India: Ferro molybdenum prices drop amidst market resistance

• Prices decline in China, stability in LME futures
  
  
• Imported molybdenum oxide prices at $23/lb levels
  
  

Indian ferro molybdenum prices fell by INR 73,000/t ($873/t) w-o-w in comparison to the previous assessment on 19 June 2024. Prices dropped as there was some resistance at higher offers both in the domestic and international markets.

As per BigMint assessment on 26 June, Indian ferro molybdenum prices stood at INR 2,747,000/t ($32,866/t) exw-Nagpur on a 60% pro rata basis. Around 40 t of deals were concluded last week within the price range of INR 2,770,000-2,775,000/t ($33,141-33,201/t).

Weekly market activity

Limited acceptance of higher offers: Owing to the supply shortage and shipment delays of molybdenum oxide over the previous few weeks, offers had risen from producers to INR 28,50,000-29,00,000/t exw. But acceptance from buyers wasn't seen at those levels particularly in domestic market which lowered the prices.

The supply of molybdenum oxide was also impacted by reports of gas leak issues in South Korea, although it hasn't been confirmed yet. In response, a producer from India told BigMint,"The jump was sentimental based on it. As soon as the news faded, the price returned to its June beginning levels."

Marginal correction in imported moly-oxide offers: Sources informed that the price of imported molybdenum oxide into India has inched down marginally w-o-w to around $23/lb.

Drop in Chinese ferro molybdenum prices: Prices for ferro molybdenum (Mo:60%) in China decreased by RMB 7,000/t ($963/t) w-o-w to RMB 244,000/t ($33,578/t) exw-Inner Mongolia. The steel market wasn't doing well, so they remained cautious while obtaining raw material.

Prices in South Korea (Mo:60%) and US (Mo:70%) both saw a slight drop of $0.5/kg w-o-w to $52/kg and $62/kg, respectively.

With a little w-o-w decrease of $0.16/pound to $23.3/pound on 25 June, prices on the London Metal Exchange (LME) platform remained stable.

Outlook

According to BigMint's estimate, prices are expected to stabilize within current levels with slight upward or downward variations.