- India faces shipment delays of molybdenum oxide
- Rising domestic prices in China
Indian ferro molybdenum prices rose by INR 116,500/t (tonne) ($1,395/t) w-o-w in comparison to the previous assessment on 1 May. Price increase was reportedly caused by material shortages in both the domestic and international markets.
As per BigMint’s assessment on 8 May, Indian ferro molybdenum prices were at INR 2,612,500/t ($31,285/t) exw-Nagpur on a 60% pro rata basis. Last week, around 60 t of deals were closed within the price bracket of INR 2,550,000-2,565,000/t ($30,537-30,716/t). However, prices have risen this week and producers are now quoting at around INR 2,600,000-2,650,000/t ($31,135-31,734/t) exw.
Market through the week
Logistical delays, limited supply: Shipments of molybdenum oxide, which is usually imported by Indian producers were delayed which might have been impacted by ongoing geo-political issues. As a result, the domestic market had restricted material supply. However, there was no rush amongst sellers to sell the material.
“Prices have jumped drastically in the international market and they are above INR 2,650,000/t ($31,734/t) exw now,” a producer told BigMint today.
Global price movements: China saw a w-o-w increase in ferro molybdenum (Mo:60%) price of RMB 10,500/t ($1,453/t) to RMB 242,500/t ($33,559/t) exw-Inner Mongolia. Demand increased, especially from steel factories in Shandong, Jiangsu, Zhejiang, and Hunan.
The US (Mo:70%) and South Korea (Mo:60%) saw $0.7/kg w-o-w increase in prices, to $60/kg and $49/kg, respectively.
With a slight uptick of $0.24/pound w-o-w to $21.02/pound on 7 May, the prices on the London Metal Exchange (LME) remained steady w-o-w.
Outlook
Considering the current market conditions, BigMint estimates a potential upward trajectory in prices in the coming days, or stability within the current range.