- Chinese prices rise RMB 4,000/t ($595/t) w-o-w
- Buyer caution limits spot market transactions
Indian ferro molybdenum (FeMo) prices remained stable w-o-w at INR 4,359,000/t ($45,772/t) exw on 25 August. Firm global prices, particularly in China, along with tight availability of molybdenum oxide continued to provide support to the domestic market. However, elevated prices kept buyers cautious, resulting in limited spot transactions during the week.
Market updates (20–25 August)
Global market: Chinese ferro molybdenum prices increased by RMB 4,000/t ($595/t) w-o-w to RMB 344,000/t ($51,182/t) exw-Inner Mongolia. Higher prices in the upstream market led producers to raise their offers, while sellers holding spot material were unwilling to sell at lower prices. This also increased enquiries from traders looking to secure material.
However, buyers remained cautious at higher price levels. Steel mills continued to purchase only limited quantities and did not show any major buying interest. As a result, while prices moved up quickly, actual deals remained limited.
Overall, the market was supported by strong seller sentiment and higher upstream prices, but cautious steel mill buying kept trading activity slow.
In Europe, ferro molybdenum prices remained largely stable at around $76/kg, with limited fresh liquidity despite indications of improving end-user interest.
LME molybdenum futures also remained broadly steady, rising marginally by $0.19/lb w-o-w to $33.59/lb on 25 August.
India market: Indian ferro molybdenum prices remained supported by firm international prices and elevated raw material costs. Imported molybdenum oxide prices were stable w-o-w at around $33.61/lb, keeping domestic producer offers largely unchanged.
Despite firm offers, buyers continued to adopt a cautious approach, preferring to cover only immediate requirements rather than build inventories at elevated price levels. This limited the volume of spot deals concluded during the week.
Higher ferro molybdenum costs are also feeding into stainless steel pricing. A leading Indian stainless steel producer raised prices of 316-grade hot-rolled (HRC) and cold-rolled (CRC) products by INR 4,000/t ($42/t) , effective 25 August. This is the latest in a series of price hikes for the grade this month.
Outlook
Indian ferro molybdenum prices are likely to remain elevated in the coming week, supported by firm Chinese prices and tight molybdenum oxide availability. However, buying interest could remain subdued as consumers resist chasing higher offers.
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