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.