India’s Removal of Customs Duty Boosts Chinese Exports
In response to India‘s recent removal of a 5% customs duty on vanadium pentoxide flake in July, Chinese suppliers are positioning themselves to increase exports to the Indian market. This development coincides with India’s launch of a Bureau of Indian Standards (BIS) certification program, which mandates that ferro-vanadium producers secure an annual license. This policy change is part of India’s larger initiative to enhance domestic steel production, with a target of reaching 300 million tonnes per year by 2030-31.
Rise in Imports and Increased Chinese Production
India has significantly ramped up its imports of vanadium pentoxide flake from China, shipping 120 tonnes between January and July 2023, a notable increase from the previous year when no imports occurred. In parallel, China’s production of vanadium pentoxide flake has risen by 9.8%, totaling 85,315 tonnes from January to August, according to industry estimates. The robust demand from India’s expanding infrastructure sector is anticipated to further drive these exports. A supplier in Sichuan has reported receiving numerous inquiries from Indian buyers, indicating strong market interest.
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