Reuters reported that Thompson Creek Metals Co sees strong long term demand for molybdenum, though near term orders should remain weak but steady with some ongoing pick up from Chinese buyers and other customers following later in 2009.
Mr Kevin Loughery CEO of Thompson Creek said that after a heavy destocking process over the last few months, some steel producers have given word they may be ready to buy molybdenum again in coming weeks. He added that "We've had conversations with a variety of customers who tell us they are not in the market now, but next month or the month after, there will be some orders forthcoming."
While that is not hard information, he added, it is the kind of information the molybdenum miner and producer gets from its customers that it can usually rely on.
He said that "We'll have wait and see if that happens. It's somewhat factually based, somewhat anecdotally based, maybe somewhat wishful thinking. But our sense is that the molybdenum market isn't going to get a whole lot worse and should get better. But I don't know when the turnaround will occur."
For guidance, he said, indications point to a demand pick up either later in 2009 or early 2010.
Molybdenum's hardening and anticorrosive properties in steel make it indispensable in all aspects of oil drilling and pipelines as well as high end uses in chemical processing plants, power generating plants, and desalinization plants.
Mr Loughery said that he had no indication that Chinese customers were buying molybdenum supplies for inventory and thought the metal was being put to use for specific projects. He added that "So far, about 20% of our material has gone to China."
(Sourced from www.reuters.com)
