India: Ferro molybdenum offers increase tracking global price recovery

Indian ferro molybdenum (Mo:60%) prices increased by INR 100,000/t w-o-w. Price hike was driven by the global price increase, with a significant impact seen in China.

As per SteelMint's assessment on 25 October, Indian ferro molybdenum prices stood at INR 2,625,000/t exw-Nagpur on 60% pro rata basis. Around 20-22 t of deals were finalized in the price bracket of INR 2,600,000-2,650,000/t.

Factors contributing to price increase

Positive global outlook: Ferro molybdenum prices in China increased by RMB 37,000/t ($5,058/t) to stand at RMB 231,500/t ($31,644/t) ex-Inner Mongolia. Increased costs of molybdenum concentrate and oxide helped to raise the prices. Because of the market's instability, raw material suppliers traded material with increased caution. As a result, the number of transactions was restricted. The unveiling of steel tenders in China and South Korea also contributed to the price increase.

Domestic prices in USA (Mo: 70%) and South Korea (Mo: 60%) remained stable w-o-w at $62/kg and $64/kg, respectively.

On the other hand, prices on the London Metal Exchange (LME) platform dropped $0.49/pound w-o-w to $19.59/pound on 24 October.

Uptick in domestic trades: There was a surge in domestic demand last week, which allowed producers to raise the prices. For bulk bookings, discounts were offered and small quantities were sold at regular rates. They are also hopeful that this trend will continue in the coming days.

Outlook

The gradual increase in domestic demand has contributed to price increases. However, London Metal Exchange (LME) prices will decide the direction of the market in the upcoming days.