- BIS licence expiries restrict imports
- Chinese prices inch up w-o-w
Indian ferro molybdenum prices stayed largely stable last week, falling marginally by INR 1,000/t ($12/t) as compared to the previous assessment on 16 April. Prices held steady as the market operated at regular pace with no significant changes seen.
As per BigMint’s assessment on 23 April, ferro molybdenum prices in India were INR 2,552,000/t ($29,857/t) exw-India. Around 32 t of trades were heard last week within a price bracket of INR 2,495,000-2,575,000/t ($29,190-30,126/t) exw.
Market overview (17-22 April)
Expiry of BIS licences: As per market sources, imports of ferro molybdenum into India have stopped primarily from Thailand and South Korea as BIS licences have expired. An Indian buyer who usually prefers imported material informed BigMint, “Since imports have slowed down, we inquired in the domestic market and quotations are around INR 80,000/t ($936/t) higher than the landed cost of imports.”
Still not much of an impact was seen in prices as demand shifted mainly due to sufficient supplies in the domestic market.
Uptick in Chinese prices: In China, ferro molybdenum (Mo:60%) prices inched up by RMB 4,000/t ($547 /t) w-o-w to RMB 213,500/t ($29,197/t) exw-Inner Mongolia. The market witnessed a slight uptrend as domestic molybdenum concentrate supplies remained tight. Environmental protection measures are in place in major production hubs, resulting in reduced raw material availability.
Smelters actively supported prices, while stainless steel plants continued to operate at high rates. With April marking the traditional peak season, steel mills actively procured ferro molybdenum, pushing total bidding volumes past 9,000 t for April, including long-term agreements, reflecting robust market momentum.
Global prices steady w-o-w: Prices remained unchanged in other parts of the world. In the US and Europe (Mo: 70%), prices were largely steady w-o-w at $50/kg and $48/kg, respectively.
Additionally, on the London Metal Exchange (LME), prices stayed steady too, edging down a little by $0.08/lb w-o-w to $19.84/lb on 22 April.
Outlook
Since not much movement can be seen in the domestic and global markets at the moment, prices are likely to hold steady in the coming days, with slight variations likely.
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