India: Ferro molybdenum prices increase on firm demand, rising input costs

• Tight oxide supply pushes prices higher
  
  
• Chinese prices firm post holidays
  
  

Indian ferro molybdenum (Mo 60%, 10-100 mm) prices moved up by INR 75,000/t ($789/t) in comparison to the assessment on 29 April. Prices increased as raw material costs remained firm and demand stayed steady.

As per BigMints assessment on 6 May, ferro molybdenum prices in India were INR 3,755,000/t ($39,505/t) exw-India. Close to around 60 t of deals were concluded last week within a price range of INR 3,680,000-3,775,000/t ($38,716-39,716/t) exw.

Market recap (30 April 5 May)

Prices rise on demand support: Ferro molybdenum prices moved up due to rising imported molybdenum oxide (Mo: 57% min) prices, which edged up to $28.2/lb from $28/lb last week. The increase, coupled with continued tight availability of oxide, prompted sellers to raise their offers.

Additionally, steady downstream demand provided support, helping sustain the uptrend in prices and reinforcing firm market conditions.

Global price trends: Ferro molybdenum (Mo:60%) prices in China were stable w-o-w at RMB 300,000/t ($43,922/t) exw-Inner Mongolia. The domestic market was stable after the holidays, with prices holding at high levels and only minor changes. Trading activity was moderate, as sellers kept firm offers while buyers purchased mainly for immediate needs. Overall transactions remained limited, and the market adopted a wait-and-watch approach. In Europe as well (Mo:70%), prices were unchanged w-o-w at $65/kg. Overall, strong demand and higher raw material costs supported the global market.

Molybdenum futures on the London Metal Exchange inched up by $0.25/lb w-o-w to $28.26/lb on 5 May.

End user market updates: Stainless steel prices for 316 grade HRC went up by INR 10,000/t ($106/t) w-o-w to INR 390,000/t ($4,125/t) exw-Mumbai. Nickel prices surged due to tight production quotas in Indonesia, which limited supply and supported the upward trend. As a result, stainless steel grades of both 304 and 316 saw price increases. The rise was sharper in 316, driven by a significant shortage of 316 scrap in the market, which pushed prices higher.

Outlook

Considering current the market scenario and sustained demand, ferro molybdenum prices in the coming days are likely to stay rangebound.