Both ferrovanadium and vanadium pentoxide prices remained low during 2003. Most industry publications attributed the low prices primarily to an oversupply of material on the market and flat demand in the steel and aerospace industries. The oversupply on the world market was reduced in 2003 by the closure of the Windimurra Mine in Australia (5,400 tons annual production capacity) and the temporary shutdown of the Tulachermet plant in Russia owing to management realignment. While supply and demand were almost balanced in 2003, high stock levels related to overproduction from 1999 to 2002 remained.

World resources of vanadium exceed 63 million tons. Vanadium occurs in deposits of titaniferous magnetite, phosphate rock, and uraniferous sandstone and siltstone, in which it constitutes less than 2% of the host rock. Significant amounts are also present in bauxite and carboniferous materials, such as crude oil, coal, oil shale, and tar sands. Because vanadium is usually recovered as a byproduct or coproduct, demonstrated world resources of the element are not fully indicative of available supplies. Global mine productiion of vanadium in 2003 was 60 Mt the same as 2002.