India: Ferro vanadium prices stay muted as buyers resist fresh inventory build-up
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- Weak demand keeps ferro vanadium market subdued
- Falling raw material costs weigh on sentiment
Indian ferro vanadium prices remained largely stable during the week ended 17 June 2026, with a marginal correction of INR 2,000/t ($21/t) w-o-w to INR 1,398,000/t ($14,791/t) ex-works Raipur. Market activity remained subdued as buyers resisted higher offers, while weakening vanadium pentoxide prices and limited spot inquiries kept trading sentiment cautious.
Factors affecting prices
Soft demand curbs buying interest across market
Downstream demand remained sluggish, with steelmakers and alloy consumers limiting purchases to immediate requirements. Overall liquidity in the spot market was weak, and most traders preferred to stay on the sidelines amid uncertain price direction. Actual order inquiries were scarce, resulting in muted transaction volumes. Manufacturers also maintained cautious production schedules, procuring raw materials only against confirmed demand, reflecting the broader lack of confidence across the supply chain.
Additionally Chinese Ferro Vanadium (V:50%) prices dropped by RMB 3,500/t($518/t) w-o-w to RMB 84,000/t ($12,432/t).
Falling raw material costs pressure sentiment
Declining vanadium pentoxide prices continued to weigh on ferro vanadium market sentiment, making buyers reluctant to accept higher alloy offers. A key buyer told BigMint, End-users are purchasing only on a need basis as raw material prices remain soft and there is no urgency to build inventory.
While some high-cost producers have expanded production cuts and shutdowns, helping limit supply growth, the market remains under pressure from weak demand and cautious purchasing behaviour.
Outlook
The ferro vanadium market is expected to remain at lower levels in the near term. Cost support from production cuts may limit downside risks, but weak steel demand and seasonal consumption constraints are likely to cap any meaningful price recovery.
