As a minor metal, molybdenum is prone to rapid price fluctuations; in the past this had generated huge returns on investment. Molybdenum was one of the last metals to feel the effects of the economic downturn, but has failed to match the recovery experienced by many metals since the start of the New Year.
Vancouver’s Avanti Mining announced the updated resource estimates for its Kitsault moly project are 54 million tonnes at 0.112% Mo in the measured category, 153 million tonnes at 0.088% Mo in the indicated category, and 26 million tonnes grading 0.069% Mo in the inferred category. Craig J. Nelsen, Avanti president and CEO, stated: This new [...]
Chinese imports of molybdenum concentrate and molybdenum oxide nearly doubled from January to February as overseas sellers stepped up competition with Chinese producers. This did little, although, to correct prices.
Velocity Minerals Ltd., a company dedicated to the acquisition and development of advanced or high grade molybdenum mineral properties. Velocity presently owns the mineral rights to two molybdenum projects in northern British Columbia (Mt. Haskin and Cassiar Moly) and is actively pursuing other properties in North America and internationally.
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When economic growth resumes, there will be a critical shortage of strategic metals. The rapid collapse in metal’s prices has forced many miners to mothball operations; when demand for these metals resumes, there will be a lag time for production online. This means that as quickly as prices collapsed, we can expect an upswing with more impetus.
The steel sector has been deeply impacted by the global economic climate; with an approximate 50% decline in production. Moly, as an important alloy, is following suit.
Molybdenum prices took a considerable tumble in the fourth quarter of ’08, falling from USD 30 per pound in September 2008 to USD 9.50 at the end December 2008. Despite unprecedented demand for the metal, molybdenum prices crashed as crisis permeated the financial markets.
As the shock waves spread around the global economy; many analysts are starting to hedge their bets on when a recovery will start. In their Global Metal’s Report released this week, Morgan Stanley gave their take on the near future for the molybdenum market.
In April 2007, when the Sprott molybdenum fund was created, the minor metal was on a fast track. When the fund was created the metal was trading consistently at US $25 per lb; after the ETF was up and running moly cruised to US $ 40 per lb.
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