China may become largest purchaser of Chilean molybdenum
Sunday, 20 Sep 2009
TEX reported that Japan was so far the largest country for Chile to export molybdenum but China is supposed to have become the most important country in 2009 for exports of molybdenum produced in Chile. According to the data compiled recently, Chile exported 27,097 tonnes in material of molybdenum in the first half of 2009, having increased by 12.6% compared with that of 24,054 tonnes in the same period of 2008.
The quantities of molybdenum exported from Chile to main destinations in the first half of 2009 were for China: 10,837 tonnes as compared to 50 tonnes in the same period of 2008, for Netherlands: 8,015 tonnes as against 6,787 tonnes in 2008 and for Japan: 4,930 tonnes as compared to 9,608 tonnes in 2008.
Chile produced 16,898 tons on content base of molybdenum in the first half of 2009 by a small increase from that of 16,690 tonnes in the same period of 2008 but the fact, which Chile increased their exports of molybdenum in the first half of 2009 by 12.6% as mentioned above, contributed to the output of molybdenum in Chile for the first half of 2009.
China was so far one of main countries to export molybdenum and the most powerful rival for Chile but has suddenly turned from 2009 to the most important country for exports of Chilean molybdenum. The reason is molybdenum price. In February of 2009 when Chile moved to increase their exports of molybdenum, market price of molybdenum oxide was USD 8.83 per pound of Mo, having fallen to the lowest level in the last 5 years. After that, price of molybdenum oxide continued to fall in March and April, and the lowest oxide price in April was USD 7.70 per pound of Mo. However, then, price of molybdenum oxide has turned to recover on a slow pace.
According to the customs statistics released in China, this country imported 33,219 tonnes in material of molybdenum, being equivalent to 40.5 million pounds on Mo content base, in the first half of 2009 and China is said to have committed excessive imports of molybdenum. It is questioned whether Chile exports molybdenum for China in the second half of 2009 on a similar high pace to that recorded in the first half or not.
