Trash to Treasure: The Business of Extracting Molybdenum From Mine Tailings
Canada's Amerigo Resources, operator of one of the longest-running tailings reprocessing facilities, is looking to expand in the near future.
Canada's Amerigo Resources, operator of one of the longest-running tailings reprocessing facilities, is looking to expand in the near future.
A brief overview of molybdenum price developments, supply and demand, and significant market movers.
With molybdenum prices not set to exceed $20/lb until 2020, market movement has remained minimal over the last month.
China’s increase in the resource tax on molybdenum, equivalent to a 4-fold gain per ton is in full effect. The increase, aimed at conserving the country’s resources and curbing pollution could create a need for more imports of moly.
Uncertainty remains for the 2012 molybdenum market following the volatility of 2011.
Investors looking to capitalize on the build-up of nuclear power don’t have to rely on uranium projects alone, as massive amounts of molybdenum will be needed for nuclear power reactors to strengthen the steel alloys used in their construction.
While steel production has remained strong in China and North America, the price of molybdenum has remained weak. China became a net importer of molybdenum in 2010, however, on the year the country is a net exporter of the metal. This trend however may be reversing.
Keeping track of the steel market is key for investors with an eye on molybdenum.
The volatility of world markets over the last week has some commodites on a downward trend. Molybdenum, however, is bucking the trend with some impressive gains over the last week.
The price of molybdenum on the LME is down to its lowest level since July of 2010. Weak demand for stainless steel and the summer slowdown in the production of steel are factors. This could represent a bottom for the price as supporting factors come into play in the coming months.
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