Update on Japanese Vanadium Fundamentals
Source: SteelGuru (4/16/11)
"Industry expects a favorable adjustment on vanadium's supply and demand in 2011."
The output of crude special steels in Japan in the calendar year of 2010 came up to 24.671 million tons, up by 53% YoY as compared with that in the preceding year of 2009. Among special steel products, such special steels as high tension steel, stainless steel and alloy steel consume more vanadium for its productions and the total quantity of these special steel products produced in Japan for 2010 reached 2,400,000 tons, which had a substantial expansion of 38.2% compared to that for 2009.
On the other hand, the global supply of vanadium in 2010 became an excess. This oversupply of vanadium in the international market was due to an aftereffect of the Lehman shock, having caused a crisis of the world economy and the excessive stocks of vanadium accumulated in 2009 were carried over to 2010.
Also, according to a presumption by Evraz of Russia, the world output of vanadium in 2010 is estimated to be 64,000 tons, while the global consumption of vanadium in the same year is thought to be 61,000 tons. Therefore, there was no margin to adjust the world supply of vanadium in 2010. The parties concerned expect to see a favorable issue of the adjustment on supply and demand of vanadium to be implemented in 2011.