Promote and influence the global vanadium market China's vanadium industry development pattern and market trend analysis ChinaCCM Yu Yang

Transcription

1 Promote and influence the global vanadium market China's vanadium industry development pattern and market trend analysis ChinaCCM Yu Yang March 2013

2 The introduction of vanadium The vanadium are rare and refractory metal,with tungsten, molybdenum, titanium and niobium,they are attributable to the noble alloys in the ferroalloy sector Vanadium are mainly used in the three major areas of steel, chemicals, titanium, and the proportion in steel consumption accounted for more than 90%,Therefore we can say, the vanadium is heavily dependent on steel industry.in addition, emerging energy storage equipment vanadium battery caught the attention of the industry, has not yet entered the stage of large-scale commercial application. Vanadium as an alloy is added to the steel-making process, used in the construction steel, high-strength low-alloy steel, high alloy steel, tool and die steel.

3 1. The distribution of vanadium resources and industry development in China 1.1 Distribution of vanadium resource in China The vanadium resources in China mainly containing vanadiumtitanium magnetite and stone coal. Vanadium ore is distributed in more than ten provinces, but mainly in Sichuan, occupy 49% of the country's total reserves. More than 80% of vanadium production is obtained from the vanadium slag,a by-products in the production of iron and steel process from vanadium-titanium magnetite, and the vanadium-titanium magnetite resources in China is very rich, Reserves ranked third in the world, behind Russia and South Africa. It's worth noting that China has abundant stone coal containing vanadium in China, this became an important development direction in the vanadium resource utilization. According to statistics, the V2O5 reserves in the stone coal reached million tons, 2.7 times that the V2O5 in the vanadium-titanium magnetite

4 1.2 Extraction methods and contrast of vanadium in China Extraction of vanadium from the vanadium slag: Scale and cost advantages, represented by Panzhihua Steel and Chengde Steel; Extraction of vanadium from the stone coal: Adequate resources, but the high cost, the lack of a unified technological process, the enterprise is more dispersed, represented by shaanxi wuzhou. Extraction of vanadium from the spent catalyst containing vanadium: Recycling utilization of resources, Due to the strengthening of environmental policy, national control in this way is more stringent, represented by shenyang huarui and quanzhou jingtai.

5 1.3 China Vanadium industry development The rapid development of the terminal steel industry: China is the world's largest steel producer and consumer, especially since entering new century, with the continuing growth of macro economy and the rapid advance of the industrialization and the urbanization, the iron and steel industry has made remarkable achievements. According to statistics, China's annual crude steel output jumped to million tons in 2012 from 148 million tons in 2001, increased by 3.84 times, accounting for the proportion of global crude steel production has risen to 46.2% from 17.3% in 2001.

6 Vanadium industry development by leaps and bounds: The advantage of the traditional manufacturers Panzhihua Steel and Chengde Steel, are constantly increasing; the erprises extract vanadium from the stone coal have mushroomed set up and expansed in Shaanxi, Hunan, Hubei, Gansu and other provinces. In addition, a number of new enterprises extract vanadium from the vanadium slag,such as Chengde Jianlong, Sichuan Chuanwei and Yunnan Huayun, have also began to emerge and They have also began to expand. Especially with the development efforts of the country to increase in Panxi region vanadium and titanium resources base, vanadium products supply capacity is further enhanced In the future.

7 1.4 The status of china's vanadium industry in the world vanadium market Beginning in 2009, China's vanadium production and exceeded 50% of the share of international, thus become the largest country of the vanadium production and sales.the import and export trade of vanadium products in these years, China has maintained a pattern of export-led, played a role in boosting not only on the domestic vanadium market, but also played an important impact on the international vanadium market trends. According to chinaccm forecasts, in 2011 the global vanadium production (as V2O5) is expected to more than 125,000 tons, including the world's largest vanadium producer Evraz approximately 3.7 million tons. China's vanadium production is projected at 70,000 tons, including Sichuan Panzhihua Steel approximately 25,000 tons, Hebei Chengde Steel about 14,000 tons.

8 According to chinaccm forecasts, in 2012 the global vanadium production (as V2O5) is expected to more than 128,000 tons, including the world's largest vanadium producer Evraz approximately 3.3 million tons. China's vanadium production is projected at 73,000 tons, including Sichuan Panzhihua Steel approximately 29,000 tons, Hebei Chengde Steel about 16,000 tons.

9 2. Financial Crisis and China Vanadium market trends 2.1 China Vanadium price Before 2008: :Demand continues to increase, Social insufficient supply, most of the time,price of vanadium pentoxide (flake) are more than 90,000 Yuan/ ton, the price of ferro-vanadium more than 100,000 Yuan/ ton. In the second quarter of 2005, vanadium pentoxide at home and abroad, respectively, to reach a record high of 400,000 yuan / ton and $ 27 / lb, ferrovanadium hit a record high of 450,000 yuan / ton and $ 128 / kg (vanadium). Even After the callback, but the price of domestic vanadium pentoxide and ferro-vanadium most of the time can stick in more than 110,000 Yuan/ ton and 120,000 Yuan/ ton.

10 2.2 China Vanadium price After 2008 :

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12 3. Why China Vanadium market remains in the doldrums 3.1 More difficult global economy,china slowdown 3.2 The downstream steel industry into the era of meager profit, effectiveness continues to worsen Not much room for substantial growth of steel consumption. A sharp decline in profit margins of the steel industry sales:2005 year 6.25% 2011 year 2.42%, 80 key large and medium-sized iron and steel enterprises, Sales profit rate is almost zero (0.04%), profit is only 2.6 yuan per ton of steel in 2012.

13 3.3 The vanadium industry capacity continuously improve in China,oversupply situation intensified Production and supply capacity of vanadium industry in China is also growing, its growth rate has been significantly faster than the actual downstream demand situation. In 2012, the cumulative production of crude steel in China was million tons, a year-on-year growth of 3.1%. Vanadium production,consumption and exports in 2011:70,000 tons, 47,000 tons, 19,267 tons Vanadium production, consumption and exports in 2012: 73,000 tons, 50,000 tons, 15,775 tons

14 3.4 International vanadium market always vulnerable run, China vanadium exports suppressed

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16 4 The favorable factors of China Vanadium market 4.1 Promote the use of high-strength Steel bar in China's 12th Five-Year Plan In early November 2011,The MIIT released the iron and steel industry of the 12th Five-Year Development Plan,and Followed by released development plan Interpretation in early December. These policy files are mentioned the use ratio of high-strength Steel bar increased to 60% in the construction steel, this means the demand of steel containing vanadium is expected to significantly increase,the potential demand for space is strong too. 4.2 The road to commercialization of the vanadium battery

17 But in many kinds of steel, ferro-niobium and ferrovanadium substitutes for one another.related research data, the ferroniobium demand will rapidly increase to 15 million tons. Ferroniobium production of Brazilian Mining Company CBMM, the world's biggest ferroniobium manufacturers, will increase by 64%,from 61,000 tons / year in 2010 to 100,000 tons / year in 2014, and its production capacity from the current 100,000 tons / year, an increase of 50% to 150,000 tons / year. In September 2011,by CITIC, Baosteel, Anshan Steel, Shougang and TISCO form Chinese consortium was established by a company called China niobium industry investment holding co., LTD., has been completed for $1.95 billion of Brazil's mining and metallurgy (CBMM) 15% equity acquisition. There is no doubt that this will further enhance the promotion and application of ferroniobium in China, thus will be more conducive to the imports of ferroniobium, and will eventually threaten of vanadium alloy sales, including ferrovanadium and vanadium-nitrogen.

18 5 China Vanadium market trends In the future In the face of frequently lower price of vanadium,many domestic stone coal vanadium extraction enterprises already have discontinued or reduced production, the majority of vanadium extraction of vanadium slag corporate profit margins along with compression exhausted. May be reluctant to sell more atmosphere enhanced the cheap cost of production support and market situation, the late vanadium price plunged possibility no longer exists. But to sum up, the current domestic and international vanadium market is still at a low ebb, the lack of sustained upward momentum. Although the countries recommended by the good news of the high-strength steel, but excess supply and demand in the vanadium industry continues to intensify, the terminal still encounter many negative factors in the winter as well as the outer disk vanadium City suppress steel, vanadium market weakening trend, price stabilization and recovery difficult industry confidence suffered a serious setback. I predict that the future Chinese vanadium price will remain at low levels, depth consolidation, it is difficult to see a real improvement.