India: Ferro molybdenum prices inch up on sustained global demand

• China's domestic prices edge up
  
  
• LME futures remain stable
  
  

Indian ferro molybdenum prices witnessed a rise of INR 12,500/tonne (t) ($149/t) w-o-w as compared to the previous assessment on 4 September. Prices increased as the global market saw a rise in inquiries.

As per BigMint's assessment on 11 September, ferro molybdenum prices in India were INR 2,560,000/t ($30,492/t) exw-Nagpur on a 60% pro-rata basis. Trades of approximately 30 t were reported to BigMint last week in the price range of INR 2,450,000-2,575,000/t ($29,181-30,670/t) exw.

Markets over the week

Global markets see demand support: Global demand was stable for the second consecutive week, majorly due to end-users in China. Domestic prices in China went up by RMB 1,000/t ($141/t) w-o-w to RMB 242,000/t ($34,019/t) exw-Inner Mongolia. Reports suggest that steel mills in Jiangsu, Sichuan, Fujian, and Hunan were seeking ferro molybdenum, and bulk quantity was traded at around RMB 240,000-245,000/t ($33,738-34,441/t) exw.

The rise in demand worldwide had an impact on the Indian domestic market as well, as seen in the trades last week. A producer was quoted as saying to BigMint, "Offers have increased post the molybdenum price hike in the European Union."

Prices of imported molybdenum oxide in India inched up slightly w-o-w to $21.6-21.7/pound (lb) against $21.2-21.5/lb in the week before.

Indian stainless steel mill hikes prices: Ferro molybdenum is mainly used in the production of 316 grade stainless steel. With the recent increase in ferro molybdenum prices, one of India's leading stainless steel producers raised its 316 grade prices by INR 3,000/t ($36/t).

Global prices remain largely stable: Prices globally were largely stable w-o-w. In Europe and the US (Mo:70%), they declined by $0.3/kilogramme (kg) w-o-w each to $52/kg and $53/kg, respectively.

Prices on the London Metal Exchange (LME) platform stayed steady, with a slight w-o-w increase of $0.17/lb to $21.64/lb on 10 September.

Outlook

In the upcoming days, prices are likely to stay within the current range with slight variations.