India: Ferro molybdenum prices drop on improved supplies, fewer inquiries

• Market sees supply-demand imbalance
  
  
• Global prices witness slight increase
  
  

Indian ferro molybdenum prices dropped by INR 64,000/t ($766/t) w-o-w compared to the previous assessment on 10 July 2024. Prices decreased as the market saw fewer inquiries and there was adequate supply of material.

Indian ferro molybdenum prices were INR 26,66,000/t ($31,905/t) exw-Nagpur on a 60% pro rata basis, according to BigMint's assessment on 17 July. Around 45 t of deals within the INR 2,625,000-2,745,000/t ($31,414-32,850/t) exw price range were reported last week.

Factors affecting prices

Excess supply lowers prices: There were fewer inquiries since ferro molybdenum was in lower demand in the domestic market. Thus, the market became oversaturated amid excess supplies. As a result, the majority of sellers adopted price-cutting strategies to secure the limited interest that was available. They also had to ensure that they had enough liquidity to stay operational.

Furthermore, the under-pressure stainless steel market and falling nickel prices have also made buyers cautious about booking ferro molybdenum, which has negatively impacted demand.

"The international market is currently at around $32,311/t levels but since demand is lower in India, prices have decreased," a producer source recently told BigMint.

According to market watchers, India's import prices for molybdenum oxide were stable w-o-w at $22.6-22.8/lb, compared to $22.8-22.9/lb the week before.

Global price patterns: Ferro molybdenum (Mo:60%) prices in China rose by RMB 1,000/t ($138/t) w-o-w to RMB 239,500/t ($33,014/t) exw-Inner Mongolia. Steel mills in Zhejiang, Liaoning, Anhui and Hunan were in the market to procure material. However, influence of international prices and the exchange rate of the US dollar against the RMB, along with sluggish steel prices and complex global economic situation, has made the market cautious about future trends.

In South Korea (Mo: 60%) and the US (Mo: 70%) prices rose by $0.5/kg w-o-w to $52/kg and $62/kg, respectively.

Prices on the London Metal Exchange (LME) remained stable w-o-w at $22.95/pound on 16 July.

Outlook

Prices have shown variations lately owing to changing market dynamics and, in the near term, the same trends are expected to continue.