The price of vanadium and other metals used in steelmaking has dropped to lows not seen in several months as demand softens on the back of a slowing Chinese economy.
The European spot rate for ferrovanadium, the benchmark for vanadium, is recently hovering at around $32.35 a kilogram, down 21% from the year-to-date high recorded in March. The commodity, used as a steel additive, last touched the trough in November of last year.
Ferrosilicon, another ferroalloy, now trades for about $1,300 a tonne in Asia, more than 20% cheaper than the start of the year.
The cost to import Chinese-produced magnesium into Japan is now about $3,250 a tonne, down 20% to 30% from the $4,000-plus readings seen in April.
Causing the downside trends is the receding demand in China, where a troubled real estate market has depressed housing construction.
The major developer China Evergrande Group filed for bankruptcy protection in the U.S. this month, and concerns are growing over a possible default by industry peer Country Garden Holdings.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
