- Domestic market stable but buyer interest weak
- China and Europe witness drop in prices
Indian ferro molybdenum prices witnessed a slight decline of INR 26,000/t ($293/t) as compared to the previous assessment on 24 September. This was primarily due to a drop in global and LME futures prices along with fewer inquiries in the domestic market.
As per BigMint’s assessment on 24 September, ferro molybdenum prices in India were INR 3,084,000/t ($34,744/t) exw-India. Around 15 t of deals were reported to BigMint last week within the price bracket of INR 3,050,000-3,150,000/t ($34,361-35,488/t) exw.
Market highlights (18-23 September)
Global prices decline: Ferro molybdenum (Mo:60%) prices in China fell by RMB 5,000/t ($70/t) w-o-w to RMB 281,500/t ($39,580/t) exw-Inner Mongolia. Demand from stainless steel mills was weak, so buyers were hesitant to purchase. Some sellers offered discounts to recover cash, and global market fluctuations also added pressure, pushing prices slightly lower.
In the short term, the ferro molybdenum market is likely to stay weak and unstable. The main reason is that stainless steel demand hasn’t improved much. Steel mills were still buying only what they need and weren’t ready to raise prices quickly. Prices may continue to fall slightly but are expected to stabilize soon.
In US and Europe (Mo:70%), prices came down by $1/kg w-o-w to $58/kg and $57/kg, respectively. Particularly in Europe, In Europe, activity was slow, and no deals were reported in the oxide powder market. Demand also remained weak after the summer holiday break.
Marginal drop in LME futures prices: On the London Metal Exchange (LME), molybdenum futures inched down by $0.33/lb w-o-w to $25.14/lb on 23 September.
Domestic market shows limited movement: Last week, the Indian domestic ferro molybdenum market remained largely stable. Seller offers eased slightly following a fall in global prices, while buying was limited as buyers anticipated further declines. The stainless steel market also stayed steady, with no major fluctuations, which helped keep ferro molybdenum prices largely stable. Overall, a cautious market sentiment prevailed, with sellers adjusting offers moderately and buyers waiting for more clarity before making significant purchases.
Outlook
Prices in the coming days are likely to stay within the current range with some fluctuations as domestic and global market seems largely steady.
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