India: Ferro molybdenum prices rise amid positive global sentiments

• Demand increases in China
  
  
• LME futures prices rise
  
  

Indian ferro molybdenum prices increased by INR 50,500/tonne ($601/t) w-o-w compared to the previous assessment on 28 August, driven by increased demand in the global market, particularly from China.

As of 4 September, BigMint's assessment indicates that ferro molybdenum prices in India stood at INR 2,547,500/t ($30,341/t) on an ex-works Nagpur basis, calculated on a 60% pro rata basis. Smaller quantity trades were reported within the range of INR 2,520,000-2,530,000/t ($30,013-30,132/t) exw last week.

Weekly market activity

Global effects on domestic market: Prices in the Indian domestic market are primarily influenced by global pricing trends and demand. Although inquiries remained limited in the domestic sector, a surge in demand from China helped drive prices higher.

Imported molybdenum oxide prices to India also increased slightly w-o-w to $21.2-21.5/lb, compared to $20.9-21/lb previously.

Last week, a producer told BigMint: "The ferro molybdenum market is on an uptrend, and I expect it to rise even further. So, as of now, I'm not very keen on taking any orders."

Worldwide price patterns: Ferro molybdenum (Mo:60%) prices in China rose by RMB 3,000/t ($422/t) w-o-w to RMB 241,000/t ($33,886/t) exw Inner Mongolia. The price increase was supported by firm demand, as molybdenum miners remained unwilling to lower their prices.

Outlook

Given the current market conditions, prices are expected to maintain an upward trend in the coming days, although a sharp increase is unlikely.