- Stable global, LME futures prices
- Restricted availability of molybdenum oxide
Ferro molybdenum prices in India experienced a downward adjustment of INR 22,000/t ($263/t) in comparison to the prior assessment on 5 June 2024. Prices still remained within a certain range and the supply-demand dynamics impacted prices.
Indian ferro molybdenum prices were INR 2,760,000/t ($33,031/t) exw-Nagpur on a 60% pro rata basis, according to BigMint’s assessment on 12 June. Approximately 5-6 t of deals in the INR 2,710,000-2,720,000/t ($32,433-32,552/t) price range were reported last week.
Factors affecting prices
Stable domestic market: Trends in the domestic sector remained almost steady with no major movements. The primary end-user which is the stainless steel sector, typically procures material on a monthly basis, therefore major deals were also not completed. Moreover, certain steel plants have long-term agreements with ferro molybdenum producers.
Sources informed that molybdenum oxide supply problems still persisted. Due to geopolitical concerns, there were delays in shipments, increase in shipping freight costs, and outages in certain global mines.
“There have been no significant changes in demand, and the shortage situation is unchanged. The latest decline can be viewed as a minor correction because prices had been rising steadily over the last several days”, a well-known Indian producer told BigMint.
Unchanged global prices: Prices for ferro molybdenum (Mo:60%) in China were constant w-o-w at RMB 249,000/t ($34,356/t) exw-Inner Mongolia. Molybdenum oxide prices were not lowered by miners, and demand stayed at normal levels.
Prices in South Korea (Mo:60%) and the US (Mo:70%) too remained steady w-o-w at $52/kg and $62/kg, respectively. Prices were consistent w-o-w in Europe as well.
Additionally, prices were stable w-o-w in London Metal Exchange (LME) platform as well, inching up by slight $0.21/pound to $23.34/pound on 11 June.
Outlook
Considering current market conditions, prices might stay within the current range, with minor fluctuations expected.
