India: Ferro molybdenum prices inch down on slow buying
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- Subdued demand in stainless steel
- Chinese domestic prices edge up
Indian ferro molybdenum prices saw a slight drop of INR 14,000/t ($167/t) w-o-w in comparison to the previous assessment on 24 July. Prices largely remained stable as buying activities remained slow in the domestic market.
As per BigMint's assessment on 31 July, ferro molybdenum prices in India were at INR 2,561,000/t ($30,583/t) exw-Nagpur on a 60% pro rata basis. In the previous concluded week, no trades were reported to BigMint.
Market highlights
Cautious approach in market: The cautious approach continued to surround the domestic market which was the primary reason for no deals in the previous week. No other major movement was observed and offers from producers also stayed steady w-o-w.
Two of the buyers of ferro molybdenum informed BigMint, "We're having sufficient stocks so not in a hurry to buy now."
Weak demand in stainless steel sector: Stainless steel market has been subdued over the past few weeks and there was no improvement in the previous week as well. Majority of the buyers in this sector remained in wait-and-watch mode and as per sources, this scenario may continue in the near-term.
Global market trends: Ferro molybdenum (Mo:60%) prices in China inched up by RMB 1,000/t ($138/t) w-o-w to RMB 239,000/t ($33,066/t) exw-Inner Mongolia. As per sources, mining companies were not willing to lower prices and downstream purchases were mostly based on demand.
Prices in South Korea (Mo:60%) and US (Mo:70%) remained steady w-o-w at $51/kg and $62/kg, respectively.
Prices on the London Metal Exchange (LME) platform also stayed stable with a marginal w-o-w drop of $0.44/pound to $22.15/pound on 30 July.
Outlook
Prices have been fluctuating over the past weeks and in the coming days, same trend is expected to continue.
