- Firm oxide costs support Indian prices
- Chinese prices rise RMB 3,000/t w-o-w
Indian ferro molybdenum (Mo: 60%) prices remained stable w-o-w, increasing by INR 29,000/t ($302/t) to INR 4,357,000/t ($45,433/t) exw. Despite expectations of a price decline among some market participants, spot prices remained firm, supported by higher global prices and firm molybdenum oxide costs. Around 34 t of deals were captured last week in the range of INR 4,250,000-4,500,000/t ($44,318-46,925/t) exw.
Market summary (10-15 September)
Global market remains firm but cautious: In China, ferro molybdenum prices increased by RMB 3,000/t ($447/t) w-o-w to RMB 344,000/t ($51,256/t) exw-Inner Mongolia amid firm market.
The market is supported by tight domestic molybdenum concentrate supply, limited imported raw-material inflows and a firm international oxide market. Fresh steel mill procurement activity supported inquiries, while downstream buyers remained focused on just-in-time purchases and resisted higher prices, limiting spot transactions.
The broader global molybdenum market remained firm but cautious, with rising oxide prices and strong seller resistance despite thin trading activity. Material below prevailing levels was increasingly difficult to secure, reflecting limited availability. However, spot activity slowed across Asia and Europe following the recent restocking rally, while softer oxide offers and limited buyer urgency pointed to a consolidation phase. The stronger concentrate tender also failed to lift oxide prices, indicating weaker near-term buying momentum.
According to the International Molybdenum Association (IMOA), discussions at its recent conference in the US indicated expectations of tighter global molybdenum availability and potentially tighter material supply in the coming days, which could provide further support to prices.
In Europe, ferro molybdenum prices edged up slightly to around $78/kg, remaining at elevated levels amid limited liquidity and higher offers.
LME molybdenum futures remained broadly stable, declining marginally by $0.37/lb w-o-w to $33.75/lb on 15 September.
Indian market remains supported by firm oxide costs: Indian ferro molybdenum prices remained firm despite expectations of a decline among some market participants. Imported molybdenum oxide prices increased by $0.30/lb w-o-w to $33.55/lb CNF India, continuing to provide cost support to domestic offers.
India’s finished stainless steel market remained largely steady, supported by tight raw-material availability and firm alloy costs, particularly for 316 grades. A leading stainless steel producer raised 316L HR and CR prices by INR 3,000/t ($31/t)effective 12 September, marking its second revision this month. J4 HR and CR prices increased by INR 1,500/t ($16/t), while 204Cu and 202-AU grades rose by INR 2,000/t ($21/t). Other grades, including DD and SDM, also saw revisions. However, cautious buying amid volatile nickel prices limited aggressive restocking.
Outlook
Indian ferro molybdenum prices are expected to remain stable to firm, supported by higher oxide costs, tight global availability and firm stainless steel prices. However, cautious buying and expectations of lower prices could limit gains.
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