@topwonHere are 2 articles that I posted back in Nov10. They...

@topwon

Here are 2 articles that I posted back in Nov10. They will support Crystals73 statements. Please mate, if you read, you learn. Read very carefully the second last paragraph of the second article in bold. I like your enthusiasm topwon, but we cannot all give you the answers....DYOR

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Alternative Moly: Energized
9/11/2010 2:01:52 PM | Thom Calandra

Copper? A 28-month high as stockpiles shrink. Is molybdenum next? The $16/pound price is advertised on the London Metals Exchange, where it trades along with cobalt as a futures contract. Moly oxide goes into solar panels, electrodes, plates and most things stainless steel particularly a six percent to seven percent mix into high-heat nuclear plant pipelines and equipment.

Aside from speculation that China ministers might declare moly a strategic resource and restrict import, demand for the element almost surely can be linked to demand for silver in those solar panels and other high-heat, nuclear or electrical devices.

Industry reports by consulting firms earlier this year forecast MO price rising 55 percent into 2012. Moly is useful as an anti-corrosive agent for energy devices and the rising number of nuclear power plant projects around the world.

In a fresh report, say George Topping and Michael Scoon at investment bank Stifel Nicolaus: We expect the rationale would be to squeeze the generally energy intensive and polluting mom and pop moly mines out of business. These are thought to produce about 50 percent of Chinese domestic production. As jobs are also a key driver of Chinese policy, these would likely end up in the hands of larger mining entities, but some production would be lost. China has a similar program for coal and iron ore, which sees low quality producers being shut down/consolidated. If true, this supports our $20/lb moly forecast.

Some moly mines are in development or in production but there are not many of em. Not many pure moly equities exist in the world.

Metals Week Average: US$16.15/lb
As of Nov. 19, 2010

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The international price of molybdenum oxide has rallied to a level of USD 16 per lb of Mo after an interval of 6 months. Dealers offered on the end of last week molybdenum oxide at USD 16.00 to USD 16.30 per lb of Mo and ferromolybdenum at USD 40 to USD 41 per kg of Mo.

The international price of molybdenum oxide had once risen to a high level of USD 18 per lb. of Mo in April of 2010 but, as China transformed to the country to export molybdenum with net quantity from May shipment, the parties concerned had felt a repugnance for this change of the position in China, having exploded the established theory and the price of molybdenum oxide turned to a weak tone. The oxide price bottomed out by a lower level than USD 14 per lb of Mo as seen in July but a power to revive the price was still not strong and the international price of molybdenum oxide continued to move on a sluggish level of USD 15 per lb of Mo.

China is the country, having shared 37% of molybdenum production in the world, but the Central Government of China has decided to enforce from 2001 the regulations for whole quantity of molybdenum ore to be mined in China (the contents are not announced yet) and therefore, the circumstances surrounding molybdenum are moving to change largely from the beginning of November. Molybdenum prices in 2011 are anticipated to fluctuate on a firm tone and, from this point of view, molybdenum prices in domestic market of China have risen to a considerable extent.

The domestic price of ferromolybdenum (with Mo 60% min.) in China has risen from the beginning of November to a high level of CNY 150,000 per tonne by a sharp increase of CNY 6,000 to CNY 10,000 per ton. The Central Government of China has professed to preserve natural resources and, when molybdenum production in China is restricted, it is strongly forecasted that China will transform again from 2011 to the country to import molybdenum with net quantity in the same case as that in 2009.

For a reference, it has been estimated that China would have produced 163 million lbs. of molybdenum on content base in 2009 and will produce 180 to 190 million lbs of Mo in 2010.

(Sourced from The TEX Report)

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