a ray of sun on a gloomy day

Have been doing some research on the future of Molybdenum and found this in an article. Makes for an interesting read. Hope it cheers some up.

Moly: A Back Door Energy Play

On top of that, the moly boom shows no signs of slowing down.

You see, moly is used in steel production and is a key ingredient in making steel for oil and natural gas transporting pipelines.

According to the Oil & Gas Journal, there are currently more than 57,000 miles of pipelines slated for construction around the world. It takes 2,500 pounds of moly to make one mile of pipeline. So that’s $4.7 billion dollars worth of moly need just for pipes, which only account for about 8% of the total global moly market.

Safe to say that moly demand won’t be falling off for quite a while.

The metal is also heavily used to construct nuclear power plants. It takes as much as half a million pounds of moly to build a nuclear power plant.

Demand from nuclear power plants could be the proverbial straw that breaks the camel’s back in this situation. Purdue University says, “[This asset] trumps stocks as a true blue chip investment.” It’s no wonder considering it has increased in value 34 of the past 37 years. Learn how you can take advantage of this unique opportunity here.

There are more than 30 nuclear power plants under construction or slated to begin construction in the next few years. The construction of all them would add a total of about 1.5 million pounds of moly consumption to an already tight market.

It’s not just the construction of new nuclear power plants that will drive the demand for moly. On average, nuclear power plants around the world are very old. Most nuclear plants in the U.S. are well over 30 years old and are within a few years of decommissioning. They must be retrofitted and it’s going to take plenty of high moly steel to do that.

The U.S. Geological Survey states, “There is little substitution for molybdenum in its major application as an alloying element in steels and cast irons.”

Since it’s used extensively in these two key areas and there’s no substitute, it’s no wonder the price of moly hasn’t been hit by the recent downturn. But it’s not just demand that has kept moly prices up.


Can post rest of article if anyone wants to pass the time.

Banksy
"DMOR" - Doing my own research