According a Jinduicheng Molybdenum Group (JDC) spokesman, China’s Ministry of Commerce will soon announce the country’s list of potential exporters of moly products. JDC vice president Lu Jingyou told attendees at an Asian ferroalloys conference on Tuesday there were 54 molybdenum producers who were candidates for exporting moly. He noted, “But I expect less than 50 percent of the total to be granted the export quotas.” In any event, he told attendees at the conference that Chinese moly exports were falling.
The small number of potentially selected Chinese molybdenum exporters, and falling Chinese exports, is bullish for the molybdenum price. The short-list signals the market that China’s much-feared ‘return’ to the moly market lacks the teeth many anticipated it could have. This fits in with speculation StockInterview discussed with Blue Pearl executive chairman Ian McDonald. In comments not previously published, McDonald told us, “If they (the Chinese) can produce it at $4/pound and can sell steel that has moly in it, they’ll make more money eventually selling the finished product.”
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