- Tradable values touch INR 4,485,000/t ($46,744/t) exw
- Chinese prices hold steady w-o-w
Indian ferro molybdenum (Mo: 60%) prices increased by INR 64,000/t ($667/t) w-o-w to INR 4,400,000/t ($45,858/t) exw. Prices rose amid supported molybdenum oxide costs due to which sellers kept offers elevated.
Around 30 t of deals were reported last week within the price range of INR 4,400,000-4,485,000/t ($45,858-46,744/t) exw.
Market summary (24-29 September)
Global prices remain largely stable: In China, ferro molybdenum prices (Mo:60%) were unchanged w-o-w at RMB 343,000/t ($51,168/t) exw-Inner Mongolia. Steel mill tenders were still under implementation, keeping buyers focused on cost control. Meanwhile, tight molybdenum concentrate supply continued to keep raw material costs high, limiting smelters’ ability to reduce prices. Smelters were mainly fulfilling steel mill tender orders and were reluctant to offer additional spot material.
Also with the National Day holiday approaching, special steel producers were largely following existing production plans, resulting in lower spot purchases. Traders were also avoiding large inventory builds and focused on existing orders.
There wasn’t much activity reported in European market as well, with prices holding largely steady w-o-w at $77/kg.
LME molybdenum futures also remained stable, declining slightly by $0.15/lb w-o-w to $33.56/lb on 29 September.
Indian prices hold firm on cost support: The Indian domestic ferro molybdenum market remained firm, with prices staying at elevated levels, supported by steady imported molybdenum oxide costs. Imported molybdenum oxide was assessed at around $33.45/lb CNF India. Higher-priced deals concluded in the previous week also provided support to the domestic market, limiting any downward movement.
Meanwhile, the Indian stainless steel market remained supported by steady domestic demand, firm scrap prices and elevated input costs. However, buyers continued to adopt a cautious approach amid volatility in nickel prices and elevated container freight rates, which affected procurement decisions. Market participants expect buying activity to gradually improve in the coming weeks as downstream consumers begin replenishing inventories ahead of Diwali. Nevertheless, uncertainty over raw material and freight costs is likely to keep buyers cautious about building large inventories.
Outlook
Indian ferro molybdenum prices are expected to remain stable to firm in the upcoming week, supported by higher oxide costs. However, cautious buying and freight uncertainty may limit significant gains.
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