The quantities of molybdenum produced in the western world for the Q1 of 2011 were known. The data have been compiled on the basis of settlement of accounts for the Q1 of 2011 as released by each company and consequently, the quantities of molybdenum produced in both regions of North America and Central & South America for January to March quarter of 2011 had increased to a large extent.
The total quantity of molybdenum in molybdenum concentrates produced by major molybdenum mines of the world in January to March quarter of 2011 had come up to 74.76 million lbs on Mo content base having had a substantial increase of 24.0% compared with that in the same quarter of 2010.
The quantities of molybdenum in concentrates produced by both regions in January to March quarter of 2011 were 39.89 million lbs. in North America, having increased by 16.9% compared with that in the same quarter of 2010, and 34.87 million lbs in Central & South America which increased by 33.3% compared to that in the same quarter of 2010.
In particular, being stimulated by a favorable tone of copper price as seen from the beginning of this year the output of copper in the H1 of 2011 had a substantial expansion at most of copper mining companies. Accordingly, the output of molybdenum as by product in the process of copper production was also on a basis tone to increase in the H1 of 2011. This aspect was the reason why Central & South American region had a considerable increase of molybdenum production in the period.
As a matter of fact, Codelco of Chile, one of major molybdenum mines in the world, produced 6,000 tonnes of molybdenum in concentrates in January to March quarter of 2011 which had a remarkable increase in comparison with that produced in the same quarter of 2010 and this expansion of molybdenum production at Codelco was due to the fact that this Chilean mining company produced 414,000 tonnes of copper in the Q1 of 2011 as increased by 8% from that in the same quarter of 2010.
Codelco maintained to produce molybdenum on a scale of 45 million to 48 million lbs per annum in the recent years but turned to increase their molybdenum production from January to March quarter of 2011. The quantity of molybdenum in concentrates produced by Codelco in the Q1 2011 is calculated to come up to 53.0 million lbs on an annualized base. However Codelco had restricted somewhat their sales of molybdenum in January to March quarter of 2011 and actually sold 5,000 tonnes having remained on a similar level to that in the preceding quarter of October to December of 2010.
As regards the output of molybdenum in the western world for the last 2 to 3 years, North American region had a remarkable expansion of molybdenum production based on the output from primary mines. Consequently, a ratio of primary molybdenum against by-product molybdenum has moved to change. In 2010, the production in North American region increased its share by 26.3% while that in Central & South American region increased slightly its share by 5.4%.
The global demand for copper has had an explosive increase in 2011, mainly in China and the world production of copper has been increasing remarkably. Therefore, it is questioned whether the production of by-product molybdenum will be increased again or not. From this point of view, the year of 2011 is supposed to be the stage to start up this change.
In addition, the trade on molybdenum by China has transformed largely from January to March quarter of 2011. Following the case in 2009, a balance on exports and imports of molybdenum by China in 2010 had an excess of the imports with net quantity but this position has reversed in January to March quarter of 2011 and China had an excess of the exports with net quantity of 4.30 million lbs. The imports of molybdenum by China had been extremely restrained and the exports from China had an increase. The quantities of molybdenum traded by China in January to March quarter of 2011 were imports, 4.88 million lbs and exports, 9.18 million lbs.
These changes of composition in major areas to produce molybdenum have put a substantial influence on the international prices of molybdenum products. The price of molybdenum oxide as of June of 2011 is USD 16.50 per lb. of Mo. For a reference, the oxide price in January of this year was USD 17.50 per lb. of Mo and this price level was kept until May but then has turned to fall. The power to rise prices of molybdenum products is though to be on the track to be diluted by low cost for by product molybdenum and resumption of molybdenum exports from China.
(Sourced from TEX Report.com)
