Riding on increasing steel output, global demand for vanadium is on the rise. Growth in demand is also due to an increasing trend towards micro alloying of steel. Global vanadium market is projected to reach 130.2 thousand metric tons by 2015.

Metallurgical application, particularly steel manufacture, represents the largest end-use market for vanadium. Vanadium market is expected to follow the cyclical nature of the steel industry and new applications in other industries are likely to drive demand for vanadium. Europe and Asia-Pacific account for a over 60% of the global vanadium market, as stated by Global Industry Analysts, Inc.

Steel manufacturing represents the largest end use market for vanadium, accounting for a share of over 87% of the total vanadium sale worldwide. Global demand for vanadium is projected to continue, with Chinese steel consumption not showing ant signs of an immediate slowing down. Added to that, steel output and consumption in other emerging markets is also increasing at a rapid pace. Currently, Europe stands to be the largest vanadium market in the world, with a share of over 32%. However, Asia-Pacific is all set to be the major consumer of vanadium in the near future. Vanadium consumption in Asia-Pacific is expected to be over 36 thousand metric tons by 2012, making the region the largest consumer of the metal.

Some of the applications of vanadium-based products that are under development could have a positive effect on demand for the metal. Select applications under development include vanadium steels for high-speed, high-energy autogenous welding, vanadium steels in electric power generating units to facilitate cost-effective power generation and to enhance the efficiency, vanadium redox flow battery for large scale energy storage systems, vanadium alloys for compressors of aero-engine gas turbines and vanadium high carbon grey cast irons for drums and brake discs.

Leading global and regional players operating in the market include Chengde Xinxin Vanadium and Titanium Co, Evraz Group, Highveld Steel and Vanadium Corp, Strategic Minerals Corporation, Stratcor Inc., OAO Chusovoy Metallurgical Works, McKenzie Bay International Ltd., Nippon Denko Co, Panzhihua Iron and Steel Group, Shieldalloy Metallurgical Corporation, Treibacher Industries AG, Vanadium Tula, Windimurra Vanadium Limited and Xstrata Plc. – Press Release