Molybdenum News Center

China now accounts for around 31% of global molybdenum demand and its growth rates continue to outpace those in other countries, Rosskill said.

"The principal engines of growth will be increased use of stainless and other steels containing molybdenum in process, power and desalination plants, in oil and gas production and distribution and in motor vehicle components," Rosskill said in a statement about its new report.

It said the increased use of molybdenum bearing steels, high performance alloys and catalysts, along with robust growth in Brazil, Russia, India and China and elsewhere in South America, "will ensure growing future demand for molybdenum.

Rosskill noted that around 7% of stainless steel production contains molybdenum, with 316 series -- the most widely used moly-bearing stainless grade in medium level corrosive environments -- containing between 2% and 3%.

Rosskill noted that global demand for molybdenum bounced back from the global economic recession, growing by just over 11% in 2010 and a further 9% in 2011.
MINE CAPACITY SUFFICIENT TO MEET DEMAND UNTIL 2015

In 2012, mine capacity in primary molybdenum is sufficient to meet demand and supply is likely to show a surplus over the next three years, Rosskill said. It said the primary molybdenum mines were the first to respond to the recovery in demand in 2010. But, in 2011, growth in output of byproduct molybdenum from copper mines outpaced the growth from primary mines.

Rosskill lists around 60 new projects and expansions that could potentially produce molybdenum, yielding an additional 240,000 mt/year. This indicates "long-term mine supply is assured."

Around 33% of the new projects identified are located in North America, 28% in Central and South America and 10% in China.

"In the next two years byproduct output is likely to grow at a higher rate, but from 2014 new Chinese molybdenum-only projects will redress the balance," the consultancy said.

Insufficient roasting capacity has been a bottleneck in the past, noted Rosskill. But additional capacity has been installed and further additions are under construction in Chile, China and the US, by Codelco, Molymet, China Molybdenum and JDC.

LONGER-TERM PRICE PROSPECTS STABLE

The longer-term price prospects for molybdenum appear stable, given adequate, existing mine capacity, the report said. A factor supporting prices in the marketplace is the expected growth in demand of some 60,000 mt/year of demand in the years to 2016. It also said that several new projects are likely to be delayed.

"Production costs in excess of $12/lb in the large Chinese molybdenum-only mining industry, probably provide an effective floor on prices."

In the current market, the prospects for molybdenum oxide prices point to further weakening. Prices declined close to $1/lb last week. The Platts daily dealer molybdenum oxide assessment fell to $11.00-11.30/lb Tuesday from $11.10-11.30 on Monday, with bids seen at around $10.85 and $10.90, but no clear evidence of anything being transacted below $11.

 

More molybdenum product: http://www.molybdenum.com.cn
Tel: 0592-5129696 Fax：0592-5129797
E-mail:  This email address is being protected from spambots. You need JavaScript enabled to view it.
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com