China exported 22.67 million pounds of molybdenum in 2011
According to China's customs statistics, trade balance of molybdenum in 2011 was export surplus by 4.13 million pounds, i.e. exports were 22.67 million pounds and imports were 18.54 million pounds.
The balance recorded in the past years was, 2009: import surplus by 60.91 pounds, 2011: export surplus by 0.16 million pounds. As to the balance of 2011, it is to be noted that imports sharply dropped, the balance during the first half was export surplus of 4.78 million pounds, while in the second half it was 0.65 million pounds.
Imports in the past years were, 2009: 72.4 million pounds, 2010: 30.0 million pounds and 2011: 15.6 million pounds. The big number of 2009 was based on speculative buying, as the price substantially dipped in the year.
The price change of molybdenum oxide during 2011 was USD 16 to USD 17 per pound in the first half and USD 13 to USD 16 per pound in the second half. The price suddenly started to soften in autumn to USD 13 to USD 14 per pound, but apparently it did not fall enough to stimulate risk takers' appetite for speculative buying.
It is said that the Chinese producers' break even point is USD 12 to USD 13 per pound, while an export tax of 15% is added for exports. So, if the price for molybdenum oxide dips to below USD 13 per pound and stays there for some time in 2012, China's export business will be slow, as it makes no sense.
The reason why the market sentiment has been somewhat tight since last month is partly because of the smaller volume of exports from China and probably because of the mining output cut by Thompson Creek Metals which started in the second half of 2011.
As to the trades in December 2011, exports were 1.43 million pounds and imports were 1.74 million pounds, an import surplus.
(Sourced from TEX Report Limited)