Market condition of Vanadium
Vanadium prices have risen sharply in the past two years, from $13.50/kg in December 2015 and up to $68/kg in May 2018, has risen more than 400%. As market demand has increased, major companies have also resumed the mining of vanadium, which has caused new fluctuations in vanadium prices, but in the long run, the supply of vanadium products cannot exceed its demand.
The price increase is driven by the basic structural deficit in the vanadium market due to the strong and growing demand of the steel industry is experiencing, with limited supply and limited new supply in the near future.
About 90% of vanadium consumption comes from the steel industry. As a result, the steel market will continue to support strong demand for vanadium, which is expected to grow at a compound annual growth rate of approximately 2% over the next 10 years, thanks to the use of steel in emerging markets (especially China's new standards through improved regulations) Support for increased strength.
In addition, more and more VRFB applications have significant upside potential, and current forecasts estimate that by 2030 VRFB will account for 20% of vanadium consumption.
Industry chain of Vanadium
As a major vanadium reserve country, China has a unique production capacity of vanadium raw materials. Our company is located in the “China Titanium Valley” and has a large number of titanium product manufacturers around it. They have a large demand for aluminum vanadium alloys.
During the period of tight supply of vanadium pentoxide, the company conducted on-site inspections on several occasions, and negotiated with large enterprises such as Pangang Group, Baoti Group, Hubei Yinhua and Shaanxi Wuzhou to achieve procurement, processing and sales of vanadium products.
It has become a stable production and sales company of vanadium products in the region and has provided a cost-effective and high-quality vanadium product supply relationship for the surrounding cooperative titanium products company. Based on good raw material supply, the company expanded its titanium product processing line and processed and sold titanium plates, titanium ingots, titanium crafts, and lifestyle products, forming a complete industry of raw material procurement, alloy processing, finished product production, and sales chain.
In the past year, the company has grown rapidly, focusing on the global vanadium product market, opening offices in Canada and Germany, and expanding the procurement of raw materials and products to the international market.
Forecasts indicate that by 2020, vanadium production will continue to be lower than vanadium consumption. What drives demand is the strong steel industry and the rapidly emerging vanadium redox flow battery.
Now, the vanadium market will feel additional pressure, as steel production, which accounts for 90% of vanadium consumption, will begin to compete with the growing vanadium battery market. It is expected that vanadium battery production will increase by 20% by 2030 - higher than the current market share 2%.
The aluminum alloy market is expected to exceed $150 billion by 2024. The rapid population growth and increased urbanization of the BRICS countries will be an important driving force for the global product market in the forecast year. These countries are gradually shifting their focus to industrial development investments in order to create jobs for a growing number of young and middle-aged people.
In particular, the development of infrastructure and housing in China and India will further promote the growth of the aluminum alloy market. In 2016, the value of the construction industry in the BRICS countries exceeded $3 trillion, and by 2024 this figure will be close to $8 trillion. The use of advanced materials in construction and the growing infrastructure such as bridges and bridges will drive the development of the global aluminum industry, and the alloy market will be in the near future.
According to the International Air Transport Association (IATA), the number of leaflets has increased from less than 3 billion in 2011 to more than 3.7 billion in 2016, a figure that will double in the next 20 years. In 2016, the United States, China, and the UK accounted for the majority of the total, with more than 1 billion orders, but India may surpass the UK and other countries in the next few years, including Germany, Japan, and Indonesia. The annual delivery of commercial aircraft is gradually increasing to successfully serve a large number of leaflets, thus driving the entire alloy market. The aluminum alloy market is divided into forged and cast alloys depending on the type of product. Forged alloys may have a significant share due to their superior strength and lighter weight than cast alloys. Aluminum-vanadium alloys have been used primarily in the automotive and aerospace industries.