MOL 0.00% 6.9¢ moly mines limited

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  1. KGD
    236 Posts.
    Mining outlook: MolyExp Releases Report: Unusual Stock Accumulation in China Will...
    Wed Sep 2, 2009 12:00pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+]

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    Mining outlook: MolyExp Releases Report: Unusual Stock Accumulation in China
    Will Be Key to Molybdenum Market Evolution
    - According to Pablo Bascur, MolyExp managing partner, the incipient recovery
    of moly prices is not a response to an increase in consumption, and that China
    will play a key role in upcoming quarters

    SANTIAGO, Chile, Sept. 2 /PRNewswire-FirstCall/ -- The incipient recovery
    of molybdenum prices observed during 2Q09 does not respond to a true increase
    in consumption. According to Moly Market Outlook, a study conducted by the
    consultancy firm MolyExp, the enormous and unusual accumulation of molybdenum
    inventories in China during 1H09 will play a key role in moly prices in future
    quarters.
    Pablo Bascur, managing partner of MolyExp, explained, "For example,
    Chile's total molybdenum production for 2008 is equivalent to the amount of
    the excess of stock accumulated in 1H09. It is interesting to note that in
    this period, 40% of Chilean molybdenum oxide exports were shipped to China,
    while no molybdenum oxide was shipped to that country in 1H08."
    The report highlights the prominent role played by China in the molybdenum
    market, in which it went from being the primary global producer in 2008, with
    exports of 25 million pounds, to becoming a net importer in 1H09, acquiring 35
    million pounds from Western operations and absorbing all the excess stock in
    the rest of the world.
    "The tight market in the West has doubled the prices between April and
    August of this year, despite the fact that for the first half of 2009, the
    apparent consumption in the West decreased over 40% with respect to the same
    period in 2008," Bascur concludes.
    Regarding future prices behavior, Bascur says that depending on how those
    stocks are managed, "We may see a high level of volatility over the next few
    quarters. In fact, we do not rule out prices as high as US$20 or 30 per pound,
    but prices could also go lower than US$10, as we recently observed ."
    For its 2009 report, MolyExp makes projections regarding demand, analyzes
    projects likely to materialize, and considers the evolution of supply and
    prices, as well as examines China's role in the next eight years.
    All of the information regarding future prospects for molybdenum for the
    2009-2017 period are available to market analysts and industry experts at
    www.molyexp.com.
    SOURCE MolyExp

    Gonzalo Valenzuela, Extend Comunicaciones, +011-56-2-437-7700,
 
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