India: Ferro molybdenum prices firm amid steady market conditions

• Stability persists in both global prices, LME futures
  
  
• Reports of production cuts in stainless steel sector emerge
  
  

While there was a minor decrease of INR 14,000/t ($168/t) from the prior assessment on 3 April, Indian ferro molybdenum prices stayed steady w-o-w. Prices remained range-bound as they had been over the previous few weeks owing to unchanged sentiments in global as well as domestic market.

Indian ferro molybdenum prices were at INR 2,337,000/t ($28,099/t) exw-Nagpur on a 60% pro rata basis, according to BigMint's assessment on 10 April. In the price range of INR 2,275,000-2,360,000/t ($27,353-28,375/t), fewer deals were reported previous week.

Weekly market dynamics

Price consistency in domestic market: Prices on the domestic market stayed constant due to the moderate levels of demand. "The prices have been range-bound and look to be stable at current levels only," a producer told BigMint.

Furthermore, a major producer of stainless steel reported around 35% reduction in production due to lower demand, but they anticipate that the industry would pick up speed following the Indian general elections.

Global price trends: Ferro molybdenum (Mo:60%) prices in China showed a bit of improvement, rising by RMB 7,000/t ($968/t) w-o-w to RMB 216,000/t ($29,860/t) exw-Inner Mongolia. The increase in bid prices from steel manufacturers could be the cause of this price increase.

Prices in the US (Mo:70%) and South Korea (Mo:60%) stayed constant w-o-w at $58/kg and $47/kg, respectively. Prices in Europe (Mo:70%) decreased by a slight $0.3/kg w-o-w to $47/kg.

The London Metal Exchange (LME) platform likewise saw stable pricing, with a minor w-o-w decline of $0.23/pound to $19.58/pound on 8 April.

Outlook

Based on market sentiments and trends in recent weeks, BigMint predicts minimal fluctuations in pricing in the upcoming days. While slight variations may occur, overall prices are anticipated to remain stable.