91% of global V demand - according to Largo's Sept. 2022 presentation - comes from the steel alloy (rebar) sector. As Mining.com reports, China might "cap domestic steelmakers’ output at 2022 levels" in an effort to curb price speculation, reduce carbon emissions and meet climate commitments. This would basically lead to zero growth in this sector and Vanadium demand falling victim to such measures:
"China’s unconfirmed plan to
limit annual crude steel output, as it seeks to curb iron ore price speculation, has been a drag on the market. China is set to release the plan by the end of this month, capping domestic steelmakers’ output at 2022 levels,
Bloomberg reported."
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