WORLD MOLYBDENUM MINE SUPPLY

摘要

In 2005, molybdenum prices skyrocketed to an annual average of more than 31 dollars/lb, up 95 percent from a 20-year high of 16 dollars/lb reached in 2004. China's continued high levels of steel production and consumption, coupled with increased molybdenum use in oil exploration and development, have provided strong demand. With the continuing high price of nickel-bearing stainless steel in 2005, consumers increasingly considered substituting molybdenum-bearing stainless steel. Producers responded to elevated molybdenum prices by increasing production, which helped push prices down to 25 dollars/lb by year-end 2005. However, the capacity to roast concentrate has lagged mined output, keeping the market tight. Roasting capacity is expected to increase modestly in 2006, although not enough to keep up with increasing mine production. Thus far in 2006, higher production has kept pressure on prices, which averaged 24 dollars/lb through August-down 25 percent from the same period in 2005, but still well above the ten-year average of 8.70 dollars/lb.