Slam Dunk..Wait till the Chinese Government signs an exclusive offtake agreement for 100% of MOL production at their Spinifex Ridge Copper/Moly Mine for the life of the mine! This ain't their first barbque and they sure as heck ain't gonna wait till moly prices are through the roof! China Scrambles to Secure Molybdenum Resources
Molybdenum Prices May Rise in 2011 as China Cuts Exports
By Luke Burgess
Tuesday, November 30th, 2010
The race is on...
World leaders are scrambling to gain control of global molybdenum assets on speculation that China will cut exports.
China is the world's largest producer of molybdenum, supplying over athird of global supplies. But growing domestic demand may prompt theChinese government to restrict exports...
This may cause the price of molybdenum to rise significantly in 2011, and lift share prices of primary producers.
China moves to secure molybdenum resources
China has been a net buyer of molybdenum for the year, importing over5.5 million pounds of the strategic metal used to harden steel.
| China produced about 160 million pounds of molybdenum in 2009. This year, analysts expect Chinese molybdenum to increase nearly 20% to 190 million pounds. |
Despite being the world's largest supplier, China may be forced to continue importing molybdenum in 2011.
The country's recent economic stimulus package — which focuses oninfrastructure — will continue to require a large supply of molybdenumfor high-strength steel to be used in bridges, power plants, andpipelines.
This will continue to have a significant impact on global molybdenumsupplies. And China has already recognized the importance of securingmolybdenum resources...
Last month, the Chinese Ministry of Land and Resources reported itwas planning to set up strategic reserves for 10 metals — includingmolybdenum and rare earth metals.