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.
Thompson Creek Metals Co Inc reported that it is reducing mill capacity by 30 percent and will temporarily idle two mines this year due to poor market conditions. For full story, click here
Thompson Creek announced huge cut in its 2009 production forecast Tuesday of as much as 41%. The company plans to produce 20 to 24 million pounds of Molybdenum, down from the prior guidance of 31.5 to 34 million pounds. Chief executive Kevin Loughrey said: This is a unique time, because we’re not getting a confident [...]
Molybdenum exploration has been on a fast track this year, as a shortage in supply and an increase in demand have pushed prices of the alloying metal up and up. Until recently, moly has held stable despite all the challenges on Wall Street.
The molybdenum market is bracing for price increases in September on increased buying activity from stainless steel mills and mounting concerns over a consistent supply. The availability of ferromolybdenum remains tight as output falls at a number of major producers.
Thompson Creek’s molybdenum production rose 10.7% to 6.2 million pounds in the second quarter from 5.6 million pounds in the first quarter – for a total of 11.8 million pounds in the first half of 2008. For more information, click here
Thompson Creek Metals Company Inc. shares moved higher after CNBC’s Jim Cramer recommended the stock on the basis that there is a shortage of worldwide supply of molybdenum and the company is well poised to take advantage of rising molybdenum prices. For full story, click here
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