Fluctuating ferro vanadium (FeV) prices, which are affected by changes in ore supply, demand for steel, and energy policies, can make it hard to budget and plan purchases. At ZhenAn International Co., Limited, we have 30 years of experience in FeV production. This means we can help our clients deal with price risks. Here's how we help you stay ahead:
1. How we work out prices
ZhenAn's analytics team watches more than 15 market indicators, including:
Vanadium pentoxide (V2O5) prices are closely linked to iron (Fe) prices (80% correlation).
The amount of steel that will be produced in the future is predicted to rise. For example, it is expected that China will increase its steel production by 4% in the third quarter of 2024.
The demand for energy storage is expected to grow by 22% every year, with vanadium redox flow batteries being the main source of this demand.
We give our clients quarterly price predictions, and we got 90% of our 2023 predictions right.
2. How to buy things without getting stung by sudden price hikes
ZhenAn's custom contracts can help you avoid the worst of the spot market.
Price-lock agreements: Set prices for between six and 12 months, which is perfect for car manufacturers who have a fixed budget for their projects.
Prices depend on how much you buy: You can save 5–8% on orders of more than 500 tons.
Index-linked formulas: Change the prices every month using the Metal Bulletin indices, making sure that buyers and sellers are happy.
3. Strategic Inventory Solutions
ZhenAn's global stockpiles (8,000+ tons across grades) act as a price buffer:
FeV80 reserves: 3,200 tons in Rotterdam and Houston warehouses.
We have 4,800 tons of FeV50/FeV60 for our construction steel clients.
During the second quarter of 2023, when prices went up by 18%, we supplied 1,500 tons at the same rates as before the crisis to our loyal partners.
4. Controlling costs by owning all parts of the process
We own 40% of our vanadium slag sources (through partnerships in Australia and Canada). This means we can more easily control the cost of raw materials. Our in-house refining process reduces costs by 12%, which we then pass on to our clients.
Case Study: Solar Component Manufacturer
A client had to deal with a 30% price increase for FeV before a big sale. ZhenAn:
We agreed a 6-month contract to buy 200 tons of FeV75 at a set price.
We delivered 50 tons of stock from Singapore to meet immediate needs.
Result: The client got the contract with a 15% cost advantage.
Why should you choose to work with ZhenAn?
It can hold 150,000 tons every year. If there's a sudden increase in demand, you can adapt your scale to meet it.
Dynamic hedging: Use FeV futures on LME/MBX to reduce risk.
Market alerts are available 24/7. You will receive updates by text or email if the price reaches a critical level.
Do something now to keep costs steady
If you need to buy something now or if you need to buy something over a few years, ZhenAn can help you. We can help you to be more sure about prices. Email sale@zanewmetal.com to request our Q4 2024 price forecast or discuss ways to reduce risk. With over 300 experts and over 30 years of experience, we can help you protect your investments in the FeV market.
