- Global prices dip on weak demand
- Indian market stable on regular trades
Indian ferro molybdenum prices stayed largely stable last week, going down slightly by INR 16,000/t ($180/t) as compared to the assessment on 24 September. Regular trades in the domestic market along with minimal market movement kept the prices steady.
Ferro molybdenum prices in India were INR 3,068,000/t ($34,602/t) exw-India, as per BigMint’s assessment on 1 October. Approximately 70 t of trades were reported to BigMint last week within the price range of INR 3,065,000-3,150,000/t ($34,568-35,526/t) exw.
Market summary (25-30 September)
Slight decline in global prices: Ferro molybdenum (Mo:60%) prices in China edged down by RMB 7,000/t ($983/t) w-o-w to RMB 274,500/t ($38,556/t) exw-Inner Mongolia. The fall was mainly due to weak demand from stainless steel mills, who bought less and pushed prices down. Some sellers also offered discounts to raise quick cash, while global market fluctuations added further pressure.
In the short term, the market is expected to stay weak and unstable. The main problem is that demand from stainless steel mills hasn’t improved much. Steel producers are sticking to small, need-based purchases and are not ready to pay higher prices. As a result, traders are eager to sell, but buyers remain cautious. Prices may fall a little more, but the pace of decline could slow, keeping the market at a low level overall.
In US and Europe (Mo:70%) too, prices inched down by $0.5/kg w-o-w to $58/kg and $56/kg, respectively.
LME futures stable w-o-w: On the London Metal Exchange (LME), molybdenum futures were broadly steady, going down marginally by $0.11/lb to $25.03/lb on 30 September.
Stable domestic market backed by regular trades: Ferro molybdenum prices in India remained steady last week with regular trades of around 70 t keeping the market balanced. Seller offers also stayed unchanged as there was little movement in global prices and LME futures. Additionally, with ongoing domestic festivities, market activity slowed down, resulting in no major price variations. Overall, both stable demand and limited external influence contributed to a quiet and steady ferro molybdenum market during the week.
Outlook
In the coming days, ferro molybdenum prices are likely to stay within current range with slight variations.
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