India: Ferro molybdenum prices decline as stainless steel demand remains sluggish

Indian ferro molybdenum prices decreased by INR 40,000/t w-o-w as buying activities were limited primarily due to the continuous downtrend in the stainless steel sector.

According to SteelMint's assessment on 13 December, Indian ferro molybdenum prices stood at INR 2,140,000/t exw-Nagpur, on 60% pro rata basis.

Weekly market recap

Muted activity in the stainless steel sector: There has been limited demand from the downstream market for stainless steel which has kept this sector on the downtrend for the past few months. Due to the ongoing holiday season in the major supplying countries, global trade also remained on the lower side.

Global price consequences: Ferro molybdenum (Mo:60%) prices in China saw a w-o-w decline of RMB 1,500/t ($211/t) to stand at RMB 205,000/t ($28,878/t) exw-Inner Mongolia. Additionally, prices in the US (Mo:70%) saw a minor w-o-w decrease of $0.25/kg to $56/kg.

However, prices in Europe (Mo:70%) and South Korea (Mo:60%) both remained steady w-o-w at $44/kg.

Also, the price on the London Metal Exchange (LME) platform was $17.33/pound on 12 December, a nominal drop of $0.6/pound w-o-w.

Outlook

Considering the current state of the market, it is expected that prices will remain range-bound with minor fluctuations.