Japan was so far the largest country for Chile to export molybdenum but China is supposed to have become the most important country in 2009 for exports of molybdenum produced in Chile. According to the data compiled recently, Chile exported 27,097 tons in material of molybdenum (roasted ore) in the first half (January - June) of 2009, having increased by 12.6% compared with that (24,054 tons) in the same period of 2008.

The quantities (on material base) of molybdenum exported from Chile to main destinations in the first half of 2009 were <> for China : 10,837 tons (compared to 50 tons in the same period of 2008), <> for Netherlands : 8,015 tons (6,787 tons in 2008) and <> for Japan : 4,930 tons (9,608 tons in 2008). Japan was the largest country in the past years, having imported molybdenum from Chile, but has retreated to the third largest country in the first half of 2009. Nether lands, where is a main base to import molybdenum for European countries, has still remained on the second largest country for imports of molybdenum from Chile but China has suddenly leaped over to the largest country, having imported a substantial quantity of Chilean molybdenum in the first half of 2009. Chile exported only 50 tons of molybdenum for China in the first half of the preceding year of 2008 but actually exported 10,837 tons in material of molybdenum for China in the first half of 2009, which had a remarkable increase of 216 times from that in the same period of 2008.

Chile produced 16,898 tons on content base of molybdenum in the first half of 2009 by a small increase from that (16,690 tons) in the same period of 2008 but the fact, which Chile increased their exports of molybdenum in the first half of 2009 by 12.6% as mentioned above, contributed to the output of molybdenum in Chile for the first half of 2009.

China was so far one of main countries to export molybdenum and the most powerful rival for Chile but has suddenly turned from 2009 to the most important country for exports of Chilean molybdenum. The reason is molybdenum price. In February of 2009 when Chile moved to increase their exports of molybdenum, market price of molybdenum oxide was US$8.83 per lb. of Mo, having fallen to the lowest level in the last 5 years. After that, price of molybdenum oxide continued to fall in March and April, and the lowest oxide price in April was US$7.70 per lb. of Mo. However, then, price of molybdenum oxide has turned to recover on a slow pace.

Owing to the fact that Chile has steered their importance to export more molybdenum for China, Chile is currently able to maintain their exports of molybdenum on a larger scale than that in the first half of 2008, although a profitability for molybdenum production is another matter for Chile. The reason, why Japan decreased their imports of molybdenum to a considerable extent in the first half of 2009, was mainly due to a reduction in production of special steels caused by the cutback in automobile manufacturing. The formulas to contract on imports of molybdenum into Japan are various, comprising yearly contract, half-yearly contract and quarterly contract. Therefore, having differed from long-term contact on import of ferro-chrome which is difficult to change easily its terms and conditions, Chile could have complied sensitively with a shrink of molybdenum consumption.

However, China has suddenly arisen as a new country to consume a large quantity of molybdenum and, consequently, it is possible for Chile to maintain their exports of molybdenum on a substantial scale. While the exports of molybdenum from Chile in 2009 were initially estimated to have a decrease of 30 - 40% from that in 2008, China has become the country, having relieved from the distress caused by a decline of molybdenum consumption in the western world for 2009. However, an anxiety for the composition of molybdenum sales, which China is one of major countries in the world to produce molybdenum but also the largest market for exports of molybdenum, has existed to be worried for the future.

According to the customs-statistics released in China, this country imported 33,219 tons in material of molybdenum, being equivalent to 40.5 million lbs. on Mo content base, in the first half of 2009 and China is said to have committed excessive imports of molybdenum. It is questioned whether Chile exports molybdenum for China in the second half of 2009 on a similar high pace to that recorded in the first half or not.

The international price of molybdenum oxide in August had risen to a high level of US$17.50 per lb. of Mo but, on the occasion which China suddenly held back to purchase molybdenum in August, the oxide price has weakened and is anticipated to fall to a lower level than US$15 in the near future. China is one of the largest countries in the world for consumption of molybdenum and is estimated to consume 125 million lbs. per annum of molybdenum. On the other hand, China is also one of major countries in the world to produce molybdenum. The reason, why China imported a considerable quantity of molybdenum in the first half of 2009, was due to the matter of cost in China, which is higher than that in overseas countries, and, from this point of view, steel companies in China determined to import molybdenum at lower prices than those in China by means of sacrificing molybdenum produced in China. Therefore, there is a possibility to react to this aspect.