India: Ferro molybdenum prices dip as stainless steel faces subdued demand

• Production cuts reported in stainless steel sector
  
  
• Financial year end, falling Chinese offers keep Indian prices under pressure
  
  

Indian ferro molybdenum prices fell by INR 41,000/t ($494/t) w-o-w as compared to the previous assessment on 13 March. Due to the conclusion of the financial year approaching and unfavorable sentiments in the stainless steel market, prices decreased as demand for the material remained low.

Indian ferro molybdenum prices were at INR 2,365,000/t ($28,467/t) exw-Nagpur on a 60% pro rata basis, as assessed by BigMint on 20 March. In the range of INR 2,290,000-2,365,000/t ($27,565-28,467/t), around 30 t of trades were concluded.

Weekly market summary

Domestic market trends: Prices of stainless steel increased lately, primarily as a result of rising LME nickel costs. However, inquiries remained lower for this sector as buyers were more inclined towards imported material. Henceforth, two significant producers of stainless steel announced production reductions of roughly 35% and 30%, respectively.

Also as the conclusion of the financial year came near, fewer transactions contributed to the price decrease.

China prices fall, stability across other regions: Ferro molybdenum (Mo:60%) prices in China declined by RMB 3,000/t ($417/t) w-o-w, reaching RMB 220,000/t ($30,559/t) exw-Inner Mongolia. Prices in South Korea (Mo:60%) fell slightly by $0.5/kg w-o-w to $49/kg. Meanwhile, prices in Europe and the US remained stable w-o-w.

With a minor w-o-w decline of $0.33/pound to $19.93 on 19 March, prices on the London Metal Exchange (LME) platform remained stable as well.

Outlook

BigMint estimates prices to stay range-bound in the coming days, with significant fluctuations unlikely.