- Chinese prices strengthen by RMB 1,000/t ($148/t) w-o-w
- Regular trades provide support to prices
India’s ferro molybdenum prices remained unchanged w-o-w at INR 4,359,000/t ($45,528/t) exw, as supported global market conditions continued to underpin domestic offers. Around 70 t of deals were reported to BigMint last week in the range of INR 4,060,000-4,450,000/t ($42,405-46,479/t) exw.
Market updates (13-18 August)
Global
In China, ferro molybdenum prices edged up by RMB 1,000/t ($148/t) w-o-w to RMB 340,000/t ($50,420/t) exw-Inner Mongolia. The spot market showed a slight upward trend, supported by positive signals from mine tenders, which encouraged to raise offers. Supply remained relatively tight, while traders showed limited willingness to sell at lower price levels.
Market inquiries also improved somewhat, with some buyers actively seeking supplies. However, transaction activity remained concentrated in small to medium sized lots, with no significant large volume deals. Steel mills largely remained on the sidelines awaiting the finalization of steel tenders, keeping immediate restocking limited. As a result, the recent price rise was driven more by market sentiment than by a substantial improvement in transaction volumes.
In Europe, the market lagged Asia but continued to firm gradually in line with prevailing molybdenum oxide prices. European prices edged up slightly to around $76/kg, reflecting continued support from upstream raw material costs and firmer global sentiment.
Molybdenum futures on the London Metal Exchange were steady w-o-w, going up slightly by $0.04/lb w-o-w to $33.4/lb on 18 August.
Indian
Supported global sentiments kept Indian offers on the higher side, while regular spot trades continued to provide support to elevated price levels.
The Indian stainless steel market provided additional support to ferro molybdenum prices. A leading Indian stainless steel producer raised domestic HR and CR coil prices by INR 1,000-3,000/t ($10-31/t) exw on 14 August, marking its second price revision during August. The price hike was supported by firmer input costs, including elevated molybdenum prices, and stronger stainless steel market sentiment.
Outlook
Indian ferro molybdenum prices are expected to remain firm in the coming week, supported by elevated global prices, steady spot trades and positive stainless steel sentiment. However, limited large-volume buying may cap further gains, keeping prices elevated but rangebound.
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