India: Ferro molybdenum prices decline amid global and LME market trends

• Price reductions in both China and Europe
  
  
• Reports of panic selling in the Indian domestic market
  
  

Ferro molybdenum prices in India fell by INR 112,000/t ($1,348/t) w-o-w in response to the decline in global prices, especially in China and LME futures.

As per SteelMint's assessment on 17 January, Indian ferro molybdenum prices stood at INR 2,348,000/t ($28,261/t) exw-Nagpur, on 60% pro rata basis.

Weekly market highlights

The price dynamics of ferro molybdenum in China (Mo:60%) dropped by RMB 3,000/t ($421/t) w-o-w, reaching RMB 217,500/t ($30,532/t) ex-works-Inner Mongolia. Decreased molybdenum concentrate costs, mills operating with reduced profits, and increased market engagement from traders contributed to the lower prices. Meanwhile, prices in Europe (Mo:70%) declined by $3/kg w-o-w, settling at $47/kg.

In the domestic market, producers maintained sufficient inventory, allowing them to make profits even with lowered prices. There were also reports of panic selling among some producers.

Furthermore, the price on the London Metal Exchange (LME) platform decreased by $0.50/pound w-o-w, reaching $19.95/pound on 16 January.

Outlook

As per sources, stable demand is expected ahead which will keep prices mostly steady, with slight variations owing to inquiries from stainless steel mills.