PRICING NOTICE: Amendment to Chinese vanadium fob price assessments

After a consultation period that began on September 22, Fastmarkets has amended the fallback measures to its two Chinese vanadium fob price assessments amid a significant drop in spot liquidity in China’s vanadium export market. 

In the absence of spot trades either reported directly or second hand, Fastmarkets will apply the fallback measures, namely, to convert Chinese domestic vanadium prices into their theoretical fob equivalents, using its own assessments of the domestic market and a formula that has been widely adopted by market participants.

Specifically, in the low-liquidity circumstances, the ferro-vanadium 78% V min, fob China price will be converted to basis vanadium nitrogen, basis 77%V, 16% N, ex-works China price.

The vanadium pentoxide 98% V2O5 min, fob China price will be inferred basis vanadium pentoxide 98% V2O5 min, ex-works China.

The specifications for the related two vanadium fob prices are as follows with the inclusion of the new low-liquidity measures in italics:

MB-FEV-0003 Ferro-vanadium 78% V min, fob China, $/kg V
Quality: Lump. V 78% min, Al 1.5% max, Si 2% max, C 0.06%, S 0.05%, P 0.05%, As 0.06%, Mn 0.5%, Cu 0.1%, Ni 0.15%, Mesh size 10-50mm, 90% min.
Quantity: Min 5 tonnes (+/- 5%)
Location: fob China (other delivery terms normalized)
Timing: Within 20 days
Unit: $/kg V
Payment terms: L/C, T/T, other payment terms normalized
Publication: Weekly, Thursday 2-3pm London time
Note: Low-liquidity measures are applied when necessary

MB-V-0002 Vanadium pentoxide 98% V2O5 min, fob China, $/lb V2O5
Quality: Brown flake. V 98% min, Si, 0.25% max, Fe 0.30% max, S 0.03% max, P 0.05% max, As 0.02% max, Na2+K2O 1.50% max.
Quantity: Min 5 tonnes (+/- 5%)
Location: fob China (other delivery terms normalized)
Timing: Within 20 days
Unit: $/lb V2O5
Payment terms: L/C, T/T, other payment terms normalized
Publication: Weekly, Thursday, 2-3pm London time
Note: Low-liquidity measures are applied when necessary

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Amy Lv by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Amy Lv, re: fallback procedures for Chinese vanadium fob prices.

To see all Fastmarkets’ pricing methodology and specification documents, please go to www.fastmarkets.com/about-us/methodology

Additionally, Fastmarkets has launched two weekly Chinese domestic price assessments for vanadium nitrogen and vanadium pentoxide (V2O5), expanding its current price coverage of the vanadium market.