- Rising Chinese prices drive global molybdenum market
- LME molybdenum surges to nearly two-year high
Indian ferro molybdenum prices witnessed an increase of INR 63,000/t ($723/t) as against the previous assessment on 13 August. Prices went up amid strong global and domestic demand along with LME futures prices almost touching a 2-year high.
Ferro molybdenum prices in India were INR 3,043,000/t ($34,942/t) exw-India, as per BigMint’s assessment on 20 August. Last week saw conclusion of around 135 t of deals in the domestic market in INR 3,000,000-3,090,000/t ($34,449-35,482/t) exw.
Market highlights (14-19 August)
Increase in Chinese prices and demand: Ferro molybdenum (Mo:60%) prices in China went up by RMB 7,000/t ($975/t) w-o-w to RMB 281,500/t ($39,193/t) exw-Inner Mongolia. On the supply side, lower domestic ore grades and stricter environmental regulations constrained new molybdenum production capacity and some mines were under maintenance.
On the demand side, stainless steel and special steel production increased. Steel procurement stayed steady, and demand from sectors such as new energy and defence supported the market.
Meanwhile, in the US and Europe (Mo:70%), prices inched up by $2/kg w-o-w to $58/kg and $57/kg, respectively.
LME prices climb to 2 year high: On the London Metal Exchange (LME), molybdenum futures rose $0.85/lb w-o-w to $24.72/lb on 19 August, reaching a nearly two-year high.
Ripple effect boosts Indian market: Good global demand, especially from China, supported the ferro molybdenum market last week. The ripple effect was visible in India too where sellers raised their offers in line with the rise in LME molybdenum prices. Steady consumption trends further boosted higher trading volumes last week, reflecting firm market sentiment and sustained buying interest.
Outlook
With some domestic offers and trades close to INR 3,100,000/t (35,597/t) exw levels, prices in the coming days might see an uptick.
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