Molybdenum highlights

摘要

Demand for molybdenum products continues to evade the market as slowing steel production growth rates reduce steel mills' requirements for material. Continual Chinese export surpluses are forcing international prices downwards as supply remains more than adequate. It was thought that falling prices would entice Chinese buyers back into the market as the spot price is nearing production prices, however this has not yet occurred. The result is likely to be a curtailment of production by smelters should prices fallmuch further. As we look ahead, we may see a slight revival in prices during the final quarter of the year as mills look to restock material. The effect of continued and co-ordinated expansionary policies by governments and central banks should also help to support molybdenum demand from steelmakers, and in turn prices, in the coming months.