- Indian offers reach INR 4,450,000/t ($46,795/t) exw
- Buyers delay bookings amid higher prices
Indian ferro molybdenum (Mo: 60%) prices edged up by INR 110,000/t ($1,157/t) w-o-w to INR 4,310,000/t ($45,323/t) exw. Prices rose following an increase in molybdenum oxide costs along with global price hike.
Buyers, however, stayed cautious about procuring material and hence limited deals of around 15 t were reported last week within a price bracket of INR 3,950,000-4,325,000/t ($41,537-45,480/t) exw.
Market summary (30 July – 4 August)
Firm oxide costs lift global prices: Ferro molybdenum (Mo:60%) prices in China increased by RMB 1,000/t ($148/t) w-o-w to RMB 337,000/t ($49,900/t) exw-Inner Mongolia. Prices were supported by firmer upstream molybdenum oxide prices, prompting producers to raise offers. Sellers maintained a firm stance, limiting availability of low-priced material, while steel mills continued routine tenders with only limited spot deals concluded. Most buyers though remained cautious amid elevated prices, restricting purchases to immediate requirements.
In Europe, ferro molybdenum prices held near $74/kg, although buying interest remained weak due to the summer holiday season. Overall, tight raw material supply continued to support prices, while cautious procurement by steel mills kept transaction volumes limited.
Molybdenum futures on the London Metal Exchange also edged up a little by $0.74/lb w-o-w to $32.82/lb on 4 August.
India market follows global uptrend: India’s ferro molybdenum market moved higher over the week, tracking the firm global trend as rising raw material costs and developments in China lifted domestic offers. Seller quotations increased to as high as INR 4,450,000/t ($46,795/t) exw, although trading activity remained limited as buyers resisted the sharp price rise. One of India’s key suppliers told BigMint, “Prices have increased a lot. In a single day, prices have risen by INR 100,000/t ($1,052/t) exw, mainly due to an accident at a Chinese mine, which has resulted in short supply and huge demand in China. Acceptance of this rate will take time, so no deals have happened yet at these levels, but they are expected soon.”
Meanwhile, India’s imported molybdenum oxide prices also strengthened w-o-w to $32.91/lb CNF, reflecting higher global values. Despite the bullish sentiment, most buyers preferred to postpone purchases and closely monitor whether the current elevated price levels would sustain before committing to fresh bookings.
Outlook
India’s ferro molybdenum market is expected to remain firm in the coming week, supported by higher imported molybdenum oxide costs and strength in the Chinese market. However, buying is likely to stay cautious as consumers await price stability, keeping trading activity limited.
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