- Prices ease across key global markets
- LME futures tick down by $0.9/lb w-o-w
Indian ferro molybdenum prices declined over the week by INR 100,000/t ($1,134/t) compared to the previous assessment on 24 October. The drop was mainly driven by weak demand and sluggish consumption in the stainless-steel sector.
According to BigMint’s assessment on 29 October, ferro molybdenum prices in India stood at INR 2,950,000/t ($33,448/t) exw. Around 30 t of material were traded last week within the price range of INR 2,920,000 – 3,175,000/t ($33,108-35,994/t) exw.
Market recap (24-28 October)
Market activity slows on soft demand: Ferro molybdenum prices declined amid weak demand and limited trading activity in the market. Consumption in the stainless-steel sector remained subdued, as cautious procurement by steel mills continued to weigh on overall market sentiment. A seller informed BigMint, “Ferro molybdenum prices are showing extreme volatility, ranging between INR 2,800,000/t ($31,747/t) and INR 3,000,000/t ($34,015/t) depending on quantity, payment terms, and other factors.”
Global market trends: Ferro molybdenum (Mo:60%) prices in China dropped by RMB 9,000/t ($1,268/t) w-o-w to RMB 273,500/t ($38,525/t) exw-Inner Mongolia. The market remained sluggish amid weak demand from the downstream stainless steel and special steel sectors, reflecting subdued market sentiment and limited buying activity.
Meanwhile, molybdenum concentrate prices softened, reducing cost support for producers. With both demand and cost support remaining weak, ferro molybdenum producers cut margins to promote sales. The overall market sentiment remained bearish, leading to a sharp decline in transaction prices.
Additionally, Prices in US and Europe (Mo:70%) also went down by $0.9/kg w-o-w to $57/kg and $56/kg, respectively.
LME futures edge lower w-o-w: On the London Metal Exchange (LME), molybdenum futures edged down by $0.9/lb w-o-w to $24.49/lb on 28 October.
Indian stainless steel prices inch down w-o-w: Prices of 316-grade stainless steel hot-rolled coils (HRCs) went down by INR 2,000/t ($23/t) w-o-w at INR 343,000/t ($3,886/t) exw-Mumbai.The stainless steel market remained sluggish post-Diwali, as weak demand and cautious buying sentiment continued to weigh on overall trading activity.
Outlook
Ferro molybdenum prices are expected to remain volatile in the near term, though a potential recovery could be seen if domestic demand and global prices improve.
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