An email correspondent writes to query a piece out there about molybdenum prices. They’re rising. They’re rising because China demand. So, what oogieboogie is China up to to drive the price of molybdenum up and thus murder us all in our beds?
My response is less than temperate:
That’s a particularly stupid piece.
The answer is in there he just doesn’t recognise it.
China’s steel production is booming. We can see it in the iron ore price. It’s a part of the Chinese stimulus plan through infrastructure. The major use of Mo (80% of total) is in FeMo for steel making. There is no mystery here.
More steel means more FeMo use means more Mo use.
Now, if China was buying up metallic Mo, the major use of which is in superalloys – ie those not containing iron – then we’d have an interesting question. But that ain’t what’s happening.