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.
CapitalVue reported that first half profits for Jinduicheng Molybdenum (SHA:601958) were down over the same period last year.
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.
Merchant Research & Consulting released research on the outlook for the global molybdenum market.
CommodityOnline reported that China is expected to be an important part of the molybdenum market over the next five years.
China Daily reported that a very large molybdenum deposit has been discovered in China.
Platts reported that increased demand for molybdenum pushed prices up this 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.
Platts reported that Linghai Hengtai intends to boost its ferromoly output by half.
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