Molybdenum Trade By China In First Half / 09 Still Had Excess Of Imports Over Exports = Peak Of Imports Was Over On Monthly Base, China Has Become Largest Country To Consume Moly When a balance on trade (imports and exports) of molybdenum by China in the first half (January - June) of 2009 is focused, China still had an excess of imports over exports. This pattern of trade on molybdenum is anticipated to remain unchanged for the time being.
Reflecting the steeply risen prices of molybdenum products in the international market, (1) the imports of molybdenum into China in the first half of 2009 were over its peak and decreased somewhat but China still imported 40.5 million lbs. on Mo content base in the first half of 2009, having kept a large share, and (2) on the other hand, China exported 700 tons in material of molybdenum oxide in June of 2009 and cargoes of Chinese ferro-molybdenum with Mo 60% min. had been sporadically seen in the international market but China exported molybdenum on a scale of 4.6 million lbs. on content base in the first half of 2009, having had a considerable decrease of 71% compared with that (16.1 million lbs.) in the same period of 2008. These matters were the features to be pointed out in trade on molybdenum by China in the first half of 2009.
As a matter of fact, in the first half of 2009, China imported 40.5 million lbs. on content base of molybdenum and exported 4.6 million lbs. on content base of molybdenum. Accordingly, China imported molybdenum on a scale of 6.75 million lbs. per month on the average in the first half of 2009, having put a substantial influence on the global supply situation of molybdenum.
Europe is the large market to consume molybdenum but, owing to a crisis of the monetary sector emerged from October of 2008, the actual demand for molybdenum in Europe has retreated to a large extent. On the contrary, China succeeded in the economic measures to stimulate their domestic demand in the first half of 2009 and, therefore, the production activities of steel and stainless steel in China had maintained the scale as seen in 2007 to 2008. Consequently, China has become comparatively the largest country in the world to consume molybdenum and, by taking into account of the assumed consumption (60 million lbs.) of molybdenum in the first half of 2009, it is not an unreasonable case that China imported 40 million lbs. on content base of molybdenum in the first half of 2009. The situation, which China imports molybdenum, has differed from an excess of nickel imports by China (caused an excess of nickel stocks with 100,000 tons).
Molybdenum producers in Chile and North America have acknowledged China as one of main markets to export molybdenum and will supposedly adopt the policy to continue hereafter their exports of molybdenum for China. Also, the Central Government of China has maintained the regulations for exports of molybdenum by means of imposing high duty on exports and allocating quantities for exports and, therefore, China will adhere to the constitution to import molybdenum. However, the international price of molybdenum oxide in the last 1 - 2 months had risen steeply and is approaching to the level of US$20 per lb. of Mo. There is a view in the market that the matter to increase imports of molybdenum into China will be entering into a turning point from this time. The total quantity of molybdenum to be produced in China varies depending on molybdenum prices but China supposedly produced 50 - 70 million lbs. per annum on content base of molybdenum in the last several years.
The quantities (on material base) of roasted molybdenum ore imported from main sources into China in the first half of 2009 were <> from Chile : 13,938 tons, <> from Mexico : 4,021 tons, <> from Netherlands : 2,231 tons, <> from USA : 1,954 tons and <> from Canada : 1,542 tons. The total quantity of roasted molybdenum ore imported from these 5 sources into China in the first half of 2009 had shared 88.8% of the whole.
Also, the monthly quantities of roasted molybdenum ore imported into China during March to June of 2009 were <> in March : 6,436 tons, <> in April : 6,301 tons, <> in May : 3,906 tons and <> in June : 5,146 tons. The total quantity of roasted molybdenum ore imported by China in the 4 months of March - June had shared 81.7% of the whole.
MOL Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
