Multi-Metal Development Corp. (MLYCF)

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Global molybdenum demand hits new high in 2010: IMOA

Updated: 2011-06-14 09:35
Counter:95
Global demand for molybdenum hit a new high in 2010 at 474 million lbs contained molybdenum, the International Molybdenum Association said on Monday.

IMOA said that the figure surpassed the previous high of 470 million lbs in 2007.

In 2010, the greatest growth in molybdenum usage came from China where consumption was up from 119 million lbs in 2009 to 148.5 million lbs in 2010.

European demand was 113.9 million lbs in 2010 up from 107.3 million lbs in 2009. Usage in the US and Japan accounted for 67.9 million and 60.9 million lbs respectively in 2010.

Focusing on the fourth quarter of 2010, China consumed 36.2 million lbs of molybdenum compared with European demand of 31.1 million lbs. The US and Japan used 15.9 million and 15.8 million lbs respectively.

According to the association, North America was the largest producing region in 2010 with 173.2 million lbs but China remained the largest producing country with 159.9 million lbs.

Over the fourth quarter of the year, North America's molybdenum output rose to 47.8 million lbs up from 42.8 million lbs the previous quarter, while China's production hit 35.3 million lbs.

South America was the third largest molybdenum producer accounting for 115.8 million lbs, with other molybdenum producing regions contributing 48 million lbs.

http://www.chinamining.org/News/2011-06-14/1308015413d46606.html

And let’s not forget oil pipelines. Every mile of oil pipeline requires 3,200 pounds of molybdenum. Just think of all the shale drilling projects going on around the world. They all need pipeline expansions to get this production to market.

So, if you invest now in molybdenum, expect the near term to be soft. But things will heat up and we could see supply and demand tighten as steel use gains momentum and the oil and gas industry expands.

http://www.investmentu.com/2011/May/molybdenum-investing.html

watching for a year. Ready to enter soon.