- Tight molybdenum supply, lifts SS 316 tags
- Price hike may not sustain amid weak demand
India’s leading stainless steel coil manufacturers raised prices of 300-series products, effective 6 June 2025, driven by a sharp increase in ferro molybdenum (FeMo) prices. Prices of 316 grade hot-rolled coils (HRCs) and cold-rolled coils (CRCs) were increased by INR 4,000/tonne (t) ($46/t).
This price adjustment comes even as LME nickel prices remain stable at around $15,500/t.
BigMint’s benchmark assessment placed stainless steel 316 series hot-rolled coils (HRCs) at 321,000/t, while 316 CRCs stood at INR 329,000/t, both ex-Mumbai.
According to market participants, domestic prices of SS 316 HRCs and CRCs are expected to rise in the coming week, as the recent price hike by the major coil producer has yet to be fully absorbed by the market.
Ferro molybdenum prices in India surged by INR 55,000/t ($641/t) w-o-w to INR 2,655,000/t ($30,947/t) exw. The rally is attributed to a rebound in both domestic and international demand.
In tandem, molybdenum oxide prices also strengthened, further supporting the uptrend in grade 316 stainless steel prices.
The molybdenum market is experiencing firm sentiment globally, with tightening availability and robust demand supporting prices. On the London Metal Exchange (LME), molybdenum prices climbed up by $1.15/lb w-o-w to $21.61/lb, underscoring the bullish trend.
China leads regional price gains: In China, ferro molybdenum (Mo:60%) prices increased by RMB 2,000/t ($278/t) w-o-w to RMB 247,500/t ($34,354/t) exw Inner Mongolia. The price rise is linked to a tight supply of molybdenum concentrate, with environmental protection measures and production restrictions in key producing regions limiting raw material availability. As a result, Chinese smelters have maintained a strong willingness to raise prices.
Global market trends: divergence between Asia, West
Globally, spot prices of molybdenum oxide powder remained under pressure, supported by strong Asian demand and firm pricing. Market participants highlighted that the tight supply of molybdenite concentrate and declining oxide inventories, following increased trading activity, continued to support the Asian market’s strength.
In contrast, the European market has been more focused on ferro molybdenum, with several steel mills making inquiries. However, buying interest for oxide powder in Rotterdam remains subdued. Meanwhile, prices of Mo:70% in the US and Europe edged up by $2,000/t w-o-w to $52,000/t and $53,000/t, respectively.
Outlook
Despite continued weak demand in the stainless steel flat segment — particularly for 300-series material — the recent surge in ferro-molybdenum prices and subsequent price hikes by major coil producers are expected to push domestic market prices up slightly by INR 2,000-3,000/t. However, this increase may be short-lived due to prevailing demand trends, and the raw material situation will need to be closely monitored going forward.
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