India: Ferro molybdenum prices hold firm amid moderate demand

• Prices supported by firm raw material costs
  
  
• Buyer resistance limits European market activity
  
  

Indian ferro molybdenum (Mo:60%, 10-100 mm) prices stayed largely steady, edging up a little by INR 5,000/t ($53/t) w-o-w to INR 4,100,000/t ($43,324/t) exw. Prices held steady as market fundamentals stayed same along with regular demand.

Close to around 35 t of deals were reported to BigMint last week in the price bracket of INR 3,955,000-4,155,000/t ($41,792-43,905/t) exw-India.

Market recap (18-23 June)

Market firm on cost support: India's ferro molybdenum market remained largely stable during the week, with prices supported by firm imported molybdenum oxide costs, which stood at around $31.2/lb CNF India. Market activity was moderate, and regular demand from stainless steel and alloy steel producers helped maintain price stability. Buyers continued to procure material based on immediate requirements, while sellers largely maintained their offers in line with raw material costs. Some suppliers were primarily focused on dispatching previously booked orders, which limited fresh spot market activity.

Overall, balanced demand, steady raw material prices, and controlled availability helped keep the ferro molybdenum market stable during the period.

Soft demand keeps stainless steel trades limited: India's stainless steel market remained largely subdued last week, with market participants maintaining a cautious approach amid declining nickel prices and persistent global uncertainties. Trading activity was limited as both buyers and sellers closely monitored price trends and broader market developments. Stainless steel mills were largely focused on executing previously booked orders and clearing existing commitments, resulting in reduced emphasis on securing fresh business. Meanwhile, buyers preferred to stay on the sidelines and procure only for immediate requirements, expecting greater clarity on price direction. Overall, weak buying interest and cautious market sentiment kept fresh booking activity at relatively low levels during the week.

Weak global sentiments: In China, ferro molybdenum (Mo:60%) prices inched down by RMB 5,000/t ($736/t) w-o-w to RMB 322,500/t ($47,493/t) exw-Inner Mongolia. China's market remained weak due to limited trading activity and cautious sentiment. Recent steel mill tenders were concluded at lower prices, putting pressure on smelters' margins and reducing their willingness to sell. At the same time, tight availability of molybdenum raw materials due to mine inspections and supply restrictions provided some support to prices. Traders remained cautious amid weak market confidence and avoided building inventories. Demand from the steel sector stayed sluggish, while orders from high-end industries were insufficient to improve overall market conditions. Most transactions were limited to long-term contracts only.

In Europe, prices (Mo:70%) remained stable w-o-w at $71/kg, but spot market activity was muted, with only a few deals reported and buyers showing resistance to prevailing offer levels. The rejection of bids at offered prices highlighted continued negotiations between buyers and sellers. Overall, the global market was characterized by weak trading volumes and cautious sentiment, while stable prices provided some support amid the lack of strong demand.

Molybdenum futures on the London Metal Exchange increased slightly by $0.47/lb w-o-w to $31.28/lb on 23 June.

Outlook

India's ferro molybdenum market is expected to remain stable in the coming week, supported by firm imported oxide costs and steady domestic demand. However, cautious global sentiment and weak trading activity in key overseas markets may limit price gains. Overall, prices are likely to move within a narrow range, with raw material costs providing support.