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Roskill Information Services: Higher Construction Standards Will Lead to Further Growth in Demand for Vanadium

August 12, 2010
    LONDON, August 12, 2010 /PRNewswire/ --

    - Vanadium: Global Industry Markets & Outlook (12th Edition, 2010)

    - Prices for Ferrovanadium Likely to Exceed US$50 Before 2015, But Will
      not Return to Highs Experienced in 2005

Vanadium prices have shown a high degree of volatility over the last 20
years. However, in the economic downturn in 2009, the price did not fall to
the lows experienced between 1998 and 2003. In a prompt response to economic
conditions, many producers cut output and limited the fall in price. The
recovery in prices for ferrovanadium stalled in mid 2010, but in the longer
term prices for ferrovanadium are forecast to rise to above US$50/kg.

Increasing role of China – both in supply and demand

Over the last decade, China has become both the main producer and
consumer of vanadium. In terms of supply, it now accounts for almost 50% of
the global total and planned expansion over the next two years will
consolidate this position. Chinese demand for vanadium grew at 13%pa between
2003 and 2009 in line with its burgeoning steel output. Countries with mature
economies have a much higher intensity of use of vanadium in steels than
industrialising countries; in 2008, intensity of use in the USA was more than
three times as great as that in China. Over the next decade one of the main
drivers for growth in vanadium demand will be a combination of strong growth
in steel output in BRIC countries and an increasing emphasis in these
countries on production of high strength low alloy steels with their higher
vanadium content. Both China and Japan are raising standards for the strength
of rebar steel, which will provide a further driver for growth in demand.

Potential for further growth in production capacity

World production of vanadium grew by more than 7%pa from 2003 to 2008.
Initially, production increases were met by taking up spare capacity at
existing operations but from 2006, capacity had to be increased to meet
demand. Most of this expansion, however, was also at existing mines and
plants, most notably in China. In the next few years additional supply will
come from further expansion in China, but also from re-opening the mine and
plant at Windimurra, a new mine and plant in Brazil, further expansion of
slag output in Sichuan as well as an increase in by-product output from
uranium processing in the USA and South Africa.

About 80% of vanadium is derived from mined ore, either directly as
mineral concentrates derived from vanadiferous titanomagnetite (VTM) or
indirectly from steelmaking slags, where the steel has been produced from
VTM. The difficulties associated with processing VTM for steelmaking has
effectively limited its use to the existing few steel plants in China, South
Africa
and Russia. All of the new sources of vanadium (as opposed to
expansion at existing operations) are expected to come from direct
exploitation of mineral concentrate or from secondary sources.

Over 90% of vanadium used in steel

Vanadium is added to steel, principally high strength, low alloy steels
in the form of ferrovanadium or vanadium-nitrogen proprietary alloys to
increase strength. At times of high vanadium prices or perceived tightness of
supply, vanadium is susceptible to some degree of substitution by niobium.
The use of niobium in flat products is now well established but vanadium is
the alloy addition of choice for rebar. Demand for high-strength steels in
construction is growing in line with an increased emphasis on life-cycle
costs in the construction industry and a growing awareness, in those
countries prone to earthquakes, that higher construction standards are
required to prevent mass destruction of buildings, such as occurred in
Sichuan province in 2008.

Vanadium is also used in the masteralloys added to titanium, a sector
largely driven by the demand for titanium alloys in commercial, business and
military aircraft. In the short-term, the main area of growth for vanadium in
chemical applications is in catalysts for desulphurisation, sulphuric acid
and maleic anhydride production. In the longer-term, vanadium consumption
could be stimulated by the further commercialisation of vanadium redox flow
batteries.

Vanadium: Global industry markets & outlook (12th edition, 2010) is
available at GBP2500 / US$5000 / EUR4000 from Roskill Information Services
Ltd, 27a Leopold Road, London SW19 7BB, England. Tel: +44(0)20-8944-0066. Fax
+44(0)20-8947-9568 Email: info@roskill.co.uk

Note to editors

The report contains 203 pages, 104 tables and 56 figures. It provides a
detailed review of the industry, with subsections on the activities of the
leading producing companies. It also analyses consumption, trade and prices.

    Table of Contents

    Page

    1        Summary                                                        1

    2        Introduction to vanadium                                       7
    2.1      Chemical and physical properties of vanadium                   8

    3        Vanadium sources and resources                                10
    3.1      Occurrence of vanadium                                        10
    3.2      Commercial sources of vanadium                                11
    3.3      World resources                                               13

    4        Mining and processing of vanadium                             14
    4.1      Production of vanadium raw materials                          19
    4.1.1    Primary - mineral concentrates                                19
    4.1.2    Co-product - slags                                            20
    4.1.3    Secondary - residues and spent catalysts                      22
    4.1.4    Other sources                                                 22
    4.2      Processing of vanadium raw materials into vanadium            22
    4.3      Conversion into ferroalloy products                           28
    4.4      Production costs for vanadium                                 29

    5        World production of vanadium                                  34
    5.1      Production capacity                                           37
    5.2      The increasing role of China and Russia in vanadium supply    38
    5.3      New production and expansions in production                   40

    6        World consumption of vanadium                                 42
    6.1      Substitution                                                  44
    6.2      Consumption of vanadium by region                             45

    7        Outlook for vanadium supply and demand to 2015                48
    7.1      Vanadium demand outlook                                       49
    7.2      Vanadium supply outlook                                       50
    7.3      Forecast supply and demand balance                            51

    8        Historical and forecast price trends for vanadium             53
    8.1      How vanadium is priced                                        53
    8.2      Historical price trends for vanadium                          55
    8.3      Outlook for vanadium prices                                   65

    9        Review of vanadium resources and production by country        67
    9.1      Australia                                                     67
    9.1.1    Potential producers of vanadium in Australia                  67
    9.1.1.1  Balla Balla (Aurox Resources)                                 67
    9.1.1.2  Barrambie (Reed Resources)                                    68
    9.1.1.3  Gabinintha (Yellow Rock Resources)                            69
    9.1.1.4  Windimurra (Windimurra Vanadium)                              69
    9.1.1.5  Other                                                         70
    9.2      Austria                                                       71
    9.2.1    Treibacher Industrie                                          71
    9.2.2    Hochvanadium Holding                                          72
    9.3      Belgium                                                       72
    9.4      Brazil                                                        73
    9.4.1    Potential production                                          73
    9.4.1.1  Maracas (Largo Resources)                                     73
    9.5      Burundi                                                       73
    9.6      Canada                                                        73
    9.6.1    Gulf Chemical and Metallurgical                               74
    9.6.2    Metallurg Vanadium                                            74
    9.6.3    Masterloy Products                                            74
    9.6.4    Potential producers of vanadium in Canada                     74
    9.6.4.1  Apella Resources Inc.                                         74
    9.6.4.2  Gossan Resources                                              75
    9.6.4.3  Argex Silver Capital Inc                                      75
    9.6.4.4  Norant Resources                                              75
    9.7      Chile                                                         76
    9.7.1    El Romeral                                                    76
    9.7.2    Ironsands                                                     76
    9.8      China                                                         76
    9.8.1    Vanadium resources in China                                   78
    9.8.2    Producers of vanadium in China                                79
    9.8.3    Profiles of leading Chinese producers of vanadium products    80
    9.8.3.1  Beihai Special Ferroalloy Group                               81
    9.8.3.2  Caixin Ferroalloy Plant                                       81
    9.8.3.3  Chengde Xin Xin Vanadium and Titanium Co                      81
    9.8.3.4  Chongyang Vanadium Iron Plant                                 83
    9.8.3.5  Chuantou Emei Ferroalloy Plant                                83
    9.8.3.6  Dalian Galaxy Metal Material Co                               83
    9.8.3.7  Dekun Vanadium Plant                                          83
    9.8.3.8  Dunhuang Jindi Vanadium Co                                    83
    9.8.3.9  Fuzhou Fuyuan Nonferrous Metal Products Co                    84
    9.8.3.10 Gansu Winshine Vanadium                                       84
    9.8.3.11 Hangten                                                       84
    9.8.3.12 Hengyang Chenhui Chemical Co                                  84
    9.8.3.13 Hongda Vanadium Co                                            84
    9.8.3.14 Huiyou Vanadium                                               84
    9.8.3.15 Huludao Hong Jing Environment Co                              85
    9.8.3.16 Jinzhou Kohsei Daye "Everbright" Ferroalloy                   85
    9.8.3.17 CITIC Jinzhou Ferroalloy                                      85
    9.8.3.18 Liaoning Chenguang Ferroalloy                                 85
    9.8.3.19 Liyuan Vanadium Plant                                         85
    9.8.3.20 Miyi Xingchen Vanadium and Titanium Alloys Co                 86
    9.8.3.21 M.S. Resources                                                86
    9.8.3.22 Nanyang Mengling Vanadium Processing Plant                    86
    9.8.3.23 Panzhihua                                                     86
    9.8.3.24 Panzhihua Jinjiang Metallurgical Chemical Plant               89
    9.8.3.25 Panzhihua Hongsha Vanadium                                    89
    9.8.3.26 SF Vanadium                                                   89
    9.8.3.27 Shaanxi Wuzhou Mining Co                                      90
    9.8.3.28 Shanghai Jiuling Smelting Co                                  90
    9.8.3.29 Shengchuan Vanadium                                           90
    9.8.3.30 Shuangfeng Vanadium Company                                   90
    9.8.3.31 Sichuan Guanghan Jin Mu Vanadium                              90
    9.8.3.32 Sichuan Zhuoye Vanadium                                       90
    9.8.3.33 Sino Vanadium                                                 91
    9.8.3.34 Tongren Vanadium                                              91
    9.8.3.35 Winshine Metallurgy Chemicals Co                              91
    9.8.3.36 Wuhu Renben Alloy Co                                          91
    9.8.3.37 Xichang New Vanadium and Titanium Co                          91
    9.8.3.38 Yaolinghe Vanadium                                            91
    9.8.3.39 Yuxi Pengcheng Chemical and Smelting Co                       92
    9.8.3.40 Zhuyu Vanadium and Titanium                                   92
    9.8.4    Chinese trade in vanadium                                     92
    9.8.5    Chinese consumption of vanadium                               97
    9.8.6    Chinese government policies affecting the development of the
             vanadium industry                                             97
    9.9      Czech Republic                                                98
    9.9.1    Nikom                                                         99
    9.1      Ecuador                                                       99
    9.11     Finland                                                       99
    9.12     France                                                       100
    9.13     Germany                                                      100
    9.13.1   GfE Metalle und Materialien (GfE)                            100
    9.13.2   Nickelhütte Aue                                              102
    9.14     India                                                        102
    9.14.1   Production in India                                          103
    9.14.1.1 Catalyst India                                               103
    9.14.1.2 Essel Mining                                                 104
    9.14.1.3 Premier Alloys and Chemicals                                 104
    9.14.1.4 RR Ferroalloys                                               104
    9.15     Japan                                                        104
    9.15.1   Kashima Kita Electric Power Corp                             105
    9.15.2   Metal Technology                                             106
    9.15.3   New Chemical Industries                                      106
    9.15.4   Nippon Denko                                                 106
    9.15.5   Shinko Chemical                                              106
    9.15.6   Taiyo Koko                                                   107
    9.16     Kazakhstan                                                   107
    9.17     South Korea                                                  108
    9.17.1   Korvan                                                       108
    9.17.2   Woojin                                                       109
    9.17.3   Trade in vanadium pentoxide and ferrovanadium                109
    9.18     Madagascar                                                   111
    9.19     Mexico                                                       111
    9.2      Namibia                                                      111
    9.21     Netherlands                                                  111
    9.22     New Zealand                                                  112
    9.22.1   BHP New Zealand Steel                                        112
    9.23     Poland                                                       112
    9.24     Russia                                                       112
    9.24.1   Reserves of vanadium in Russia                               113
    9.24.2   Production of vanadium raw materials in Russia               114
    9.24.3   Production of vanadium products in Russia                    115
    9.24.4   Leading producers of vanadium raw materials and products     118
    9.24.4.1 Evraz Group                                                  118
    9.24.4.2 JSC Pevouralsk                                               122
    9.24.4.3 JSC Volkovsky Rudnik                                         122
    9.24.4.4 JSC Chusovoy                                                 122
    9.24.4.5 JSC Uralredmet                                               124
    9.24.5   Potential sources of vanadium raw materials in Russia        125
    9.25     Somalia                                                      126
    9.26     South Africa                                                 126
    9.26.1   Reserves of vanadium in South Africa                         127
    9.26.2   Production of vanadium slag in South Africa                  128
    9.26.3   Leading producers of vanadium                                128
    9.26.3.1 Evraz Highveld Steel and Vanadium                            128
    9.26.3.2 Vanchem Vanadium Products                                    130
    9.26.3.3 Xstrata Alloys (Rhovan)                                      131
    9.26.3.4 South Africa Japan Vanadium (SAJV)                           132
    9.27     Swaziland                                                    133
    9.28     Sweden                                                       133
    9.29     Taiwan                                                       133
    9.3      Tajikistan                                                   133
    9.31     Tanzania                                                     134
    9.32     Ukraine                                                      134
    9.32.1   JSC Mariupol Metallurgical Complex                           135
    9.33     USA                                                          135
    9.33.1   Reserves of vanadium in the USA                              136
    9.33.2   Producers of vanadium in the USA                             137
    9.33.2.1 Denison Mines                                                137
    9.33.2.2 Strategic Minerals Corporation (StratcorӚ®)                   138
    9.33.2.3 Gulf Chemical and Metallurgical Corp and Bear Metallurgical  139
    9.33.2.4 Metallurg Vanadium                                           140
    9.33.2.5 Reading Alloys Inc.                                          140
    9.33.2.6 International Specialty Alloys (ISA)                         141
    9.34     Venezuela                                                    141
    9.34.1   Bitor                                                        141
    9.34.2   Lagoven                                                      141
    9.35     Zimbabwe                                                     141

    10       Use of vanadium in steel                                     142
    10.1     Distribution of vanadium use in steel                        142
    10.2     Strengthening mechanisms for steel                           143
    10.3     Use of vanadium in high-strength low-alloy (HSLA) steels     146
    10.3.1   Markets for HSLA steels                                      150
    10.3.1.1 Oil and gas industry                                         150
    10.3.1.2 Transport industry                                           153
    10.3.1.3 Pressure vessels                                             158
    10.3.1.4 Reinforcing bars                                             158
    10.3.1.5 Structural applications                                      158
    10.3.1.6 Outlook for use of vanadium in high-strength steels          159
    10.4     Use of vanadium in full alloy steels                         159
    10.4.1   Types of full alloy steel                                    160

    11       Use of vanadium in non-ferrous alloys                        162
    11.1     Use of vanadium in titanium alloys                           162
    11.2     Use of vanadium in superalloys                               166
    11.3     Use of vanadium in magnetic alloys                           166
    11.4     Use of vanadium in other non-ferrous alloys                  168
    11.5     Trends in demand for vanadium in non-ferrous alloys          169

    12       Use of vanadium in chemical applications                     174
    12.1     Use of vanadium in catalysts                                 175
    12.1.1   Sulphuric acid production                                    177
    12.1.2   Catalysts for Monomer production                             178
    12.1.3   Synthetic rubber production                                  179
    12.1.4   Flue gas desulphurisation and denitrification                179
    12.1.5   Hydrogen sulphide removal                                    181
    12.1.6   Fluid Catalytic Cracking (FCC) catalysts                     181
    12.1.7   Other catalytic uses                                         182
    12.2     Use of vanadium in batteries                                 182
    12.2.1   Vanadium redox flow batteries (VRB)                          182
    12.2.2   Producers of vanadium redox batteries                        184
    12.2.3   Lithium-metal polymer (LMP) batteries                        185
    12.3     Use of vanadium in corrosion inhibitors                      185
    12.4     Use of vanadium in medicine and pharmaceuticals              187
    12.5     Use of vanadium in dyes                                      187
    12.6     Use of vanadium in phosphors                                 187
    12.7     Use of vanadium in glass and ceramics                        187
    12.8     Use of vanadium in conversion coatings                       188
    12.9     Future trends in demand for vanadium in chemical
             applications                                                 188

    13       International trade in vanadium                              190
    13.1     Trade in vanadium ash, residues and slag                     190
    13.2     Trade in vanadium pentoxide                                  191
    13.3     Trade in ferrovanadium                                       196

For further information or a review copy of this report, please contact

Khayyam Jahangir (khayyam@roskill.co.uk). To receive press releases via
email, please contact Prakash Ramachandran (prakash@roskill.co.uk).

Web: http://www.roskill.com/vanadium

SOURCE Roskill Information Services


Source: newswire



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