Mining Outlook: Molyexp Releases Report: Unusual Stock Accumulation In China Will Be Key To Molybden

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3rd September 2009, 04:40am - Views: 932






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MEDIA RELEASE PR35888


Mining Outlook: MolyExp Releases Report: Unusual Stock Accumulation in China Will Be 

                Key to Molybdenum Market Evolution


SANTIAGO, Sept. 3 /PRNewswire-AsiaNet/ --


-

According to Pablo Bascur, MolyExp managing partner, the incipient recovery 

of moly prices is not a response to an increase in consumption, and that China 

                  will play a key role in upcoming quarters 

 

    The incipient recovery of molybdenum prices observed during 2Q09 does not respond

to a true increase in consumption. According to Moly Market Outlook, a study

conducted by the consultancy firm MolyExp, the enormous and unusual accumulation of

molybdenum inventories in China during 1H09 will play a key role in moly prices in

future quarters. 


    Pablo Bascur, managing partner of MolyExp, explained, "For example, 

Chile's total molybdenum production for 2008 is equivalent to the amount of 

the excess of stock accumulated in 1H09. It is interesting to note that in 

this period, 40% of Chilean molybdenum oxide exports were shipped to China, 

while no molybdenum oxide was shipped to that country in 1H08." 


    The report highlights the prominent role played by China in the molybdenum 

market, in which it went from being the primary global producer in 2008, with 

exports of 25 million pounds, to becoming a net importer in 1H09, acquiring 35 

million pounds from Western operations and absorbing all the excess stock in 

the rest of the world. 


    "The tight market in the West has doubled the prices between April and 

August of this year, despite the fact that for the first half of 2009, the 

apparent consumption in the West decreased over 40% with respect to the same 

period in 2008," Bascur concludes. 


    Regarding future prices behavior, Bascur says that depending on how those 

stocks are managed, "We may see a high level of volatility over the next few 

quarters. In fact, we do not rule out prices as high as US$20 or 30 per pound, 

but prices could also go lower than US$10, as we recently observed." 


    For its 2009 report, MolyExp makes projections regarding demand, analyzes 

projects likely to materialize, and considers the evolution of supply and 

prices, as well as examines China's role in the next eight years. 


    All of the information regarding future prospects for molybdenum for the 

2009-2017 period are available to market analysts and industry experts at 


 


     SOURCE:  MolyExp 


    CONTACT:  Gonzalo Valenzuela, 

              Extend Comunicaciones, 

              +011-56-2-437-7700, 

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              gvalenzuela@extend.cl,

              for MolyExp


Translations:

   Chinese - Traditional (http://asianetnews.net/Download.asp?ID=133208)



 

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