July 2012 | Ferro-alloys
As prices fall close to costs, production cuts could be imminent: Molybdenum Highlights
Chinese molybdenum prices are sliding and approaching production costs.
Chinese buyers were expected to re-enter the market when prices fell to around the $13/lb level. Restocking at this level would mean that prices were just above the production cost of molybdic oxide in China, thought to be around $12/lb. With prices trading in the $12.80-13.10/lb CIF in-warehouse range, demand is still weak. Prices do not have much room for further downward revisions without forcing the introduction of production cuts.
After a promising start to 2012, which saw prices climb 8.3% between January and February, prices have slipped back with the year-to-date average price at just $14.04/lb, down from $17.33/lb in...
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