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.
Articles Tagged "price"
Molybdenum, which is used to strengthen steel, sold on the spot market at a monthly average of almost $33/lb during the first half of last year, and actually was as high as $33.50/lb in daily trading. But, the spot price slipped to $25 in the second half and continued falling earlier this year - bottoming around $8/lb in April. Analysts predict the price at $12/lb in a couple of months.
Molybdenum prices are currently hovering around the $9 per lb mark, a drastic decline from last Augusts’ high of $34. Molybdenum managed to hold its price point longer than other metals; but in the fourth quarter of 2008 the steel industry’s defeat sent molybdenum on a free fall.
China’s local molybdenum concentrate price further dropped this week to 1,600 yuan ($234) per mtu, from 1,650-1,700 yuan per mtu last week, on weak demand and the onslaught of cheaper imports. For full story, click here
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 Chilean government copper commission Cochilco says that prices for molybdenum will be at $11 per pound in 2009, down from $30/lb for most of last year. For more information, click here
The London Metals Exchange is launching cobalt and molybdenum futures contracts in 2009. The LME has orgainized a conference to discuss the markets and how the LME can be used to mitigate price risk management.
Since the end of 2008, the price of domestic ferromoly in China has been fluctuated above and below CNY 120,000 per tonne and the prices are expected to decline again. For full story, click here
Market price of molybdenum oxide in Q4 2008 had suddenly fallen steeply due to sudden and considerable shrink in global demand. For full story, click here
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.