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.