- Prices decrease on few inquiries, enough inventory
- Government removes import duty on molybdenum oxide
Indian ferro molybdenum prices experienced a drop of INR 91,000/t ($1,087/t) w-o-w as compared to the previous assessment on 17 July. Prices decreased because there were still few inquiries and enough inventory.
Indian ferro molybdenum prices were at INR 2,575,000/t ($30,766/t) exw-Nagpur on a 60% pro rata basis, as per BigMint’s assessment on 24 July. Around 35 t of deals in the INR 2,500,000-2,620,000/t ($29,870-31,303/t) exw price range were reported to BigMint last week.
Market overview
Panic driven sales expecting further price drop: Producers were compelled to lower their offerings because the domestic market was still experiencing lower inquiries and there was an oversupply issue as well. A well-known manufacturer from the Maharashtra region told BigMint, “The market is currently panicking because there is less demand and people are afraid that prices will drop as well.”
Impact awaited on import duty removal on molybdenum oxide: A major development was observed at the Union budget yesterday, which included removal of import duty on molybdenum ores and concentrates from the previous 2.5%. India is totally dependent on imported raw materials, so price dynamics may change. However, its impact will be seen in the coming few months when freshly booked material will arrive.
According to sources, the price of imported molybdenum oxide last week was between $22.15-23/lb, compared to $22.6-22.8/lb the week before.
Global market dynamics: The price of ferro molybdenum (Mo:60%) in China dropped by RMB 1,500/t ($206/t) w-o-w to RMB 238,000/t ($32,705/t) exw-Inner Mongolia. The quotations from producers were a bit higher due to rise in molybdenum concentrate prices but due to its limited acceptance from steel mills, prices came down.
Prices in Europe (Mo:70%) decreased by a slight $0.7/kg w-o-w to $51/kg. According to reports, the majority of steel mills in Europe were either about to go for annual shutdowns or had already started.
With a minor w-o-w decline of 0.36/pound to $22.59/pound on 23 July, prices on the London Metal Exchange (LME) stayed stable.
Outlook
If the current trend persists, further corrections may occur in the coming days.
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