Next target for ferrovanadium: USD25?

BEIJING (Asian Metal) 5 Aug 05 -  In the past two weeks, the price slipping of ferrovanadium in the European market speeded up at a rate of around USD10 per week, from over USD60/kg two weeks ago to around USD50 last week, with current prevailing prices a little over USD40/kg.

Ferrovanadium price reached a peak of close to USD130/kg mid of this April.

"It (the dropping rate) is absolutely out of our expectation. We'd thought to place an order this Monday at a price of around USD41/kg, but then heard prices of around USD33/kg concluded from some source," a UK trader told Asian Metal.Asian Metal Copyright "However, by the moment, we have not taken any action, but waiting and watching.Asian Metal Copyright The trader decided to hold back from the market for a moment, for the market is too risky.

The trader speculated that the price might finally stabilize at around USD25/kg, as some other market participants estimated. "Although it is too hard to make a judgment, personally I think USD25/kg would be a reasonable price as a start for next round of market movement," said the trader.

"I did not hear so low a price as below USD35/kg, though the market keeps fast declining," said a German trader. The trader believed that the current workable prices should be in a range of USD43-44/kg.

"It is too difficult to say what a low level the price would touch, but the same period last year, the price was only around USD20/kg," the trader said, adding that a price of around USD25/kg is possible.

A French trader is closely watching the market and plans to purchase some at appropriate time. "However, by the moment, we have not taken any action, but waiting and watching. The price may soon slide to close to USD30/kg from current over USD40/kg - who knows?" the trader told Asian Metal.

Although the price dropped down so much recently, market participants reported less deals concluded.