Molybdenum’s route for a slow recovery

Moly Investing News reports demand for molybdenum may rise in China.

Government spending will spark a recovery in steel demand towards the end of the year; but its mark on the molybdenum market will be limited. Demand for molybdenum in China likely will rise 6 per cent to 53,400 tonnes this year, then slip to 52,800 tonnes in 2010 before growing again to 55,200 tonnes in 2011, according to a UBS Securities Co. Ltd. report. Growth in Chinese demand is in contrast to the expected decline in global demand; however, there is still opportunity in the market for production cuts and mergers to alter supply and demand fundamentals.