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India: Ferro molybdenum prices rise amid global supply limitations

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Noble Ferro Alloys

BigMint Bureau

54 Reads

5 Feb 2025, 18:28 IST

India: Ferro molybdenum prices rise amid global supply limitations

SAIL-BSP books 50 t at INR 2,519,000/t ($28,903/t)

Rise in demand from Europe pushes up prices

Indian ferro molybdenum prices witnessed an increase of INR 20,800/t ($239/t) w-o-w as compared to the previous assessment on 29 January. A rise in demand was seen, majorly from European buyers which pushed up the global as well as domestic Indian prices. Additionally, supplies were also restricted in Asia due to the Lunar New Year holidays in China.

As per BigMint's assessment on 5 February 2025, ferro molybdenum prices in India were at INR 2,538,800/t ($29,130/t) exw-India on a 60% pro rata basis. Around 25-t of deals were reported to BigMint last week within the price range of INR 2,520,000-2,575,000/t ($28,914-29,545/t) exw.

Market overview

Quite Chinese market restricts supplies: China, which is the leading supplier of ferro molybdenum, lacked market movement over the previous week due to the Lunar New Year holidays. As a result, supplies were restricted in the Asian region and with rise in demand -- majorly from Europe, prices from sellers increased both globally and in India. This was evident in the trades as well, with around 25 t of material sold in the spot market at elevated offers.

Additionally, 50 t of material was also procured by SAIL-Bhilai Steel Plant (BSP) through reverse auction on 30 January 2025. The L1 price went at around INR 2,519,000/t ($28,903/t) exw on an LCNC basis, as per sources.

A domestic Indian seller was recently quoted as saying to BigMint, "Ferro molybdenum prices have jumped and so has ferro vanadium. We sold around 30 t ferro molybdenum at INR 2,575,000/t ($29,545/t) levels out of which 20 t was exported."

LME prices edge up: Prices on the London Metal Exchange (LME) platform inched up by $0.35/lb w-o-w to $20.68/lb on 4 February.

Stainless steel market dynamics: Stainless steel prices for 316 grade HRC remained steady w-o-w at INR 321,000/t ($3,674/t) exw-Mumbai. However, overall sentiments remained weak as need-based buying prevailed in the market. There was expectation of improvement in market sentiments post -Union Budget but demand is yet to pick up pace.

Outlook

The Chinese market will open in a few days and with its material circulation, prices are expected to stay within the current range, with some minor variations.