India: Ferro molybdenum prices edge lower amid stagnant market conditions

• Domestic inquiries remain low for 2nd straight week
  
  
• Chinese offers edge down on price pressure from mills
  
  

Indian ferro molybdenum prices inched down by INR 10,000/tonne (t) ($118/t) this week, in comparison to the previous assessment on 13 November. Prices remained largely stable, as the global and domestic markets did not experience any major variations.

As per BigMint's assessment on 20 November, ferro molybdenum in India stood at INR 2,561,000/t ($30,345/t) exw. No spot trades were recorded this week.

Market insights

Domestic market remains firm: The domestic market was steady this week. A key Maharashtra-based producer informed BigMint, "The market did not see any major movements this week. Inquiries remained minimal for the second consecutive week this month."

Prices of 316 series stainless steel HRCs and CRCs were unchanged w-o-w at INR 322,000/t ($3,816/t) and INR 331,000/t ($3,923/t) exw-Mumbai respectively, reflecting stable dynamics in the end-user segment.

Imported molybdenum oxide rates to India were also stable w-o-w at $21.8-21.9/pound (lb) as compared to $22/lb in the week before.

Global prices record marginal drop: Prices in China (Mo:60%) edged down by RMB 1,000/t ($138/t) w-o-w to RMB 241,000/t ($33,279/t) exw-Inner Mongolia. Although demand in the Chinese market was decent, there was some price pressure from steel mills, which quoted low bids due to the weaker steel market and adequate inventories of ferro molybdenum.

In Europe and the US (Mo:70%), prices fell marginally by $0.4/kg w-o-w each to $51/kg and $52/kg, respectively. Additionally, on the London Metal Exchange (LME), a slight w-o-w drop of $0.16/lb was seen, with prices settling at $21.89/lb on 19 November.

Outlook

Prices in the coming days are expected to be steady, barring some variations, owing to stability in stainless steel tags, along with limited movements in the global ferro molybdenum market.