Reuters reported that the prices of molybdenum would face short term volatility as top producer China turns into a key importer of the silvery metal.
Molybdenum which is obtained mostly as a byproduct of copper has seen prices more than double to around USD 17 per pound in recent months but still far from USD 34 per lb highs reached in 2008.
Mr Pablo Bascur an industry consultant and former executive at world's top copper producer Codelco said that demand for molybdenum will likely pick up later this year and in 2010 as the worldwide financial storm eases. However, China's heavy stockpiling seen this year could keep prices from finding their footing.
Mr Bascur said that "I hold the view that we will continue to see high volatility in at least the next Q3 because this stockpiling will take some time. I believe we will have periods of very low prices at USD 10 per lb but I also don't rule out prices over USD 20 per lb."
He said that the metals' price could even peak to pre-crisis levels but China will keep markets guessing with its rising molybdenum inventories.
