VRP1 in October 2023 to protect cash. The company faced weak vanadium pentoxide and ferro-vanadium prices in Europe. However, a binding five-year offtake with Glencore provided guaranteed cash flow.

The project later secured €1mn in two tranches from EIT RawMaterials support. Meanwhile, the EU classified vanadium as a critical raw material under the 2024 act. Therefore, Finland grants Neometals €48.7mn for vanadium plant funding as a policy-aligned signal.

VRP1 output targets 9,000 t/yr amid tight global supply

VRP1 targets about 9,000 tonnes per year of output once financing closes. Construction could take up to three years after full funding. Therefore, the schedule now depends on financial close timing.

Global vanadium production remains highly concentrated in two countries. Russia and China produced a combined 91% of last year’s 100,000 tonnes. Meanwhile, European buyers want supply security for steel alloys and grid storage. As a result, Finland grants Neometals €48.7mn for vanadium plant support that fits a broader reshoring trend.

The Metalnomist Commentary

Conditional grants reduce early risk, but they do not fix weak price cycles. Meanwhile, recycled feedstock can improve cost resilience versus primary supply. Therefore, VRP1 will hinge on financing discipline and consistent product qualification.