China’s Moly Output Rises
2012/9/24 13:49:32 Editor:王颖育 366 visitors
While there are reports indicating that China’s moly production in the next decade will fail to keep up with its demand growth (Ryan’s Notes, Sept. 17, p1), the more immediate concern is the possibility of surplus production in China.
Fears about over production have not prevented new moly concentrate
projects from coming onstream recently. Zhongxi Moly started up a plant in Inner Mongolia this month. The plant has a capacity to produce 12,000 mtpy of concentrate and 6,000 mtpy of moly metal. Heilongjiang Duobaoshan has invested in a copper/moly mine in Heilongjiang province where it has a capacity to process 25,000 mtpd of ore and 600 mtpy of moly metal.
China’s moly production shows no sign of decreasing. China produced 137,127 mt of molybdenum concentrate in the first eight months of 2012, up 7.3% from the same 2011 period. August production was 16,880 mt, up 13%. Some sources pointed out that the actual output could be even more as many mines in China are not covered by the country’s official statistics system.
Chinese moly prices bounced briefly in reaction to the short rally in Europe at the end of August. The lack of solid support in the domestic market has put activity to a halt. Spot FeMo prices are at $26.70-27.70 per kg, VAT included, and moly concentrate prices are at $8.93-9.11 per lb, VAT unpaid.