India: Ferro vanadium prices decline w-o-w amid weak demand, inventory build-up

• Demand slows down as mills optimise alloy consumption
  
  
• Cost support erodes amid vanadium pentoxide price drop
  
  

Indian ferro vanadium prices fell by INR 12,000/t ($125/t) w-o-w to INR 1,400,000/t ($14,616/t) ex-works Raipur on 03 June 2026.

India's domestic ferro vanadium market witnessed a softer trend this week, with prices declining w-o-w amid subdued trading activity and cautious buying sentiment. Market participants largely adopted a wait-and-watch approach as downstream alloy and steel consumers limited fresh procurement, while ample supply availability and weak cost support continued to weigh on market confidence.

Factors affecting prices

Steel mills' inventory overhang restricts fresh orders

Ferro vanadium prices faced sustained pressure as many integrated special steel mills continue to carry relatively high inventory levels from earlier procurement cycles. This has reduced the urgency for fresh buying in spot and tender markets, leading to thinner order volumes. At the same time, mills have also optimised alloy consumption per tonne of steel, further curbing demand intensity.

Vanadium pentoxide price decline pressures Indian market

Vanadium pentoxide prices fell sharply in international and import-linked markets, weakening cost support for Indian ferro vanadium producers, prompting softer offers and reduced price confidence among traders. With buyers already cautious amid limited steel demand and tight margins, the fall in raw material values further dampened procurement sentiment. Overall, the downward movement in vanadium pentoxide continued to act as a key drag on Indias ferro vanadium pricing structure.

Outlook

Indian ferro vanadium prices are expected to edge down as weak steel demand, high inventories, and lower vanadium pentoxide costs offset limited tender-driven buying support.