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.
Ken MacDonald Vice President of Business Strategy and CFO Erdene Resource Development discussed the factors controlling the current molybdenum market.
Japan will need massive amounts of steel to rebuild what the tsunami washed away. Infrastructure and new automobiles will pave the way for steel demand in the country. While the events in Japan are horrific and depressing, and may affect global markets for quite some time, the need for steel will likely use up a large portion of the surplus that is currently holding down the price of moly.
After low prices enticed China to become a net importer of molybdenum, surpluses built up may cause price stagnation in 2011. Steel demand is slated to grow in 2011, just at a slower rate than seen in the past few years.
U.S. miner General Moly Inc declared that it has seen the molybdenum market poised for a rebound with a pick up in demand growth and limited new supply sending prices to a peak in 2012. For full story, click here
Molybdenum prices have been moving steadily higher over the last month and are now approaching $10/lb, but any significant gains in the price will be curtailed by the threat of increased supply by producers, say analysts at New York-based Dahlman Rose & Co. For full story, click here
Chinese ferro-molybdenum offers declared that it has staged a recovery on the back of higher molybdic oxide import offers and limited supply from both the domestic and overseas markets. For full story, click here
Steelmakers will have to struggle in order to secure supplies of molybdenum, used to toughen the metal, in 2011 as the economic crisis spurs producers to shelve 100 million pounds of new supply. Chief executive Peter Akerley stated: We would be looking at somebody who would help with investing in the project through” supply agreements, [...]
An unscheduled shutdown at Chalk River Laboratories that supplies rods of molybdenum-99 could mean a shortage of medical isotopes. For full story, click here
An analyst reported that the quantity of molybdenum to be supplied in 2009 is forecasted to have an excess of 14 million pounds on an annualized base. The market also estimates that it will be necessary to reduce further molybdenum production in 2009 by 10 million pounds per annum. For full story, click here
Get our independent commentary on moly trends and companies delivered to your inbox.
