As the use of molybdenum becomes diversified because of its use in solar panels, the price correlation between Silver and Moly is closing. The diversification of the uses for moly is beneficial as the price is not dependent solely on steel consumption.
Recently molybdenum mining companies stock prices have fallen on fears that Chinese steel demand may be waning, a sign of a slowing recovery.However, most analysis of world markets has steel demand rising through 2012. How will this speculation effect the stock price of profitable molybdenum companies?
Thompson Creek Metals and General Moly released first quarter results. While the price of molybdenum has been steadily increasing the two companies have posted a loss for the quarter. However, long term outlook for the two remain strong based on increased production and rising prices. They may be a bargain for investors looking to capitalize on long term molybdenum forecasts.
After the Chinese agreed to fund two Molybdenum companies last week, Thompson Creek Minerals and Antofagasta PLC are looking for financing for new projects to capitalize on surging molybdenum prices.
There is a `little storm brewing' in moly. In the third week of January, traders came in and bought up a lot of material, which caused some supply tightness. Now traders are in a position to push prices higher, state analysts.
Moly has been priced too low as compared to other minerals already traded in the futures market. The added sauce to the coming moly price surge will be a sure-fire winner for speculators. You in?
Thompson Creek Metals has had an upgrade and a downgrade. With eight analysts having cut their target, is it time to bail out of the stock?
One of the world's largest publicly traded, pure molybdenum producers, Thompson Creek TSE: TCM, today announced changes to its 2009 estimates for molybdenum sales, molybdenum production and cash production costs.
Government spending will spark a recovery in steel demand towards the end of the year; but its mark on the molybdenum market will be limited. Demand for molybdenum in China likely will rise 6 percent in 2009, then slip to 52,800 tonnes in 2010 before growing again in 2011.
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.
Tuesday, July 20, 2010