- Material supply is constrained
- Uptick in LME future prices
Indian ferro molybdenum prices saw a w-o-w increase of INR 65,000/t ($783/t) supported by good demand and the excess stock which was available in domestic market earlier, got sold out which kept prices on the uptrend.
As per BigMint’s assessment on 14 February, Indian ferro molybdenum prices stood at INR 2,390,000/t ($28,782/t) exw-Nagpur, on 60% pro rata basis.
Weekly market recap
Domestic price and stock dynamics: Domestic ferro molybdenum prices in India were stable for past few weeks without any major fluctuation. This was mainly because producers had enough material in stock and imports of molybdenum oxide had also increased. Excess inventory led some towards panic selling and with sufficient inquiries, prices were largely stable.
With the previous stock getting sold out, producers were able to raise their offers and there was acceptance for it in the market as well.
Global market overview: In China, the price of ferro molybdenum (Mo:60%) remained steady w-o-w at RMB 215,500/t ($30,005/t) exw-Inner Mongolia. And with the ongoing new year holidays, no major downfall or impact was observed in global prices. Participants in the market anticipate a rise in purchasing after the holidays as well. Prices in Europe (Mo:70%) also maintained its stability w-o-w and were standing at $47/kg.
However, prices on the London Metal Exchange (LME) platform showed a w-o-w increase of $0.43/pound to $19.77/pound on 13 February.
Outlook
Considering current market conditions, prices are expected to follow an upward trend in the near future, with no indications of sharp increase.