India: Ferro molybdenum prices rise tracking LME gains

• Sellers raise offers as buyers remain cautious
• China prices ease while US, Europe strengthen

Indian ferro molybdenum prices witnessed an increase of INR 66,000/t ($749/t) as compared to the previous assessment on 3 September. Prices edged up as LME futures prices peaked to their highest levels over the last 2 years.

As per BigMint’s assessment on 10 September, ferro molybdenum prices stood at INR 3,166,000/t ($35,915/t) exw-India. Around 10 t of deals were reported last week in the price levels on INR 3,150,000/t ($35,734/t) exw.

Market recap (4-9 September)

Sellers lift offers as LME peaks, buyers cautious: The Indian domestic market remained largely steady with fundamentals showing little change, though prices edged higher as LME futures touched their highest levels over the past two years. It reached $25.93/lb on 8 September. The rise in LME prices encouraged sellers to raise their offers, reflecting stronger sentiment in the market.

However, buyers continued to exercise caution amid the sudden price surge, which limited overall trading activity. As a result, last week witnessed fewer transactions despite the upward movement in offers driven by elevated LME levels.

Global market trends: Ferro molybdenum (Mo:60%) prices in China inched down by RMB 2,000/t ($281/t) w-o-w to RMB 2,925,000/t ($41,073/t) exw-Inner Mongolia. The recent surge in prices of key molybdenum products increased downstream users price sensitivity, leading to more cautious purchasing.

Meanwhile, demand continued to grow, supported by expansion in downstream sectors such as construction, defence, and new energy vehicles, which boosted steel companies’ buying activity.

Additionally, in the US and Europe (Mo:70%), prices edged up by $ 0.4/kg w-o-w to $60/kg and $59/kg, respectively. In Europe, the market was supported by strong demand and continued interest from end-users.

Outlook

Prices in the coming days are likely to stay in the current range mainly driven by LME futures. Acceptance of buyers of elevated offers will determine the further price trajectory.