Global Molybdenum Supply and Demand to Balance in 2010

Global molybdenum supply and demand are forecasted to balance at around 360 million pounds per year (approximately 164,000 tonnes) in 2010, according to Sojitz Corporation, Japanese major trading house. Both demand and supply are expected to increase widely from 2009 in response to the recovery of the world economy. Meanwhile, the supply may shorten if Chinese high import of molybdenum continues this year.

Sojitz forecasts the global molybdenum demand would increase by 30% to 359 million pounds in 2010 from 2009. The demand is expected to recover from steel industry, which consumes about 75% of the global molybdenum supply. The annual demand wouldn’t reach 409 million pounds in 2008 when the world economy peaked.

The global molybdenum supply is forecasted to increase by 25% to 360 million pounds in 2010 from 2009. Major producers including Freeport-McMoran Copper & Gold and CODELCO will increase their productions since molybdenum market price upturned.

Chinese domestic molybdenum demand is estimated at 100 million pounds per year. China had been a net exporting country of molybdenum with plenty reserves in the country but became a net importing country in 2009. Chinese miners entered wide output reductions in 2009 when molybdenum market price dropped after Lehman Shock. Meanwhile, Chinese domestic demand maintained steady. Then the country seems to have imported molybdenum at 45 million pounds in 2009.

In 2009, the global molybdenum demand decreased by 32% to 277 million pounds and the supply decreased by 25% to 289 million pounds. Oversupply trend was canceled by Chinese strong demand.