Largo Inc T.LGO

MB: FeV prices up due to concerns in Brazil

[kha341]

https://www.metalbulletin.com/Article/4024348/Vanadium/European-FeV-prices-gain-momentum-on-supply-concerns-in-Brazil-increased-buying-appetite.html

European FeV prices gain momentum on supply concerns in Brazil, increased buying appetite

Ferro-vanadium prices in Europe have risen since the start of 2022 amid high liquidity, with fresh offers rising rapidly due to supply constraints.

 

Fastmarkets assessed the price for ferro-vanadium, basis 78% V min, 1st grade, ddp Western Europe, at $34-37 per kg on Friday January 14, up by 4.1% from the previous assessment of $33.50-34.50 per kg on January 12. The price is now at its highest since mid-September of last year when it stood at $34.50-36.50 per kg.

More than 120 tonnes reportedly exchanged hands in Europe by the end of last week.

One of the main drivers is that vanadium pentoxide (V205) producer Largo was disrupted by heavy rainfall in November and December at the company’s Maracs operations, located in...

 

[kha341]

What are the other reasons for the increase in FeV prices besides Largo’s decrease in V2O5 production? Why was Largo’s production singled out?  Really strange to me.   Largo’s Q4-21 Production = 2,003 tonnes = 1,257T or ~38% lower than Q3-21 (3,260T). And that missing 1,257T of V2O5 due to abnormal rainfall in Nov & Dec was singled out as one of the reasons for the increase in

[NewAgeMetal]

I might not completely understand this but in addition, 40% less didn't go into the market because they sold off inventory. In terms of supply east it a 16% drop? totally baffled, from what we know, this was a one time event that has been repaired and a diversion system had already been construction for prevention should it happen again. topical: looks like the market thinks Bushveld will

[kha341]

Good point!

[kha341]

Actually the prices of FeV went down to around US$32/kg in April 2021 from the Q1-21 high of US$34/kg on March 4 2021.  So using the same logic as in the MB article should we also conclude that one of the main drivers for the drop in FeV prices in April-21 was the 1,765T (or 47%) decrease in Largo’s V2O5 production in Q1-21? So stupid!

[kha341]

Argusmedia: “ Ferro-vanadium prices were assessed today [ Jan 13 2021] at $34-35/kg duty paid Rotterdam (Note: as per MB, Jan 14 FeV = US$34 - 37/kg), up by around 5.3pc since the start of the year when they stood at $32.50-33/kg. Vanadium pentoxide flake prices have also edged up this week to $8.35-9.00/lb, having previously held firm at $8-9/lb since 9 December” Isn’t it weird that Euro V2O5