Shanghai Metals Market (SMM) assessed the average price of vanadium pentoxide (V2O5) at 69,500 yuan per tonne on 2 November 2026, down slightly month on month, with upstream offers indicated at 69,000–70,000 yuan/t and only a few small-volume deals concluded.

The picture is one of thinning liquidity rather than a collapsed market: sellers are still quoting, but buyers are absorbing material only as needed.

Flake offers and concluded business

SMM's daily assessment put the ex-works offer for vanadium flake at 74,000 yuan/t, again with only a small volume of deals concluded, while the current market quoted price of flake vanadium stood at 71,000 yuan/t. Downstream alloy enterprises purchased only as needed, and transactions were described as mediocre.

Indicative price unchanged, sentiment weak

The indicative price of flake vanadium remained at 80,000 yuan/t. End-user purchase willingness was weak and overall trading was sluggish. A later quote of 72,000 yuan/t attracted moderate inquiries but no deals were concluded, as downstream alloy plants had limited purchasing capacity.

Demand in the period was dominated by alloy producers buying on a hand-to-mouth basis, with limited purchasing capacity and weak end-user buying interest — indicating soft near-term vanadium feedstock demand beyond steel and alloy consumption.

What it means for VRFB electrolyte supply

Vanadium demand remains overwhelmingly metallurgical: USGS and Vanitec estimates put special steel at roughly 90% of consumption, with vanadium redox flow batteries (VRFBs) at about 5%, chemical catalysts 3% and titanium alloys 2%. That structure means the flow battery industry inherits a feedstock price set largely by steel and alloy cycles, even though VRFB is the fastest-growing demand segment.

For electrolyte producers, a soft alloy market is a mixed signal. It eases near-term procurement pressure on vanadium units, but it also leaves the supply chain's investment case resting on VRFB scale-up rather than on current metallurgical offtake. With alloy plants buying hand-to-mouth, spot liquidity stays thin — which tends to amplify price moves once storage demand does pick up.

Note: SMM's flake assessment and SunSirs' 99% V2O5 benchmark (around 97,900 yuan/t on the same days) are separate series covering different specifications and assessment methodologies.

This article was assisted by AI analysis. Please refer to the original source for official information.