India: Ferro molybdenum prices fall marginally in recent trades, fall in LME futures

• Panic sales to clear inventories keep Indian prices under pressure
  
  
• Chinese domestic prices remain stable w-o-w
  
  

Indian ferro molybdenum prices witnessed a w-o-w decline of INR 34,000/tonne (t) ($409/t) as limited demand prompted some market participants to engage in panic sales, anticipating a similar situation in the days ahead.As of January 24, SteelMint's assessment pegged Indian ferro molybdenum prices at INR 2,314,000/t ($27,834/t) exw-Nagpur, calculated on a 60% pro rata basis. During the previous week, transactions involving approximately 20 t were concluded within the price range of INR 2,295,000-2,300,000/t ($27,606-27,666/t).

Market highlights over the week

Panic driven sales amidst excess inventory: With limited inquiries in the domestic market, some producers chose to reduce their offers and proceed with sales. The presence of ample supplies in both finished products and raw materials prevented prices from experiencing an upward trajectory.

Global trends: Ferro molybdenum (Mo:60%) prices in China remained stable w-o-w and were at RMB 217,500/t ($30,666/t) exw-Inner Mongolia. However, the Chinese market is expected to become more active before the upcoming new year holidays.

Over the course of the week, prices decreased by $2/kg in South Korea (Mo:60%) and $1/kg in Europe (Mo: 70%).

Furthermore, the price on the London Metal Exchange (LME) platform saw a slight w-o-w decrease of $0.48/pound to $19.47/pound on 23 January.

Outlook

The daily fluctuations in ferro molybdenum prices are primarily driven by global market trends. Given the stable outlook of the global market, prices are likely to remain range-bound in the coming days, experiencing minor fluctuations.