The International Slavery Discovery Federation predicts a faster growth rate of 5.5 percent per year by at least 2010. An increase in stainless steel production would require higher molybdenum consumption. News of the 8th of June is forecasted by MEPS Steel News that molybdenum prices are rising during the summer months. The news service reported: "Prices of stainless steel from the season until September". However, the service warned: "We maintain that the current market outlook continues to exist in the medium term, and production is beginning to rise to meet current orders – this is largely speculation against rising raw material costs. They felt that stainless steel prices and possibly molybdenum will be lower by the end of 2006. At the same time, they also warned: "This estimate implies a reduction in the price of nickel."
How does Smirnova feel the molybdenum plays a role in the perceived correction of steel or basic metal prices? use: "Although 75 percent of moth consumption is in different steels, the metal usually represents a small proportion of steel depending on end use, 0.2 percent or as high as 8 percent for steels with extra strength and corrosion resistance gük.Az average would be closer to the lower end of the range, "Smirnova pointed out," In many applications the cost of moly is not significant. "Nickel and moth consumption as an example:" At current prices, nickel is ten times more expensive than moly steel, 10% Ni and 0.5% Mo. "
But what if expensive copper dives "I do not think that moth prices should have to hit when copper prices go south," Smirnova said. While about 60 percent of molybdenum is one of the by-products of some of the world's largest copper mines, Smirnova pointed out: "Markets are quite different and the two metals have a different end-use. "He also remarked:" The supply side has few moles as copper. "
And how do these companies see?" The Moly producers we talk to indicate that they have no "It is clear that demand is needed and that provides a basis for the price." For those who are worried that the economy will be fueled next year, Smirnova has offered this feeling of comfort. " Moly is also better insulated from some economic downturns (such as copper). "If the US housing market collapses – as we see it, the moth will support energy and mining without spending reducing these areas. "Michael Magyar writes in the yearbook of the USGS Minerals:" The diversity of the use of molybdenum materials, some of which provide acceptable substitution, have been doubled in the Western world. "
Is molybdenum a metal instead of metals or pay higher costs if these price levels are higher or higher?" Smirnova argues that the energy sector is not likely to replace moth with another metal. "Of course, moth replacement is possible in some applications , but due to its properties it is invaluable in energy-related sectors. "The minister pointed out:" Quality prevails and I do not think anyone wants to see the Mackenzie Valley channel corroding and leaking. The same applies to any other oil and gas projects. "Smirnova recalled that demand for molybdenum faded illegally while oil and gas companies are promoting their projects." This is good for the energy sector that supports the moth needs. "
We talked to Michael Magyar, a USGS molybdenum commodity specialist on metal pricing and explained:" The molybdenum market usually requires 10 to 12 weeks of stock for convenience. "That's about 60 to 80 million" The molly quantity is currently producers and traders in the hands of approx. 10 million pounds. "About two weeks of production
The Hungarian has been analyzing the rapid growth of molybdenum pricing since the reconstruction since the peak of 2005." The stock was rebuilt by the end of 2005. "The price level was revised in the fourth quarter of 2001 "At the end of 2001, he explained the climate:" Copper producers did not seek money. "Kennecott, Phelps Dodge, and others, decided to produce production in the fourth quarter (2001) are withdrawn from the market. "Moth prices have risen." There was a decline in supply and increased demand for steel molybdenum manufacturers. "
China's demand for stainless steel increased its price by more than $ 30 / . "Moly grills were not prepared for the increased supply, they needed about five months to get fit."
The question for which there is no definite answer is that the Moly grills were not prepared for the increased supply. next: Is demand to be loose or to stay solid? China's largest molybdenum mining company, the world's third-largest producer of molybdenum production in America and Chile is sufficient to meet demand, Smirnova analyzed the current balance of demand and supply, "The answer to the question depends on the time frame." He explained: "We have reported different mining companies "One, most of the enlargement is small, one to five million pounds, and more importantly, the timing of larger projects can be questioned."
Sprott Research Associate cited an example in the United States: "The Phelps Dodge plans to resume the Climax mine in Colombia by the end of the 2009 feasibility study until the end of 2009." The price is a large number of commodities, and it presented the insight: "This underlines the importance of licensing, sleigh big the dam that is needed for such a project to be realized. "
The United States is not alone in production challenges. One of the world's most popular molybdenum manufacturers is Chile, which declares molybdenum as a by-product of copper production. "Chileans have their own questions," said Smirnova. "There is a lack of water, and some regions have stopped giving new water rights." More trouble was caused by the Chilean molybdenum list: "Challenges such as increased environmental awareness, longer licensing of timetables and lack of industry equipment make it difficult to launch new mines or expand capacity."
Smirnova concluded that increased production is not necessarily available. "From this point of view, I question how molar production will grow in the short term." The Hungarian believes that the Climax mine will not open until the super-manufacturing Henderson mine is exhausted. He suspects that Phelps Dodge uses the Climax mine for the next few years as a mowing horse that keeps production on the market.
The current molybdenum pricing, from $ 24 to $ 25 / pound, shows a big difference in actual production costs. "The cost of producing primary molybdenum is about $ 4 / pound," Magyar explained. "The byproduct moth is about $ 2 / pounds since copper companies do not have the added mining costs – it's a byproduct." New mines, according to the Hungarian government, could cost between 6 and 8 USD / pound.
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