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Molybdenum Prices Have Rebounded, After Having Broken Silence For 3 Months
= Domestic Prices In China Have Turned To Rise, USA Is Moving To Purchase Molybdenum
Market price of molybdenum oxide has turned to rise, after having broken a silence continued for about 3 months. On the end of last week, traders offered molybdenum oxide at US$13.50 per lb. of Mo as a normal level and at US$13.70 as a higher one. Price of molybdenum oxide fell to a lower level of US$10.50 per lb. of Mo on the end October of 2009 and, after that, continued on the level of US$11 by the end of last year. For a reference, the current price of ferro-molybdenum is US$32 - 33 per kg. of Mo, having risen by more than US$3 compared to that at the end of 2009.

The highest price of molybdenum oxide in 2009 was US$18 per lb. of Mo recorded on the 14th of August and, then, turned to fall but it is anticipated that price of molybdenum oxide will rebound to a level of US$15 in the course of time, corresponding to half of the extent as fallen, because actual cargoes of molybdenum oxide have been felt to be scarce. In order to cope with an expansion in production of crude steel, the USA is moving to purchase molybdenum.

The experts concerned have already pointed out since autumn of last year that, from the beginning of 2010, molybdenum prices will be in the direction to rise, and this view has been based on the matters, which price of molybdenum oxide is scheduled to be listed on LME from the 22nd February of 2010 and China will resume to purchase molybdenum. As a matter of fact, molybdenum prices in China have moved to rise from the beginning of 2010. It is marked to see how does this power connect with molybdenum dealing at LME by organized investors to be commenced from the 22nd of February.

The current price of ferro-molybdenum (on Mo 60% base) in domestic market of China has risen from CNY138,000 per ton to CNY142,000 (corresponding to US$20,294 - 20,882 per ton) by an increase of CNY10,000 per ton from that at the end of last year.

Molybdenum production by Codelco of Chile has shared 10% of the world output but the strike at their Chuquicamata mine has ceased by 2 days as a very short period but, from this case, the parties concerned have acknowledged the fundamentals, which the supply situation of molybdenum has tightened. Major molybdenum mines in the western countries have been reducing their molybdenum production from 2008 and concentrating their operations on an expansion of copper production. This basic tone had been maintained throughout the year of 2009.

The imports of molybdenum by China in the second half of 2009 were not so aggressive as that seen in the first half but China imported in November of 2009 <> roasted molybdenum ore : 2,735 tons (compared with 1,707 tons in October) and <> unroasted molybdenum ore : 1,078 tons (compared to 867 tons in October), both of which had increased from those in October. It is interested in knowing how many quantities of molybdenum have been concluded by a major molybdenum mine in Chile with Chinese steel companies for shipments in the calendar year of 2010. China has become a large and important country to import molybdenum from Chilean producer, following Japan.

For a reference, China has changed from 2009 to the country to import molybdenum on net quantity base and the quantities (on material base) of molybdenum ores imported by China in the calendar year (January - December) of 2009, which were estimated from the actual quantities imported into China in January - November of 2009, consisted of <> roasted ore : 47,500 tons and <> unroasted ore : 14,000 tons, having shared 16.5% of the world demand.
last modified : Mon 18 Jan, 2010 [11:01]
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