China is poised to significantly increase its vanadium-nitrogen exports in 2024. This rise results from output reductions at South African producer Bushveld Minerals. Additionally, growing demand from the United States further fuels this trend. Chinese domestic producers are showing strong export interest, accelerating the market shift.
South African Output Decline Leads to China’s Market Expansion
Bushveld Minerals’ Vametco plant is undergoing essential equipment maintenance. This maintenance, due to cash shortages, runs from mid-December 2024 to late March 2025. Vametco’s output dropped by 19% year-on-year, producing 1,387t from January to September 2024. Consequently, a Panzhihua-based alloy producer stated that the South African producer will operate at lower run rates in 2025. Therefore, global supply faces direct impacts.
US Demand Drives Chinese Export Growth
Chinese vanadium-nitrogen exports more than doubled in 2024, reaching 2,523t. This surge compares to 945t in 2023. Specifically, December saw a five-fold year-on-year export increase. The US emerged as the largest buyer, importing 892t. Furthermore, a Chengdu-based alloy exporter said US demand for the alloy will move higher. SuperMetalPrice reports that President Donald Trump’s infrastructure plans contribute to this demand. Moreover, Canada and India also significantly increased their imports. Chinese alloy smelters actively target overseas markets. They aim to address domestic oversupply. Consequently, global vanadium-nitrogen prices will continue to be influenced.
Leave a Reply
You must be logged in to post a comment.