The steel industry accounts for more than 90% of global vanadium resource consumption, and steel companies have strong bargaining power.
Leave a message
The steel industry accounts for more than 90% of global vanadium resource consumption, and steel companies have strong bargaining power. The rapid development of vanadium batteries may lead to an increase in vanadium prices
The main resource consumption area is the steel industry, with consumption accounting for more than 90%, and steel companies have strong bargaining power.
Vanadium is currently mainly used in the steel industry. According to Vanitec data, in 2020, about 92.7% of the world's vanadium was used in the steel industry, mainly in alloy products such as ferrovanadium and vanadium nitrogen; about 3.5% of vanadium was used in the chemical and catalyst fields, including vanadium oxide, ammonium vanadate, vanadium sulfate, etc.; vanadium used in the titanium alloy field accounted for about 2.1%; vanadium consumption in the energy storage field accounted for 1.7%.
The concentration of the global steel industry is increasing, and the bargaining power of steel companies is improving. Since the 1970s, major steel-producing countries such as the United States, Japan, Germany, France, the United Kingdom, and Russia have experienced varying degrees of shrinkage in steel production and consumption after crude steel production peaked. In order to reduce costs and increase the bargaining space and voice of upstream resources, the world's major steel-producing countries have increased industry concentration and optimized the steel industry structure through mergers and reorganizations. In 2021, the world's top five steel companies are Baowu Group, ArcelorMittal, Anshan Iron and Steel Group, Nippon Steel and Jiangsu Shagang Group, accounting for 6.15%, 4.06%, 2.85%, 2.54% and 2.27% of the global production respectively. With the advancement of mergers and reorganizations of global steel companies, the bargaining power of steel companies for vanadium resources has gradually increased.
Address：Huafu Commercial Center, Wenfeng District, Anyang City, Henan Province, China
