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Chinese export of molybdenum dealt a blow to US prices

According to Metal Bulletin, China became in May (the first time since December 2008), a net exporter of molybdenum, which was one of the leading factors for 22% of th correction spot price of molybdenum in the US, up to $ 14 per pound, and, according to market participants and analysts of Macquarie Bank, this situation will continue for the next few months. «The Chinese traders catapulted here a couple of weeks ago, considerable amount of both Chinese and Western European raw materials, and saw everything as it was reflected in the prices. I suspect that they have not completed the liquidation of stocks, so that we will again see the emergence of Chinese merchants. And it will keep spot prices in the US in check, at least until September, «- said one trader.
Another American trader said that prices rose slightly due to a small episode of short covering last week, but the rally came to naught. «I suspect that the price of molybdenum has a little decrease, but not too much. The market is likely to «plateau» all summer «- said a trader.
After achieving prices on molybdenum oxide peak in April at $ 18 per pound in late April, the US spot price has fallen a few weeks ago to $ 13.75 per pound and is currently in the range of $ 14−14.5 per pound versus $ 14,75−15,25 per pound the previous week.
Based on the monthly statistics, Macquarie Bank estimated the Chinese net exports of molybdenum products in May at 1.4 million pounds, about half of which was molybdenum oxide.
The bank said Chinese companies and traders have accumulated in the past year, significant reserves of molybdenum, and surplus materials have reached there in 2009 marks 75 million pounds, and the elimination of its stock this year has exceeded 15 million pounds.

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