Largo Inc (LGO)

[Slashnuts]

European Vanadium Up Again...$28.50-$29.15

China has historically been the "cheaper" source of vanadium. China is very short on material so the price is currently $33. Europe is $29. When prices spiked, European buyers backed away from the Chinese markets. The fact that they're once again active in China must mean they're having a hard time finding material as well.

IMO, Chinese and European vanadium prices will meet in the middle from where they are now. Once they converge, prices will momentarily consolidate, then head higher. I believe V2O5 will soon be $35-$40...

Some of the recent "breather" Chinese vanadium prices have taken was caused by substituting niobium for vanadium. (Niobium prices are up 50%) Steel producers are now maxed-out with substituting niobium for vanadium. They simply can't substitute more without making extremely costly upgrades. Even then, only so much niobium can be substituted for vanadium. In some cases, niobium can't be substituted at all.

GLOBAL VANADIUM WRAP: European FeV market breaks through to new record highs
Supply constraints continued to drive European ferro-vanadium and vanadium pentoxide prices to new heights, with both markets reaching record highs while the Chinese export market remained dormant.

Chinese export prices remain flat absent export activity EU FeV prices set new record heights EU V2O5 market edges upward to new record high US FeV bolstered despite thin spot trading China China’s ferro-vanadium export price remained stable for the fifth consecutive week in the seven days to November 15, despite a slight recovery in buying interest from overseas market participants amid the further narrowing in the price spread between China’s domestic and export market. Fastmarkets’ latest price assessment for ferro-vanadium, 78% minimum, fob China, was $130-140 per kg on Thursday, unchanged since October 18. Although no export deals were concluded in the pricing week, Chinese ferro-vanadium traders have at last received inquiries from foreign buyers starting from this week, sources said. “We received some inquiries from European buyers this week... but we haven’t given any [offers] so far,” a ferro-vanadium trader said on Thursday. “[But] we will have a discussion on how to offer later.” The same trader.

https://www.metalbulletin.com/Article/3845142/Vanadium/GLOBAL-VANADIUM-WRAP-European-FeV-market-breaks-through-to-new-record-highs.html

Good Luck To All!$!$