India: Ferro molybdenum prices correct on fewer inquiries on festive lull

Indian ferro molybdenum prices decreased by INR 128,000/t exw amid weak demand and Diwali holiday disruptions, driven by buyer awareness of delayed material arrivals in transportation.

According to SteelMint's assessment on 15 November 2023, ferro molybdenum (Mo:60%) prices were hovering at around INR 2,325,000/t exw-Nagpur on 60% prorate basis.

Factors affecting ferro molybdenum prices:

• Festival lull and panic selling impact ferro molybdenum prices: During the festival, business was slow in the local market. Buyers stocked up on materials ahead of time because they expected transportation issues during Diwali, a big Indian festival. On the other hand, sellers engaged in panic selling to manage cash flow pressures. The combined effect of sluggish demand and panic selling exerted downward pressure on ferro molybdenum prices.
  
  
• Global dip affects prices: The global market weakened, also impacted ferro molybdenum prices worldwide, including domestic offers. In China, ferro molybdenum (Mo:60%) prices dropped by RMB 23,500/t ($3,248/t) w-o-w, reached at RMB 189,500/t ($26,192/t) ex-works in Inner Mongolia. Meanwhile, molybdenum concentrate and molybdenum oxide prices also declined due to sluggish market sentiments.

  In Europe, prices for Mo:70% fell by $3/kg w-o-w, settling at $45/kg. While, prices for Mo:60% in South Korea remained stable at $45/kg.

  On November 14, the price on the London Metal Exchange (LME) platform was $17.6/pound, experiencing a minor drop of $0.21/pound w-o-w.
  
  
  

Outlook
Global sentiment is pessimistic due to weak global demand, although India maintains a steady demand. A clearer outlook will emerge after fresh bookings commence following the Diwali holidays.