India: Ferro molybdenum prices rise on sustained supply challenges

• Mineral output declines, especially in Chile
  
  
• Global prices remain stable
  
  

Ferro molybdenum prices in India increased w-o-w by INR 59,000/t ($708/t) in comparison with the previous assessment on 22 May 2024. Prices increased as raw material prices moved up due to limited supplies globally.

Indian ferro molybdenum prices were assessed at INR 2,740,000/t ($32,888/t) exw-Nagpur on a 60% pro rata basis, as assessed by BigMint on 29 May. However, as per sources, demand remained at moderate levels last week and no trades were reported.

Market highlights

Global supply squeeze: Last week, the market was affected by the global molybdenum oxide shortage. There have been reports of decreased production from miners, especially in Chile. According to reports, molybdenum oxide landed costs in India were approximately INR 2,600,000/t ($31,208/t) which raised the finished material prices.

A domestic producers recently told BigMint, "We have concluded smaller quantity deals and will close bigger ones soon." Additionally, he informed, today's prices have reached up to INR 2,770,000/t ($33,249/t).

Rise in stainless steel prices: Prices in the domestic stainless steel industry increased on 17 May, primarily due to an 11% w-o-w rise in LME nickel prices. The availability of nickel ore from Indonesia was limited. Furthermore, a major domestic producer increased prices of all grades on the same day as a result of rising raw material costs.

Firm prices globally: China's prices for ferro molybdenum (Mo:60%) were consistent w-o-w at RMB 250,000/t ($34,505/t) exw-Inner Mongolia. The domestic Chinese market was still experiencing a shortage of molybdenum concentrate.

Price stability was also noted in other key markets, such as the US, Europe, and South Korea.

The London Metal Exchange (LME) saw consistent prices as well, with a slight $0.80/pound w-o-w increase to $22.69/pound on 28 May.

Outlook

Given the current market conditions, prices are expected to remain within a range and may experience slight fluctuations in either direction.