- Tight concentrate supply keeps prices elevated
- Stainless steel price hike supports ferro molybdenum
Indian ferro molybdenum (Mo 60%, 10-100 mm) prices went up further by INR 99,000/t ($1,022/t) w-o-w to INR 4,121,000/t ($42,554/t) exw, as per BigMint’s assessment on 20 May. Prices increased owing to steady demand, end-user price rise and continued shortage of raw material.
Close to around 55 t of spot deals were reported last week within the price bracket of INR 3,972,000-4,225,000/t ($41,015-43,628/t) exw.
Market recap (14-19 May)
Higher input costs, SS hike supports prices: Indian ferro molybdenum prices continued to hold at elevated levels amid persistently tight global availability of molybdenum concentrate. The ongoing shortage in the international market kept input costs high, prompting sellers to maintain firm offers across the domestic market. Regular trading activity further supported prevailing price levels, as buyers continued procurement despite higher rates.
Market sentiment also remained supported by the recent increase in stainless steel prices, particularly for 316-grade material, which has higher molybdenum consumption. A major Indian stainless steel producer revised its HR and CR coil prices upward by INR 10,000/t ($103/t) effective 19 May, citing firm nickel prices and sharply higher molybdenum costs. Additionally, rupee depreciation increased imported raw material costs, lending further support to ferro molybdenum prices.
Global price trends: Ferro molybdenum (Mo:60%) prices in China edged down by RMB 10,500/t ($1,467/t) w-o-w to RMB 325,000/t ($47,689/t) exw-Inner Mongolia. The market remained a bit weak and range-bound as trading activity stayed slow and buyers remained cautious. Major domestic producers kept their offers mostly stable, while some traders offering small discounts to secure deals. However, actual transactions were limited and mostly involved small quantities.
Stable international molybdenum oxide prices provided little support to the domestic market. At the same time, steel mills continued to purchase cautiously and were unwilling to accept higher prices, keeping market sentiment subdued. Participants expect the current trend to continue in the near term, with only minor price fluctuations likely unless demand improves.
In Europe, ferro molybdenum (Mo:70%) prices rose by $3/kg w-o-w to $70/kg but trading activity remained subdued, with participants adopting a wait-and-watch approach following recent price volatility and uncertain near-term direction.
Molybdenum futures on the London Metal Exchange increased by $1.4/lb w-o-w to $30.73/lb on 19 May.
Outlook
Ferro molybdenum prices in the coming week are likely to stay at current levels.
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