India: Ferro molybdenum prices edge lower, sharp fall less likely

• Producers wary of quoting higher offers
  
  
• Marginal hike observed in global prices
  
  

Ferro molybdenum in India inched down by INR 20,000/t ($241/t) w-o-w in comparison to the previous assessment on 21 February. Prices are known to fluctuate on a daily basis and this adjustment in prices can be considered as stable.

Indian ferro molybdenum prices were assessed at INR 2,410,000/t ($29,063/t) exw-Nagpur on a 60% pro rata basis, according to BigMint's assessment on 28 February.

Weekly market roundup

Domestic market analysis; insights from a major producer: A prominent producer was reported as saying few days ago, "For Chile origin, molybdenum oxide rates are coming in at around INR 2270/kg ($27/kg) exw. Offering a higher rate would be pointless because there is little demand in the domestic market."

As a result, there was no significant movement in the domestic market and prices stayed rangebound. Additionally, no significant deals were concluded in the previous week.

Global price trends from key regions: A small increase in prices was observed globally, with prices in China (Mo:60%) rising RMB 1,500/t ($208/t) w-o-w to RMB 222,000/t ($30,836/t) exw-Inner Mongolia. Furthermore, prices increased by $2/kg w-o-w both in South Korea (Mo:60%) and USA (Mo:70%), settling at $49/kg and $60/kg, respectively.

According to a buyer from western India, rates of imported material from Thailand was coming at around INR 2,350,000/t ($28,328/t).

Meanwhile, prices in Europe (Mo:70%) saw a minor drop of $0.1/kg w-o-w, reaching $48.35/kg.

Also, on the London Metal Exchange (LME) platform, prices experienced a w-o-w increase of $0.21/pound, reaching $20.35/pound on 27 February.

Outlook

Considering the current market sentiments, prices are likely to hold steady within the existing range, with slight variations.