- Stainless steel prices supported by rising ferro alloy costs
- Chinese prices inch up; LME futures hit new high
Indian ferro molybdenum prices increased by INR 167,000/t ($1,844/t) compared to the previous assessment on 4 February. The rise was driven by higher seller offers, supported by the upward trend in global markets and firm LME prices, along with steady demand from the end-user sector. In addition, molybdenum oxide shortage was reported in the global market leading to the rise in prices.
As per BigMint’s assessment on 11 February, ferro molybdenum prices stood at INR 3,243,000/t ($35,808/t) exw India. Prices are currently at their highest level since the end of March 2023, marking a nearly three-year high. Around 70 tonnes (t) of transactions were reported during the week, concluded within a price range of INR 3,050,000-3,250,000/t ($31,085-33,812/t) exw India.
Market updates (5 – 10 February)
Global market trends: Ferro molybdenum prices (Mo: 60%) in China inched up by RMB 6,000/t ($868/t) w-o-w to RMB 269,000/t ($38,924/t) ex-Inner Mongolia. The market witnessed a slight increase during the week, mainly driven by higher raw material costs.
Prices of molybdenum concentrate and molybdenum oxide continued to strengthen, significantly increasing production expenses for ferro molybdenum producers. Sustained cost pressure reduced sellers willingness to negotiate, keeping quotations firm across the market.
On the demand side, steel mills completed their final round of bidding and procurement ahead of the Spring Festival holiday, providing clear support to the market’s rigid demand. Supported by elevated raw material costs and steady purchasing activity, producers maintained firm quotations, resulting in a slight upward movement in ferro molybdenum prices.
European ferro molybdenum (Mo 70%) prices rose by $6/kg w-o-w to $63/kg, supported by limited spot availability, while muted buying interest capped further gains. Meanwhile, US ferro molybdenum (Mo 70%) prices also increased by $7/kg w-o-w to $65/kg.
LME futures at over 3-month high: Molybdenum futures on the London Metal Exchange (LME) inched up by $1.21/lb w-o-w at $24.94/lb on 10 February, marking their highest level in over three months.
Indian market scenario: Following the upward trend in the global market, Indian ferro molybdenum prices increased during the week. The rise was primarily supported by tight global supply and strengthening molybdenum oxide prices, which encouraged domestic sellers to raise their offers. Stronger international cues provided cost support, encouraging producers and traders to maintain firm quotations in the domestic market.
A seller recently told BigMint, “Ferro molybdenum prices have jumped significantly across markets, leaving buyers uncertain. With supply tightness emerging worldwide, ferro molybdenum appears poised for further gains.”
Meanwhile, steady demand from the end-user segment sustained trading activity, although buyers’ acceptance of higher offers remained limited. Around 70 t of transactions were concluded during the week.
Indian stainless steel market: India’s stainless finished steel segment remained largely range-bound amid heightened nickel volatility and limited spot buying interest. The appreciation of the Indian rupee further dampened export competitiveness and weighed on domestic sentiment, prompting buyers to adopt a cautious, wait-and-watch approach. However, rising ferro alloys input costs, particularly for key grades, continued to provide underlying support to stainless steel prices despite muted transaction volumes.
Outlook
Ferro molybdenum prices are expected to remain range-bound in the coming week. Movements in molybdenum oxide prices, along with global supply dynamics and market trends, are likely to determine the direction of domestic prices.
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