TEX reported that the quantities of molybdenum exported by Chile in the calendar year (January to December) of 2010 were known. Namely, the actual quantities (on material base) of molybdenum exported from Chile in 2010 were roasted molybdenum ore: 50,048 tonnes, unroasted molybdenum ore: 14,558 tonnes and ferromolybdenum: 12,485 tonnes.
On the other hand, the quantities of molybdenum exported by Chile in the preceding year of 2009 were roasted ore: 58,976 tonnes, unroasted ore: 13,075 tonnes and ferromolybdenum: 10,819 tonnes and, when the actual quantities of molybdenum exported from Chile in 2010 are compared to those in 2009, roasted ore: decreased by 15.2%, unroasted ore: increased by 11.3% and ferromolybdenum: increased by 15.4%.
The export of molybdenum from Chile to China was nil until 2008 but Chile exported 19,742 tonnes in material of roasted molybdenum ore for China in 2009, having had a considerable expansion. Therefore, the same case as that in 2009 was expected to arise in 2010 but, on the contrary, the exports of molybdenum from Chile to China in 2010 had a substantial decline. Owing to the excessive imports of molybdenum into China committed in 2009 on speculation, the stocks of molybdenum in China had an excess in 2010 and an intention to import molybdenum into China suddenly shrank. In order to dispose of the excessive stocks of molybdenum, China turned to endeavor their positive exports of molybdenum in 2010.
The actual quantities (on material base) of molybdenum exported from Chile to China in the calendar year of 2010 were roasted ore: 7,320 tonnes as compared to 19,742 tonnes in 2009, unroasted ore: 1,048 tonnes as compared to 3,944 tonnes in 2009 and ferromolybdenum: nil as compared to 40 tonnes in 2009.
It is not clear yet how do the exports of molybdenum from Chile to China develop in 2011. However, when the international price of molybdenum oxide is kept on a higher level than USD 15 per pound of Mo, the circumstances are supposed to be unable to allow China to import molybdenum on an extraordinary scale as arisen in 2009. The cost to produce molybdenum oxide in China is estimated to be USD 12 per pound of Mo and there is an opinion in the market that steel companies of China will give a priority to purchase ferromolybdenum produced in China instead of the cargoes to be imported into China.
The reason, why the exports of Chilean molybdenum in 2010 revived on a basic tone from those in 2009, was due to a recovery of the demand for molybdenum in the western world, which had depressed in 2009.
(Sourced from TEX Report Limited)
