MLY''s Future
Well lets see:
-Molybdenum is a vital component in the making of stainless steel and oil and gas pipelines.
-China’s GDP is expected to hit $12 trillion by 2020, currently equivalent to that of the U.S. Last year, China’s economy grew at 11% compared to 3.3% in the U.S.
-China’s economy grew at 11% compared to 3.3% in the U.S.
-China now demands about 49% of the world’s iron-ore, but Korean and Taiwanese steel consumption is still 4-5 times more than Chinese demand at present levels
-as reported today Hedge funds eyeing steel companies as possible LBO targets
-The China Iron and Steel Association recently predicted that China's steel consumption growth rate would be 10%-13% in 2007
-P&GJ's 2006 Worldwide Pipeline Construction Survey shows 81,593 miles of new and planned oil and gas pipelines are either under construction or planned. Global pipeline projects could account for as many as 73,000 more miles of pipe over the course of the next two decades.
-If 1,600 tonnes of pipeline steel were required for every mile of pipeline, the energy industry would need more than 600 million pounds of molybdenum. That’s about 150% of the world’s current production.
-Statistics from the U.S. Geological Survey show world-wide molybdenum consumption at an apparent 44,500 tonnes (although reported figures are only 19,300 tonnes).
-Consumption has increased 25% since 2005 and 84% since 2004.
-On the supply side, mine production came in at 60,500 tonnes last year, up only 2,500 from 2005.
-Moly Funds like Sprott Moly and maybe the new upcoming Sentry Select Moly fund buying up available stockpiles of Molybdenum to help squeeze the supply by sitting on the Molybdenum purchased causing prices to go higher
-much much more out there highlighting the bright future of moly which would correspond to TCM, MOL, MLY, GMO and the others
JUST MY OPINIONS
and much of the info in this post came from an article i read at metals place.com