India: Ferro molybdenum prices rise on global support

• Demand rises in global market
  
  
• Copper prices hit a two-year peak
  
  

Ferro molybdenum prices in India experienced an increase of INR 101,000/t ($1,210/t) w-o-w as compared to the assessment on 24 April. Rising ore prices were accompanied by an increase in enquiries from China, which helped to push up prices. There was also a surge in demand in the Asian and European markets.

As per BigMint's assessment on 1 May, Indian ferro molybdenum prices were at INR 2,496,000/t ($29,892/t) exw-Nagpur on a 60% pro rata basis. Last week, around 5 t of deals were reported within the price bracket of INR 2,490,000-2,495,000/t ($29,820-29,880/t).

Factors affecting prices

Impact of global market dynamics: In China, ferro molybdenum (Mo:60%) prices stood at RMB 232,000/t ($32,042/t) exw-Inner Mongolia. Offers were higher because steel factories, especially in the Jiangsu and Hebei regions, were more active in obtaining material. Along with Asia, demand was also observed in Europe (Mo:70%), where prices increased by $2/kg w-o-w to $49/kg.

Its effect was also felt in the domestic Indian market, contributing to price increase. As per sources, molybdenum oxide prices in India were at around INR 2,400,000/t ($28,742/t).

Copper, LME and geopolitical factors: Molybdenum is obtained as a by-product of copper mining worldwide, and copper prices recently reached a two-year high on the London Metal Exchange (LME) surpassing $10,000/t. Ferro molybdenum prices increased as a result of this and slight supply shortage.

Additionally, because of the continued geopolitical unrest, the supply chain was interrupted and market participants purchased material in anticipation of an uncertain future.

On 30 April, prices on the London Metal Exchange (LME) increased by $0.89/pound w-o-w to $20.78/pound.

Outlook

Given the prevailing market conditions, prices are anticipated to stay within current range, with minor fluctuations anticipated.