India: Ferro molybdenum prices maintain stability as sellers hold offers firm

Indian ferro molybdenum prices showed a slight decrease, edging down by INR 5,000/t ($59/t) w-o-w as compared to the previous assessment on 27 November, 2024. Prices were steady as the majority of producers kept their offers firm despite some negotiations from buyers.

As per BigMint's assessment on 4 December, ferro molybdenum prices in India were INR 2,544,000/t ($30,043/t) exw on a 60% pro rata basis. Around 16 t of trades were reported to BigMint last week within the price range of INR 2,550,000-2,552,000/t ($30,114-30,138/t) exw.

Market summary

Domestic: A key domestic producer informed BigMint: "There's some price pressure from the buyers' side but sellers are resisting lower offers, with INR depreciation being the primary reason."

Hence prices have remained stable. Another seller said, "We have taken orders with supplies scheduled for three months at a fixed agreement price. At the moment, it is more feasible for us and it will shield us from market volatility."

Imported molybdenum oxide prices remained stable w-o-w at $21.3-21.6/lb.

Global scenario: In China, ferro molybdenum (Mo:60%) prices fell by RMB 5,000/t ($687/t) w-o-w to RMB 234,000/t ($32,170/t) exw-Inner Mongolia. Bids from end users were fewer due to weak sentiments in the steel market and ample inventory levels which weighed on prices.

There was a slight drop in prices in other regions as well - a $0.2/kg w-o-w drop to $50/kg in Europe (Mo:70%) and $0.4/kg w-o-w drop to $51/kg in US (Mo:70%). Reports indicated that market had slowed down ahead of Christmas and New Year holidays.

On the London Metal Exchange (LME), prices stood stable w-o-w at $21.52/lb on 3 December.

Outlook

Considering current market conditions and slight decline in global and domestic prices, we may see some downward pressure on prices in the days ahead. However, a sharp decline is less likely.