LME Contracts near for Cobalt and Molybdenum

Posted in Industry News on 19th October 2009

William Rowland are a leading supplier of Cobalt and Molybdenum.

With metals traders eagerly preparing themselves for the upcoming LME week, two of the first minor metal contracts to be introduced for commencement in 2010 will be for molybdenum and cobalt.

The positive outlook for molybdenum was recently highlighted by Catherine Virga, senior base metals analyst at CPM Group in New York, who said "there have been some rather bullish structural trends for the past couple of years," adding "China's seeing a tremendous surge in demand for molybdenum and steel." The surge in demand, combined with the various fiscal, stimulus packages available, will result in a worldwide consumption of around 120 million tonnes over the next two years.

Whilst the forecast for molybdenum is bright and optimistic, the cobalt market is preparing itself for an uncertain future as a growing number of mining operations throughout Africa are brought on-stream.

Speaking at the LME breakfast, Eric Taarland, senior consultant at CRU International Ltd. re-iterated this concern, stating "as more supply comes on-stream, we expect pricing deterioration".

With cobalt demand also a concern due to recent decline patterns, a brief resurgence is expected as the demand for electric cars increase, thanks to cobalts primary use in batteries.

The new trading platforms for molybdenum and cobalt contracts are due to commence on February 22nd, 2010.

William Rowland Ltd are cobalt suppliers, and if you would like to find out how we can meet your requirements, please contact us using the Quick Enquiry Form on the right-hand side of this website.

Tags: Cobalt News, High Purity Metals News, Metal Powders News, Molybdenum News, Thermal Spray Powders News