India: Ferro molybdenum market sees price uptick amid limited raw material supply

• Supply of molybdenum oxide remains tight
  
  
• LME prices experience w-o-w increase
  
  

Price update

Ferro molybdenum prices in India increased by INR 42,000/t ($504/t) w-o-w as of the previous assessment on 29 May. Limited availability of molybdenum oxide at higher prices, along with good demand, have supported domestic ferro molybdenum prices.

According to BigMint's assessment on 5 June, Indian ferro molybdenum prices were at INR 2,782,000/t ($33,377/t) exw-Nagpur on a 60% pro rata basis.

Market activity

• Limited availability of moly oxide: The molybdenum oxide market is tight with limited spot availability and traders reluctant to sell small quantities at low prices. Supported by strong mine bidding prices, bulk market enterprises are cautious and have adopted a wait-and-watch strategy. Moly oxide prices in India are hovering at around INR 2,600,000/t on a 60% pro rata basis. Meanwhile, good demand has also led producers to increase their offers.
  
  
• India's stainless steel market: Stainless steel finished prices in India have slightly decreased this week compared to the previous week due to a drop in LME nickel prices. Despite this, subdued demand has made producers hesitant to book ferro molybdenum at higher prices, protecting ferro molybdenum prices from sharp hike.
  
  
• Global market overview: Ferro molybdenum (Mo:60%) prices in China decreased slightly by RMB 1,000/t ($138/t) w-o-w to RMB 249,000/t ($34,358/t) exw-Inner Mongolia. The pace of steel mill procurement has slowed, and a small amount of bulk goods are being sold below the price.

  Prices in the US (Mo:70%) and South Korea (Mo:60%) also inched up by $1/kg w-o-w to $62/kg and $52/kg, respectively. Furthermore, prices on the LME showed a minor increase of $0.44/pound w-o-w to $23.13/pound on 4 June.

  
  
  

Outlook

The international molybdenum price remains strong, fuelled by a heated global market. Despite this, the domestic molybdenum market shows high consolidation with weak trading and low transaction volumes due to a fierce price game between buyers and sellers. Downstream users, cautious of high prices, are purchasing mainly on demand, resulting in a continuing stalemate in the domestic ferro molybdenum market.