China Molybdenum Company said that its first half profit rose by 13% YoY because of higher prices. Net income rose to CNY 1.24 billion in the January to June 2008 period from CNY 1.1 billion a year ago. Sales rose by 16% YoY to CNY 3.33 billion.

Molybdenum has jumped more than fivefold since early 2004 as demand for corrosion resistant pipes grows. China may increase consumption of molybdenum by 24% in 2008.

Mr Wu Wenjun executive director manager for China Molybdenum said that a global shortfall for molybdenum will last 3 years. He added that mines in Inner Mongolia and Henan will take time to expand capacity.