Government stimulus could boomerang moly

Moly Investing News reports many analysts are awaiting the recovery in the global markets with the government stimulus plan.

In their Global Metal’s Report released this week, Morgan Stanley gave its take on the near future for the molybdenum market. Morgan Stanley has stated, “We forecast prices to remain at a low of US$12 per pound in 2009 as the industry remains in surplus for most of the year. Given that the end market for moly is steel and related sectors, with the steel market contracting, our demand forecast looks for a contraction in line with our steel demand forecast of 5 per cent in 2009.” Morgan Stanley is forecasting global consumption in 2009 at 431.9 million pound, down 5.7 per cent from 458.2 million pounds in 2008. However, they have a bullish caveat to add on the metal’s potential.