China Molybdenum expects specialty steel sector to support 2013 moly price
Author:Network sources Source:Network sources Date:2013-04-23
 China Molybdenum, the country's biggest moly concentrate producer, said Monday that it expects the domestic specialty steel sector to support molybdenum prices this year, despite expectations of little improvement in the global economy.


In its annual earnings report filed with the Shanghai Stock Exchange, the Henan-based producer said that while it did not see any sign of the global economy improving this year, "moly as a vital material in specialty steel and new alloy materials should enjoy faster growth in China's domestic moly consumption, thus moly prices are expected to be stable in 2013, with rising trends."


It added: "Although China's steel capacity is still in a surplus state, we see specialty steel sector, the moly consumer, to enjoy comparatively bigger output growth.


"Specialty steel now only accounts for 6-10% of China's steel output, lower than 15-20% of the world's average levels, and much lower than the 30% or more in the industrialized nations."


The company did not provide any price forecasts. However, Antaike, China's state-run metals consultancy said in its annual nonferrous metals forecast meeting in March that international moly prices are expected to edge up by 2.5% year on year to $13/lb in 2013.


In China Molybdenum's annual production report released mid-March, the company said that it produced 32,456 mt, or 33.63 million lbs, of moly concentrate in 2012. This accounted for 17% of China's total output of 195,107 mt and 7% of global output of 490 million lbs, it said in Monday's report. The company said last month that it plans to produce 29,240 mt of moly concentrate in 2013, down 10% from 2012.


When contacted Monday, the company's Chief Financial Officer, Gu Meifeng, said that the 29,240 mt figure was a conservative estimate, adding that actual production could come closer to 2012 levels.


The company also produced 34,148 mt of moly oxide and 25,581 mt of ferromoly in 2012, down 8% and 13%, respectively year on year. But its tungsten concentrate output rose 16% to 5,481 mt in 2012.


China Molybdenum recorded a net profit of Yuan 1.05 billion ($168 million) and revenue of Yuan 6 billion for 2012, both down 6% from 2011.

 

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