- Weak stainless demand keeps market under pressure
- China demand supports global molybdenum prices
Indian ferro molybdenum (Mo:60%, 10-100 mm) prices edged down a little by INR 40,000/t ($424/t) w-o-w to INR 4,095,000/t ($43,410/t) exw-India. Limited deals of around 15 t in last week and weak stainless steel demand led to slight drop in the prices.
Market summary (11-16 June)
Slow stainless demand weighs on ferro molybdenum: India’s ferro molybdenum market remained largely stable despite a slight decline in prices, as overall market fundamentals showed little change. Trade prices during the week were reported in the range of INR 4,085,000-4,120,000/t ($43,304-43,675/t) exw. However, limited trading activity and weak demand from the stainless steel sector continued to weigh on sentiment, resulting in softer prices.
Stainless steel buyers adopted a cautious approach amid continued nickel price volatility and uncertain market conditions. Demand across both flat and long products stayed subdued, resulting in limited fresh bookings. Most mills focused on clearing existing orders and offering discounts to improve sales and reduce inventories. At the same time, the availability of 316-grade stainless steel remained tight due to higher alloy costs and limited production, providing some support to prices despite the overall weak market sentiment.
Global market trends: In China, ferro molybdenum (Mo:60%) prices rose by RMB 8,500/t ($1,258/t) w-o-w to RMB 327,500/t ($48,465/t) exw-Inner Mongolia. Recent auctions of molybdenum concentrate in Henan stabilized ore prices and increased procurement costs for smelters, leading to firmer spot prices. Demand also remained steady as several steel mills continued to issue ferro molybdenum tenders, helping sustain market activity. Limited processing margins reduced smelters’ willingness to sell at lower prices, tightening spot availability. Strong overseas molybdenum prices and expectations of higher demand from the semiconductor sector also improved market sentiment.
In Europe, prices (Mo:70%) stayed steady w-o-w at $71/kg. Market sentiments, however, remained subdued, with weak buying interest and limited spot trading activity. Lower offers and expectations of a future price correction kept buyers cautious, while the approaching summer holiday period is expected to further reduce market liquidity and trading volumes.
Molybdenum futures on the London Metal Exchange went down marginally by $0.22/lb w-o-w to $30.81/lb on 16 June.
Outlook
India’s ferro molybdenum market is expected to remain range-bound in the coming week. Weak stainless steel demand and slow trading activity may continue to limit price gains, while firm raw material costs and strong Chinese market sentiments are likely to provide downside support. Overall, prices are expected to move within a narrow range, driven mainly by need-based buying.
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