Molybdenum price expected to keep increasing by 12% in 2011

BEIJING (Asian Metal) 17 Jan 11- In view of the increasing demand for molybdenum from energy industry and aircraft industry, it is predicted that the molybdenum price would continue to move higher in 2011, keeping a moderate rate at around 12%. Molybdenum oxide price dropped all the way down to USD10/lb from USD33.5-34.5/lb due to the global economic crisis, arriving the lowest at USD7.5-8.0/lb in April 2009, however, after the recovery in the second half year of 2009 and the whole 2010, the present molybdenum price reaches USD17.00/lb.


The molybdenum price rises up in a winding and vibrated way instead of the expected smooth and rapid manner. It is predicted that the molybdenum price would increase further as the present trend with fewer frequency than that of 2010. The average price for molybdenum increases by 12-13% finally from 2009 to 2010, despite of slow speed on the recovery. To take the domestic market for example, the average molybdenum price in 2010 increased by 12.5% than that of 2009.


The average price for molybdenum concentrate 45%min and ferromolybdenum 60% in 2008 in China: RMB3,990/mtu and RMB270,000/t.


The average price for molybdenum concentrate 45%min and ferromolybdenum 60% in 2009 in China: RMB1,880/mtu and RMB130,000/t.


The average price for molybdenum concentrate 45%min and ferromolybdenum 60% in 2010 in China: RMB2,115/mtu and RMB145,000/t.