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|China Molybdenum Q1-2012 Trade Balance; Export Surplus|
|= Exports 5.2 million pounds; Imports 3.6 million pounds =|
Imports of molybdenum during the Q1 (January - March) of 2012 were 3.63 million pounds, while exports were 5.20 million pounds in a continued export-surplus trend from the preceding year. Both were much lower than those in the same quarter of 2011, i.e. imports were down by 43.4% and exports were down by 25.5%.|
In the past years, exports from China tended to bulge in the first half of the year under the export quota system, but it does not seem to be the case this year, most probably due to the stagnated global market of molybdenum. As an example, the average of the prices for molybdenum oxide in the Q1 of 2012 was US$15.34/lb, much lower than US$18.11/lb in the Q1 of 2011, and the current price, as of mid-May, is even lower at US$13.90/lb.
Based the production costs in China together with the high rate (20%) of the export tax, the price in the global market during the Q1 of US$15 - 16/lb was not attractive for the exporters in China, discouraging them to export, while there seems little merit in imports to China, as the country is self-sufficient with molybdenum.
It was in 2009 when international molybdenum price dipped to US$9 - 10/lb and Chinese steel mills eagerly tried to import molybdenum rather than buying it from domestic suppliers.
|last modified : Fri 25 May, 2012 [10:54]|