China continues to be net moly exporter

According to the customs statistics released in China, the quantities of molybdenum exported and imported by China in June 2010 were exports: 2.62 million pounds and imports: 2.13 million pounds. Therefore, China had still continued to be the net country to export molybdenum, following the same case in May.

However, a balance on exports and imports of molybdenum by China in the first half of 2010 had still an excess of the imports. Namely, the quantities of molybdenum traded by China in that period were exports: 15.49 million pounds and imports: 21.51 million pounds, having indicated an excess of the imports. This aspect was influenced by a considerable quantity of molybdenum imported by China in January to March quarter of 2010.

The Central Government of China launched from July of 2007 to control the exports of molybdenum from China. This policy has been maintained even in 2010. The quantity of molybdenum allocated for exports in 2010 is 25,007 tons on material base and it is not possible to break away from this frame. Accordingly, even if the exports of molybdenum from China could be increased, there is a limitation for the quantity to be exportable.

However, China suddenly transformed from the beginning of 2009 to the country to import a large quantity of molybdenum and converted from the country to export molybdenum to the net country to import more molybdenum. The substantial imports of molybdenum by China in 2009 were thought to have included the stockpiles but the imports on speculation were also committed, having resulted in the accumulated stocks of molybdenum in China.

Therefore, there might be a possibility that part of these stocks were exported again from China to overseas countries. According to an estimation by Antaike, China would have produced 45,344 tons on material base of molybdenum in the first half of 2010, having increased by 13.03% compared with that in the same period of 2009, and the domestic production of molybdenum in China has been on a basic tone to recover.

Under the circumstances as mentioned above, China has been expanding from spring of 2010 their exports of molybdenum. The quantities of molybdenum exported by China in January to June of 2010 were January to March: 6,068 tonnes (imported 11,629 tonnes), April: 1,963 tonnes (imported 3,092 tonnes), May: 2,892 tonnes (imported 2,008 tonnes) and June: 2,192 tonnes (imported 1,811 tonnes).

The matter, which China has regulated to export molybdenum and resumed to export molybdenum, has put a substantial influence on the international prices of molybdenum and caused to fall steeply the prices from the end of May. The ceiling price of molybdenum oxide in this time was USD 18 per pound of Mo recorded on the end of April but that at present is USD 14.80 per pound of Mo, having fallen sharply from the ceiling of USD 18.
of molybdenum