The development of the vanadium pentoxide industry has stabilized, and there are few development opportunities in the domestic market

Vanadium pentoxide is a metal oxide and the most common vanadium ore trade product. It is mainly used in many fields such as metallurgy, chemical industry, pharmaceuticals, water treatment, etc. Among them, as an alloy additive, it has a high demand in the metallurgical field and accounts for a large market share. The proportion reached more than 81%, followed by as an organic chemical catalyst, accounting for 12%.

According to the “2021 Vanadium Pentoxide Industry Investment Feasibility Analysis Report” released by the Industrial Research Center, adding Vanadium can greatly improve the strength and toughness of steel, and it is required to be added to domestic and international steel products. With the development of the steel industry, the application demand for vanadium pentoxide continues to rise. The output of vanadium pentoxide is related to vanadium ore. In 2019, my country’s identified vanadium ore resource reserves were approximately 69 million tons.

In 2019, my country’s vanadium pentoxide production was about 127,000 tons, and the apparent demand was about 123,000 tons. Affected by the epidemic in 2020, my country’s vanadium pentoxide industry was greatly impacted in the first half of the year. However, as the epidemic was brought under control in the second half of the year, the operating rate of vanadium pentoxide increased and the capacity utilization rate reached about 72%, making the domestic vanadium pentoxide industry Vanadium production has increased. In 2020, my country’s vanadium pentoxide production was 135,000 tons. In terms of apparent consumption, with policy support and the country’s encouragement of “internal economic circulation” in 2020, the domestic market demand for vanadium pentoxide has continued to grow in Yangcheng County, reaching 143,000 tons.

International steel production will be greatly impacted in 2020, and the demand for vanadium pentoxide will decrease accordingly, causing an oversupply in the vanadium pentoxide market. Overseas companies are actively exporting to the domestic market. Therefore, my country’s imports of vanadium pentoxide increased significantly in 2020, reaching 93 million tons, an increase of more than 530% over the previous year. In terms of exports, my country’s vanadium pentoxide exports continue to decline, reaching approximately 45 million tons in 2020, a year-on-year decrease of 11%. However, in 2021, the import and export of vanadium pentoxide returned to normal, with both prices falling sharply.

my country’s vanadium pentoxide production capacity is mainly in Hebei Province and Sichuan Province. The above two places are also the main export destinations of domestic vanadium pentoxide, accounting for more than 90% of the total export volume. my country’s vanadium pentoxide is mainly exported to countries such as South Korea, Canada, Japan and Germany. Global vanadium mines are mainly distributed in Australia, Russia, China, and South Africa, and are also the main import sources of vanadium pentoxide in my country.

Industrial analysts said that as a steel processing additive, vanadium pentoxide has high domestic demand and the domestic market supply and demand are relatively balanced. Affected by the epidemic in 2020, domestic production and demand for vanadium pentoxide increased, and imports also increased significantly. However, by 2021, the domestic and global epidemic situation will improve, and domestic imports of vanadium pentoxide will decline. Generally speaking, there is excess production capacity of vanadium pentoxide both globally and in my country, the industry has stabilized, and there are few opportunities for future development.