THe below sounds huge!Also China is now starting to import moly,...

THe below sounds huge!
Also China is now starting to import moly, where previously they were self suffient.


Friday, January 22, 2010

LME listing of molybdenum heralds big changes
by Metals Place

In the past years, the quantity of molybdenum consumed by steel companies had shared nearly 60% of the whole demand and was a main factor to influence on molybdenum prices.

The demand for molybdenum from steel companies has still kept a large weight but, at the opportunity to list molybdenum on LME from February of 2010, new composition of molybdenum is expected to be built up.

The molybdenum dealing for three-month futures at LME is scheduled to commence from February 22nd 2010 but its function will need a certain time to search. Therefore, it has been viewed that, when the parties concerned could have well known about the molybdenum dealing at LME, molybdenum price quoted on LME will exhibit a power to influence on the market from 2011.

The open pricing at LME should bring a transparency in molybdenum business and the consumers concerned are thought to have been convinced by this open pricing at LME.

The demand for molybdenum in China is forecasted to put a substantial impact on molybdenum prices in 2010, following the same case in 2009.

China has suddenly changed in 2009 from the country to export molybdenum as continued for more than 10 years to that to import molybdenum.

In line with the strengthened policy to preserve natural resources as adopted by the Central Government of China, molybdenum has been still maintained as the objective material to regulate its exports. The Government said to follow this policy in 2010 and to keep the measure to allocate quantities for specified exporters.

In view of the actual quantity of molybdenum exported by China in 2009, the exports of Chinese molybdenum seem to put a slight impact on the world market of molybdenum.

Market price of molybdenum oxide fluctuated to a considerable extent in 2009. The movements of price for molybdenum oxide in 2009 were USD 18.30 per pound of Mo as a higher side (recorded in August) and USD 7.70 as a lower side (recorded in April) and a differential of these two prices came to USD 10.60 per pound of Mo.

This large fluctuation on price of molybdenum oxide was affected by the Lehman shock arisen in September of 2008.