China's Customs Statistics has announces China's trade balance of molybdenum in September 2011 as well as in the January to September 2011 period.

 

The balance had been export surplus during the first five months this year, until May, but in June and July it turned to import surplus. Although the balance turned back to export surplus in August, September was the month of import surplus again. There seems no underlying tendency established yet in the second half of this year.

 

During the first nine months of 2011, total exports were 18.663 million pounds while total imports were 14.217 pounds, export surplus. Compared to the last year's figures during the same period, imports, although having been gradually increasing on monthly basis, were down still by as much as 49.4%.

 

Probably China will become reliant mostly on domestic supplies for molybdenum in the near future, as new resources in China are being developed, meaning no import boom as seen in 2009 is likely to happen again. The price of molybdenum oxide in the international market, having been quickly softened since October, hit below USD 13 per pound Mo at the beginning of November.

 

The reason of the drop this time is most probably short sales by merchants, but the underlying reasons for the downtrend are the expansion plans in the western world, and China's unexpected drawing back in imports. As the production cost of molybdenum oxide in China is said to be USD 12 to USD 13 per pound Mo, China's appetite for the lower costed materials by imports will be possibly stimulated, if the price goes below USD 12 per pound Mo.