- Global concentrate shortage fuels bullish sentiment
- Leading Indian stainless player raises 316 grade prices
Indian ferro molybdenum (Mo 60%, 10-100 mm) prices surged by INR 267,000/t ($2,791/t) as compared to the assessment on 6 May. Prices have reached the highest level since March 2023 as the market is currently facing global shortage of molybdenum concentrate. That apart, China’s demand has also gone up fuelling positive sentiments.
Ferro molybdenum prices in India were INR 4,022,000/t ($42,037/t) exw, as per BigMint’s assessment on 13 May. The market is anticipating further price increase hence lower deals of around 30 t were concluded last week within the earlier prevailing price range of INR 3,870,000-3,880,000/t ($40,448-40,553/t) exw.
Market summary (7-12 May)
Strong market fundamentals
China: Ferro molybdenum (Mo:60%) prices in China went up by RMB 35,500/t ($5,227/t) w-o-w to RMB 335,500/t ($49,396/t) exw-Inner Mongolia. The molybdenum oxide market remained firm as improving upstream conditions boosted confidence among participants. Sellers largely adopted unified pricing strategies, while low-priced offers gradually disappeared, leading to a steady increase in spot quotations throughout the day.
Molybdenum concentrate prices also surged following a successful auction by a Luoyang-based producer, where high-grade material was sold at substantially higher levels compared with previous auctions. The result directly strengthened spot market sentiment, with traders showing limited willingness to offer discounts. Consecutive mine auctions in recent weeks have consistently pushed prices higher, reinforcing bullish expectations in the market.
Meanwhile, ferro molybdenum prices moved upward in line with rising raw material costs. Producers and distributors actively revised offers higher, while lower-end quotations continued to fade from the market amid sustained positive sentiment.
Rest of the world: Global molybdenum markets maintained a strong bullish sentiment, supported by tight spot availability and continued confidence across Asia and Europe. Market activity remained active following recent concentrate tenders in China, which strengthened overall sentiment and encouraged buyers to secure material amid rapidly rising offers.
In Europe, ferro molybdenum sentiment also stayed optimistic, supported mainly by stronger oxide values and tight material availability, although participants indicated that underlying demand conditions in the region remained relatively stable. Prices in the region (Mo:70%) went up by $2/kg w-o-w to $67/kg.
Molybdenum futures on the London Metal Exchange too edged up by $1.07/lb w-o-w to $29.33/lb on 12 May.
India: The global shortage of molybdenum concentrate continued to support strong sentiment in the ferro molybdenum market, triggering panic buying activity across major regions. Indian market sentiment was also largely influenced by the tightening global supply scenario, with buyers actively seeking material amid expectations of further increases. As a result, sellers raised offers steadily and remained firm in negotiations. Market participants indicated limited spot availability, which further strengthened bullish sentiment.
India’s imported molybdenum oxide (Mo:57% min) prices too went up by $1.9/lb w-o-w to $30.1/lb.
A key seller informed BigMint, “We are not in hurry to sell as prices are expected to increase further and we have limited material left to sell.” Overall, the ferro molybdenum market remained optimistic, supported by constrained supply and expectations of continued firm prices in the near term.
Amid rising ferro molybdenum costs, a leading Indian stainless steel manufacturer also raised its 316/316L (CR & HR Finish) prices by INR 10,000/t ($105/t) exw effective 13 May.
Outlook
Based on existing market conditions, ferro molybdenum prices in the coming days are likely to go up further.
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