Last week the vanadium price jumped by 8.71% in response to continuing supply shortages and strong demand. Vanadium prices have already increased by 130% in 2017 and 43% so far in 2018.
The increase to the vanadium price is being supported by structural changes including:
1) the Chinese Government has mandated an increase of vanadium in rebar
2) Vanadium redox batteries are consuming any available excess supply
3) China has banned slag imports from Russia and New Zealand, reducing a significant secondary supply
What does this mean for vanadium miners and explorers?
The structural changes in the demand for vanadium are supporting a rush for high quality vanadium assets. Mining companies, steel mills, battery manufacturers and trading houses are scrambling for projects and offtake agreements.
As the VRB market continues to grow, further competition between the steel industry and VRB manufacturers is setting the scene for increased competition for supply.
New Listings and M&A Activity in 2018
Both publicly listed and private Vanadium explorers with advanced, high quality assets are experiencing increased attention from potential offtakers and investors. The price rises in 2018 have set the scene for increased M&A Activity in the sector with numerous ASX listings, strategic trade sales and offtake agreements in progress.
Vecco Group’s Vanadium Project
Vecco Group is one of the key vanadium players set to benefit from the price increase. We are currently developing the Debella Vanadium Project in Queensland with production set to commence in 2020.