India: Ferro vanadium market strengthens after fresh deal fetches higher prices

• Cost pressure and deal support lift prices
  
  
• Cautious demand may moderate further price gains
  
  

Indian ferro vanadium prices increased by INR 36,000/t ($378/t) w-o-w to INR 1,436,000/t ($15,064/t) ex-works Raipur on 6 May 2026. The increase was driven by a recently concluded deal at an elevated level, reflecting improved market sentiment and stronger pricing traction.

Factors impacting prices

Upstream cost push strengthens domestic prices: In India, ferro vanadium prices moved higher, driven by elevated upstream costs, particularly vanadium pentoxide and aluminum inputs. Producers raised offer levels following higher long-term contract pricing from key raw material suppliers. With input costs remaining high and limited availability of low-priced feedstock, producers showed stronger resistance to discounting, reinforcing an upward shift in prevailing market quotations.

High-value deal reinforces price uptrend: A recently concluded deal at INR 1,445,000/t ($15,158/t) provided strong support to domestic ferro vanadium prices, anchoring market expectations despite subdued downstream demand. While steel mill procurement remained limited and traders stayed cautious, producers leveraged the high-priced transaction to justify stronger offers. This dynamic sustained the upward price trajectory even as broader buying interest remained selective and measured.

Chinese ferro vanadium slides marginally w-o-w: Ferro vanadium (V:50%) prices edged lower w-o-w, declining by RMB 1,000/t ($147/t) to RMB 95,500/t ($14,019/t). In contrast, the domestic vanadium pentoxide (VO) market, including tax, remained steady at RMB 85,000/t ($12,478/t), unchanged over the same period.

Outlook

In India, ferro vanadium prices are likely to stay supported due to elevated raw material costs, though gains may be gradual as demand recovery remains measured and buyers resist higher levels.