Major Australian steel mill secures large volume FeV below USD40
2005-09-22 11:26:43 【Print】
BEIJING (Asian Metal) 22 Sep 05 – In recent days, as ferrovanadium 80%min traders and suppliers lament of few material in the market resulting in it being traded at as high as USD65-67/kg V d.p. in warehouse Rotterdam as at today for prompt delivery, an Australian steel mill has successfully concluded a mouth-watering 170t-deal of ferrovanadium 80%min with a South Africa-based producer at below USD40/kg V CIF Australian port, Asian Metal reported exclusively.
The material, to be delivered in January 2006, is considered by many market participants as highly strategy and significant to the company and the entire market respectively in a now volatile ferrovanadium market since its price plummeted from as high as USD135/kg V d.p. in warehouse Rotterdam late April to as low as USD39-40/kg V d . p . mid-August .
An executive official of the steel group that piloted the negotiation remarked thus: “Since our goal is to have a stable and secure supply of raw material for our plant, we were, therefore, guided by recent happenings in the market.”
Asked why many traders seem to be concluding on low volume deals at high price these days in contrast to his company’s deals, he said, “On one hand, now that the material is being offered at high price again, many are very scared that the price might go down again and want to avoid the unpalatable experience of the recent past.” “On the other hand,” continued the official, “we are motivated and guided only on the need to have a stable and secure supply of the material from our end and to win us back into business from the producer’s end, and not necessarily the cost as many are wont to believing . ”
A Turkish trader who also recently concluded deals with a South Africa-based ferrovanadium producer, albeit small quantity, 2-5t at an undisclosed cost, confirmed the cheap offer from the South African company but marveled at the strength of the steel mill for getting such large material. “Getting such large material for such a very enticing price is considered a pipe-dream,” remarked the trader, “but today, it shows ‘nothing is impossible’ – apology to American Marines . ”
Market analysts are quick to point out that traders and suppliers may see South Africa as a refuge for conversion of vanadium pentoxide which is mainstream being offered for USD12.50-13.30/lb in warehouse Rotterdam into ferrovanadium since it is reportedly becoming difficult getting both Europe and Russia-based plant to conclude conversion contracts.