- Chinese cost pressures sustain firm sentiment
- Weak stainless steel demand limits Indian buying activity
India’s ferro molybdenum (Mo: 60%) prices rose by INR 145,000/t ($1,523/t) w-o-w to INR 4,145,000/t ($43,537/t) exw. Indian prices went up following a slight hike in global prices and demand.
Close to around 50 t of deals were concluded last week within the price range of INR 3,850,000-4,165,000/t ($40,438-43,747/t) exw.
Market trends
Global: In China, prices (Mo:60%) edged up by RMB 1,000/t ($147/t) w-o-w to RMB 327,500/t ($48,203/t) exw-Inner Mongolia. The market recorded a brief price increase during the week, following gains in upstream molybdenum oxide, before stabilising as steel mills limited procurement to just-in-time purchases amid maintenance shutdowns. Higher production costs, supported by stricter environmental regulations and optimism over semiconductor-related molybdenum demand, helped producers maintain firm offers, although weak buying interest capped further gains.
Meanwhile, the molybdenum oxide market remained supported by tight concentrate availability due to stricter domestic mine safety inspections and reduced imports caused by maintenance at overseas copper-molybdenum mines. Roasting plants maintained low inventories and resisted price cuts. However, downstream alloy producers continued purchasing only small volumes, while limited demand from chemical and electronic sectors kept overall trading activity subdued despite strong cost support.
Europe’s ferro molybdenum market prices too inched up by $1/kg w-o-w to $73/kg, supported by sellers resisting lower offers despite muted summer trading activity and cautious buyer participation.
Molybdenum futures on the London Metal Exchange were largely steady, rising marginally by $0.2/lb w-o-w to $31.51/lb on 7 July.
India: Indian ferro molybdenum prices moved higher this week, tracking the upward trend in global markets as suppliers revised their offer levels. However, market activity remained subdued due to weak demand from the stainless steel sector. Buying interest was further affected after a leading domestic stainless steel producer reduced prices of 316/316L hot-rolled and cold-rolled coils by INR 7,000/t ($74/t), effective 6 July, reflecting softer downstream sentiment. Most consumers continued to procure material only for immediate requirements, avoiding bulk purchases amid uncertain demand.
While firm international prices supported seller confidence, sluggish stainless steel consumption and cautious procurement limited transaction volumes, keeping overall market activity muted.
Outlook
Indian ferro molybdenum prices are likely to remain firm in the upcoming week, supported by elevated global molybdenum prices and tight raw material availability. However, upside may remain limited as weak stainless steel demand, recent price cuts by domestic mills, and cautious procurement continue to weigh on buying activity. Unless downstream demand improves, the market is expected to stay range-bound with low trading volumes despite firm seller sentiment.
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