India: Ferro molybdenum prices hit 2-month low amid supply-demand mismatch

• Panic sales in the domestic sector
  
  
• Prices fall in China and the US, LME futures stable
  
  

Ferro molybdenum prices in India witnessed a w-o-w decline of INR 62,000/t ($739/t) as compared to the previous assessment on 31 July. Prices reached a 2-month low as per data maintained by BigMint due to panic sales in the market along with limited inquiries. International prices have also fallen. There is no demand from Europe due to summer holidays. Meanwhile, China also has no demand, which is affecting the Indian market as well.

As per BigMint's assessment on 7 August, ferro molybdenum prices in India were at INR 2,499,000/t ($29,775/t) exw-Nagpur on a 60% pro rata basis. Approximately 45 tonnes (t) of deals were reported to BigMint last week within the price range of INR 2,450,000-2,525,000/t ($29,191-30,085/t) exw.

Market summary

Panic sales anticipating further fall: In the domestic Indian market, inquiries were limited over the previous few weeks. And with the continued scenario, producers had to lower the offers in order to liquidate their stocks. Further market trends were also not clear. As a result, panic sales were also reported.

In reference to it, a producer recently informed BigMint, "There's less demand and excess supply in the market currently. But I believe that by this month's end, the below-cost panic selling will neutralise."

Also as per sources, the imported molybdenum oxide prices were hovering at around $21.6-21.7/lb.

Global price scenario: Ferro molybdenum (Mo:60%) prices in China fell by RMB 4,000/t ($557/t) w-o-w to RMB 235,000/t ($32,724/t) exw-Inner Mongolia. Reports indicated that the material bidding from steel mills slowed down due to higher prices of molybdenum concentrate and unclear market outlook.

Prices in the US (Mo:70%) dropped by $6/kg w-o-w to $56/kg. While in South Korea (Mo:60%), it remained stable w-o-w at $51/kg.

Prices on the London Metal Exchange (LME) platform also remained stable with a minor uptick of $0.67/pound to $21.48/pound on 6 August.

Outlook

If the existing market scenario persists, prices are likely to undergo corrections in the days ahead.