- Growing demand from Europe, China
- LME prices maintain stability
In comparison to the previous assessment on 15 May, ferro molybdenum prices in India experienced a rise of INR 61,000/t ($733/t) w-o-w. Prices increased as there were reports of material shortage across the globe which got boosted by the rise in demand.
Indian ferro molybdenum prices were at INR 2,681,000/t ($32,197/t) exw-Nagpur on a 60% pro rata basis, as per BigMint’s assessment on 22 May. In the previous week, around 10 t of material was sold within the price bracket of INR 2,650,000-2,690,000/t ($31,825-32,305/t).
Weekly market movement
Supply limitations, growing demand: Global markets experienced molybdenum oxide shortages, which restricted the availability of finished materials. As a result, prices increased in both the domestic and international markets due to a surge in inquiries, mainly from China and Europe.
“The market is bullish right now, but bulk deals at higher prices are yet to be concluded as the market needs few days to absorb these prices,” a well-known domestic producer told BigMint.
Global price trajectories: Ferro molybdenum (Mo:60%) prices in China increased by RMB 10,000/t ($1,410/t) w-o-w to RMB 250,000/t ($35,245/t) exw-Inner Mongolia. According to sources, a local mine in China recently sold molybdenum concentrate (50-50%) for around RMB 3,910/t ($551/t). Additionally, there was a shortage of molybdenum concentrate as well.
While prices in South Korea (Mo:60%) inched up by $0.3/kg w-o-w to $51/kg, they remained stable w-o-w in the US (Mo:70%) at $61/kg.
The London Metal Exchange (LME) saw little change in pricing w-o-w, with a $0.09/pound increase to $21.89/pound on 21 May.
Outlook
If this trend persists, we might see additional price increase in the coming days.
