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(AMM) Ferrovanadium tags rise on conversion bottleneck

April 16, 2010 - 21:48 GMT Location: NEW YORK

KEYWORDS: vanadium , ferrovanadium , molybdenum , ferroalloys , bulk alloys , ferrochrome

Vanadium and molybdenum prices posted the biggest gains in the ferroalloys complex over the past week, while spot activity for bulk alloys-with the exception of ferrochrome-remained sluggish for a second consecutive week.

Ferrovanadium business had been completed in a range of $16.50 to $17 per pound, up from $16.25 to $16.50 a week earlier, but vanadium pentoxide remained unchanged at $7.75 to $8.25 per pound.

"(Ferrovanadium) is very firm in the States; we're talking numbers in the high-$16-per-pound (range). There's still some difficulty in getting units that are U.S. friendly," a U.S.-based ferroalloy trader said.

The spread between vanadium pentoxide and ferrovanadium continues to grow, largely due to a conversion bottleneck. "In the U.S., conversion is still very difficult," said the trader, adding that the U.S. spot market is largely dependent on converter Bear Metallurgical Co. (BMC), a subsidiary of Gulf Chemical & Metallurgical...

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