India: Ferro molybdenum prices rise to nearly 2-year high amid supply constraints

• 55 t of deals concluded last week
• LME futures hold steady w-o-w

Indian ferro molybdenum prices continued their uptrend, moving up by INR 120,000/t ($1,397/t) in comparison with the last assessment on 9 July 2025. Prices reached their highest point since September 2023 as supply crunch of molybdenum oxide still persists in the market.

Ferro molybdenum prices in India were assessed at INR 2,850,000/t ($33,168/t) exw-India, as per BigMint’s assessment on 16 July. Around 55 t of deals were concluded last week in the price range of INR 2,785,000-2,850,000/t ($32,411-33,168/t) exw.

Market summary (10-15 July)

Limited supplies pushing up offers: The continued shortage of molybdenum oxide, which is a key raw material used in the production of ferro molybdenum, remained the major factor behind the price increase. Amid limited availability, producers faced higher procurement costs, which pushed up prices in the domestic market.

As a result, offers witnessed a sharp rise, reaching as high as INR 2,875,000/t ($33,459/t) exw. Routine trades at elevated offers kept prices supported.

Global trends: Ferro molybdenum (Mo:60%) prices in China inched down by RMB 1,000/t ($140/t) w-o-w to RMB 256,500/t ($35,759/t) exw-Inner Mongolia. However, production continued to rise. Environmental restrictions eased in key regions like Shanxi and Henan, leading to a rebound in smelter operating rates. Shipments from major mines, including Yichun Luming, also increased.

While mine bidding prices in Henan rose, weakening demand from the real estate sector and limited construction steel procurement kept overall demand subdued. Steel mills held back from stock replenishment, and the summer off-season added further pressure on prices.

In the US, ferro molybdenum (Mo: 70%) prices climbed to $55/kg, up $1/kg w-o-w. European prices also moved up by $1/kg w-o-w to $53/kg, supported by stable conditions despite weak demand.

On the London Metal Exchange (LME), prices remained mostly stable, edging up by $0.76/lb w-o-w to $22.98/lb on 15 July.

Outlook

Prices in the coming days are expected to follow an upward trend. However, the extent of the increase will largely depend on buyers’ acceptance.