India: Ferro molybdenum prices decline amid market uncertainties

Indian ferro molybdenum prices fell by INR 65,000/t w-o-w as most of the participants were unsure of the market dynamics. There were also reports of panic selling as demand was limited which reduced prices.

As per SteelMint's assessment on 29 November, Indian ferro molybdenum prices stood at INR 2,135,000/t exw-Nagpur, on 60% pro rata basis. Around 20 t of deals were finalised within the price bracket of INR 2,140,000-2,200,000/t.

Market summary

Panic sales: The domestic prices have been falling for past 3 weeks with the major reason being unstable demand. This created an atmosphere of panic amongst few sellers and they sold material at ongoing or lower offers.

Global scenario: Ferro molybdenum (Mo:60%) prices in China saw an uptick of RMB 13,000/t ($1,838/t) w-o-w to stand at RMB 201,000/t ($28,414/t) exw-Inner Mongolia. The steel mills were the main drivers of the demand increase.

With a slight decline of $0.3/kg and $0.5/kg w-o-w, respectively, prices in Europe (Mo:70%) and South Korea (Mo:60%) both stayed stable at $44/kg. In Europe, some traders kept less stock because the prices for immediate purchases were not good. This shortage of available goods might keep the prices higher in future.

Prices on the London Metal Exchange (LME) platform were $17.17/pound on 28 November, experiencing a slight increase of $0.30/pound w-o-w.

Outlook

According to sources, the market is showing signs of recovery, with a rise in inquiries. If demand continues to improve, prices may see an increase in the weeks ahead.