India: Ferro vanadium prices edge higher amid tight raw material supply, firm global cues

• Demand strengthens as mills release buying inquiries
  
  
• Chinese prices increase w-o-w on higher pentoxide costs
  
  

Indian ferro vanadium prices moved up slightly w-o-w on 11 March 2026, reflecting tightening raw material availability and supportive international sentiment. Domestic prices of FeV 50% increased by INR 4,000/t ($44/t) w-o-w to INR 1,300,000/t ($14,144/t) exw-Raipur on 11 March 2026. Although the increase was modest, the market remained firm as producers resisted aggressive discounting amid rising input costs and strengthening global signals.

Market participants in India noted that sellers maintained firm offers, supported by higher feedstock costs and cautious supply in the spot market. Buying interest from steel mills also improved slightly, with several mills releasing procurement inquiries for alloy additions. Since ferro vanadium is widely used in producing high-strength steel, fluctuations in steel sector activity continue to influence alloy demand.

Factors supporting the price rise

Tight vanadium pentoxide availability: Spot availability of vanadium pentoxide remains constrained globally. Some producers also limited sales volumes while monitoring market movements, keeping circulation supply tight and supporting ferro vanadium prices.

Rising Chinese prices: The Chinese ferro vanadium market has remained strong, supported by higher pentoxide prices and increased procurement interest from special steel mills. Rising inquiries and limited spot availability encouraged producers to raise quotations.

Prices of Chinese ferro vanadium (FeV 50%) rose by RMB 1,000/t ($146/t) w-o-w to around RMB 98,500/t ($14,351/t), while vanadium pentoxide prices increased by RMB 500/t ($73/t).

Improving special steel sector inquiries: Indian steel mills have gradually resumed procurement inquiries for alloy additions, particularly for microalloyed steels. Since nearly 90% of vanadium consumption is linked to steel production, buying interest from mills continues to influence market sentiment.

Outlook

In the near term, ferro vanadium prices in India are expected to remain strong, supported by tight vanadium pentoxide supply, global market strength, and sound procurement interest from steel mills.