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China's Imports Of Molybdenum In Aug. - Sep. / 09 Deepen Tendency To Decrease
= Balance On Imports And Exports Of Moly By China In Jan. - Sep. / 09 Had An Excess Of Imports
According to the customs-statistics released in China, a balance on imports and exports of molybdenum by this country in the first 9 months (January - September) of 2009 has still indicated an excess of the imports but a trend to import molybdenum into China is in the direction to decrease from July. The total quantity of molybdenum imported into China in January - September of 2009 was 51,806 tons on material base, corresponding to 62.98 million lbs. on Mo content base.

On the other hand, China exported 7,291.6 tons of molybdenum on material base, corresponding to 9.22 million lbs. on Mo content base, in the first 9 months of 2009. Consequently, a balance on trade of molybdenum by China in the period had an excess of 53.76 million lbs. on Mo content base in the imports. This trend had continued throughout the 9 months since January of 2009, when China suddenly turned to the country to import molybdenum, but a scale of molybdenum imported into China has changed to decrease from July. The quantities (on material base) of molybdenum imported by China in the recent 3 months were <> in July : 7,152 tons, <> in August : 6,120 tons and <> in September : 5,067 tons.

Since China has turned to the country to import molybdenum from January of 2009, this country has been importing molybdenum on a scale of 6 million lbs. per month of Mo content on the average mainly from such western sources as Chile, and so on. Major molybdenum mines in the western world have positioned China as a stable and important market to export molybdenum, following main West European countries, the USA and Japan, and are prepared to negotiate with China on exports of molybdenum.

Therefore, the movements of molybdenum prices to be purchased by China for imports are starting to put a substantial influence on the molybdenum market and, during a period of from the end of July to the beginning of August when molybdenum prices reached a peak and China commenced to decrease their imports of molybdenum, the international prices of molybdenum products turned to fall. The price of molybdenum oxide in an early part of November was US$10.50 per lb. of Mo with a deep feeling to bottom out but, in the course of the last 3 months, molybdenum prices had fallen on a straight way and an extent of having fallen molybdenum prices reached 43%.

In anticipation of a decline of the demand for molybdenum in 2009, molybdenum mines have set up in advance the structure to decrease their molybdenum production and, consequently, the world output of molybdenum in the calendar year (January - December) of 2009 has been strongly estimated to be 420 million lbs. on Mo content base, which will decrease by 12.5% compared to that (480 million lbs.) in the preceding calendar year of 2008. However, the consumption of molybdenum by the western countries in 2009 has been presumed to have a decline of 30% from that in 2008 and the oversupply of molybdenum caused by a strong mutual pressure was originally forecasted. Nevertheless, owing to the unexpected demand to import molybdenum into China, molybdenum prices are able to keep the levels to be payable for its production cost. For a reference, the cost to produce molybdenum at major mines in the western world is estimated to be in the range of US$8 - 10 per lb. of Mo.

The quantities of molybdenum imported and exported by China in January - September of 2009 were as per the table shown below ;
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last modified : Tue 17 Nov, 2009 [10:05]
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