- Tight ore supply, strong demand keep prices supported
- Chinese prices rise RMB 6,000/t ($836/t) w-o-w
Indian ferro molybdenum prices stayed largely stable w-o-w, moving up slightly by INR 35,000/t ($399/t) as compared to the assessment on 6 August. Prices stayed firm with steady demand and slightly improved molybdenum oxide supply.
As per BigMint’s assessment on 13 August, ferro molybdenum prices in India were INR 2,980,000/t ($33,988/t) exw-India. Close to around 35 t of deals were reported to BigMint last week in the price range of INR 2,900,000-3,000,000/t ($33,075-34,216/t) exw.
Market summary (7-12 August \)
Firm sentiments despite partial relief in raw material supplies: The domestic ferro molybdenum market was steady demand, driven by consistent consumption from stainless steel and alloy steel producers. Molybdenum oxide shortage, however, persisted, with clearer supply trends expected next month. Although as per reliable sources, a few containers of molybdenum oxide were released for Indian sellers, slightly easing the crunch and causing minor softness in prices.
Despite this, overall sentiment stayed firm due to limited availability and stable end-user requirements. Market participants are watching global supply developments closely, as any improvement in oxide availability could impact prices. For now, sellers remain cautious, balancing stock holding with meeting ongoing buyer demand.
Uptick in Chinese prices: Ferro molybdenum (Mo:60%) prices in China went up by RMB 6,000/t ($836/t) w-o-w to RMB 274,500/t ($38,235/t) exw-Inner Mongolia. Rise in prices were supported by tight supplies and firm demand. Domestically, declining molybdenum ore grades and stricter environmental regulations restricted new production capacity, while maintenance at certain mines added to the constraints.
On the demand side, stainless steel and special steel production remained steady, with additional support from growing requirements in energy, military, and other sectors. With cost pressures and strong market sentiment in play, the ferro molybdenum market is expected to stay firm in the short term, as supply relief appears unlikely soon.
However, in the US and Europe (Mo:70%), prices inched down by $1/kg w-o-w to $56/kg and $55/kg, respectively.
Steadiness in LME prices: On the London Metal Exchange (LME), prices were largely stable, going down marginally by $0.09/lb w-o-w to $23.87/lb on 12 August.
Outlook
With supplies easing up a bit, prices in the coming days are expected to stay within current range only with some variations.
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