Actual quantities of vanadium supplied and consumed in Japan for first half 2008

The actual quantities of vanadium supplied and consumed in Japan for the first half (January – June) of 2008 were traced and the contents were as per the table attached hereto. The base to demand vanadium in Japan is the production of special steels and the special steel industry of Japan produced 13.742 million tons of special steels in the first half of 2008, which increased by 4.5% compared with that (13.143 million tons) in the same period of 2007 and indicated a vivid production activity. Accordingly, the actual quantity of vanadium consumed in Japan for the first half of 2008 had a substantial increase of 22.9% compared to that for the same period of 2007 and also the imports of ferro-vanadium into Japan in the first half of 2008 had a considerable increase of 30.7% compared with that in the same period of 2007. Needless to say, the quantity of ferro-vanadium produced in Japan for the first half of 2008 had increased by 12.5% on material base in comparison with that for the same period of 2007.

Namely, Japan consumed 4,633 tons in material of ferro-vanadium in the first half of 2008 (compared with 3,768 tons consumed in the same period of 2007) and also imported 3,460 tons in material of ferro-vanadium in the first half of 2008 (compared to 2,646 tons imported in the same period of 2007). In addition, Japan produced 1,940 tons in material of ferro-vanadium in the first half of 2008, which were compared with that (1,724 tons) produced in the same period of 2007.

However, Japan imported 1,208 tons in material of vanadium pentoxide, as raw material for production of ferro-vanadium, in the first half of 2008, which decreased by 11.6% compared to that (1,366 tons) in the same period of 2007.

For a reference, the market price of ferro-vanadium has also fallen since the beginning of October of 2008 and come down to a level of US$35 – 38 per kg. of V, having broken the line of US$40, in the middle of October. The price of ferro-vanadium in 2008 once rose to a level of US$85 – 87 per kg. of V in May to June but, in comparison with this steeply risen price of ferro-vanadium, the current price of this ferr-alloy has fallen to the half. Since the companies to produce vanadium have been limited in the world, a fall of price for ferro-vanadium is not so large as that of molybdenum (fallen to 1/3 of the peak) but, in view of the matter which the consumers concerned are anticipated to hold back their purchase of ferro-vanadium for a long period, the market price of ferro-vanadium will incline to fall further and gradually toward the end of this year. – TEX Report