- Molybdenum concentrate prices surge in China
- Regular trades keeping prices supported
Indian ferro molybdenum prices witnessed an increase of INR 56,000/t ($654/t) as compared to the last assessment on 21 May. Prices moved up as imported molybdenum oxide prices rose amid firm demand and rising prices in the global market.
Ferro molybdenum prices in India were INR 2,553,000/t ($29,805/t) exw-India, as per BigMint’s assessment on 28 May. Prices are hovering close to 1-month high levels. Around 45 t of trades were reported to BigMint last week within the price range of INR 2,550,000-2,565,000/t ($29,770-29,945/t) exw.
Market summary (22-27 May)
Global hike in prices and demand: Ferro molybdenum (Mo:60%) prices in China increased by RMB 11,500/t ($1,596/t) w-o-w to RMB 245,500/t ($34,077/t) exw-Inner Mongolia. The ferro molybdenum market showed strong momentum as domestic molybdenum concentrate supplies remained tight, impacted by environmental protection restrictions in major production areas. Smelters were firm in maintaining prices, supported by high operating rates at stainless steel plants.
Looking ahead, tight raw material supply and strong seasonal demand for steel may keep prices around RMB 240,000/t ($33,313/t) exw. Still, uncertainties remain, including the potential decline in stainless steel export orders due to global economic changes and selling pressure from holders seeking to profit from high prices.
Prices edged up slightly in the US and Europe (Mo: 70%) by $1/kg w-o-w to $51/kg and $49/kg, respectively.
Uptick in LME futures prices: On the London Metal Exchange (LME) platform, prices inched up by $0.59/lb w-o-w to $20.46/lb on 27 May.
Impact on Indian market: Changes in the global market scenario influenced the Indian market as well. Offers went up and trades were also concluded at elevated levels. Additionally, sources indicated that ferro molybdenum and molybdenum oxide import volumes have gone down, supporting the price increase.
Outlook
If the current scenario persists, an upward movement in prices may be seen in the days ahead. However, a sharp hike is less likely.
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