- Higher oxide costs support Indian prices
- Chinese prices rise RMB 2,000/t w-o-w
Indian ferro molybdenum (Mo: 60%) prices remained largely stable w-o-w, declining slightly by INR 31,000/t ($326/t) to INR 4,328,000/t ($45,497/t) exw. Prices remained supported by firmer global market sentiment and higher imported molybdenum oxide costs.
Deals for around 50 t were captured last week in the range of INR 4,400,000-4,450,000/t ($46,254-46779/t) exw.
Market summary (3-8 September)
Global market firms on stronger buying interest: In China, ferro molybdenum prices increased by RMB 2,000/t ($298/t) w-o-w to RMB 341,000/t ($50,816/t) exw-Inner Mongolia. Market sentiment remained bullish but cautious, as higher upstream molybdenum oxide prices increased smelting costs and supported higher spot offers. Fresh steel mill tenders and tight spot availability strengthened buying interest, while smelters remained focused on tender orders and controlled shipments.
However, limited steel mill profitability and strong price competition restricted further upside, keeping the market firm without a clear upward trend.
Global molybdenum market sentiment also turned noticeably firmer last week, with buying activity and spot liquidity improving across Asia and Europe. Markets saw more active transactions, while sellers maintained firm offers amid higher replacement costs. Buying interest strengthened in South Korea and Europe, with European ferro molybdenum activity picking up as traders and steel-sector participants returned from their summer holidays and expected to commence September restocking. Increased prompt-material demand in Rotterdam further reflected stronger downstream engagement.
In Europe, ferro molybdenum prices edged up slightly to around $76/kg, supported by improving buying interest and firmer global sentiment.
LME molybdenum futures remained broadly stable, declining marginally by $0.04/lb w-o-w to $33.38/lb on 8 September.
Indian market remains supported by higher oxide costs: Indian ferro molybdenum prices remained largely stable despite the marginal w-o-w decline, as higher molybdenum oxide costs continued to support domestic offers. Imported molybdenum oxide prices increased by $0.20/lb w-o-w to $33.55/lb CNF India.
India’s stainless steel finished market also remained firm, with prices rising despite subdued demand, supported by tight availability of key raw materials, particularly scrap, and volatile nickel costs. Buyers remained cautious at higher price levels and largely purchased only as required, while resistance to higher scrap offers and a wait-and-watch approach toward imported material continued. Domestic scrap attracted relatively better buying interest. The market is expected to remain firm, although subdued demand and the upcoming festival season could further limit buying activity.
Outlook
Indian ferro molybdenum prices are expected to remain stable to firm in the coming week, supported by higher oxide costs, firmer global sentiment and improving overseas buying interest. However, cautious domestic buying and subdued stainless steel demand could limit further gains.
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