Molybdenum Suppliers Increase Export to China

Posted in The World Of Metal on 25th February 2011

William Rowland are a leading supplier of Molybdenum.

China was once a major exporter of molybdenum, peaking at around 74 million lbs in 2004. Since then, exports have declined year on year, and in 2009 it became a net importer of the metal, taking around 65 million lbs more than it exported. This figure declined by almost 90% last year, however net imports still totalled around 6 million lbs.

This trend is, in part, due to Government regulations which have been instituted in China and designed to limit molybdenum exports - export quotas were introduced in 2007 and export taxes levied of 5% for molybdic oxide and 20% for ferro-molybdenum.

The Chinese demand for molybdenum is driven by the country's steel industry, which is now the largest in the world and accounts for more than half of global steel production worldwide. In early 2008 China was producing more than 45 million tonnes of steel per month, although production plummeted, as it did worldwide, during the financial crisis. Output quickly recovered however, and is now hovering at around 50 million tonnes per month.

However, alloy steels, which consume most of the molybdenum used in all steels, is now less than 10% of all Chinese steel output, and the country now produces around 50% of the world's steel whilst consuming only 33% of the global molybdenum supply.

Despite this, China is the predominant factor in molybdenum supply, demand and pricing, and, notwithstanding some peaks and troughs, molybdenum has consistently attained higher low points as steel demand has recovered worldwide.

So what for the future? Well the molybdenum market is expected to either be in balance or slight surplus this year, after registering less than a 10 million lb surplus in 2010. In 2012 molybdenum is forecast to be in deficit by at least 10 million lbs, shrinking to 5 million lbs in 2013, before registering a surplus of at least 40 million lbs in 2015. This surplus is then predicted to shrink as demand catches up with supply, however no supply-demand deficits are forecast for molybdenum until at least 2020.

William Rowland Ltd are molybdenum 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.

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