postponed construction

Our view is 10 U.S. dollars / pounds of molybdenum should be at the bottom of the molybdenum price cycle. Despite the short term prices may decline still further, but the decline will be extremely short-lived, because as the financial crisis on the real economy in depth, molybdenum market further downward adjustment has been very limited, and the face of price dropping deep rate adjustment and financial pressure, the world's major producer of molybdenum production companies have taken action, but postponed construction, expansion projects put into production. For example, the U.S. Freeport-McMoRan Copper & Gold Inc. announced a reduction Henderson primary molybdenum mine production of 4,540 tons, which cut 25 percent, and plans to reduce byproductMolybdenum tube production. The company Climax mine put this plan in 2010, annual production capacity of 13,620 tons, but is now planned extension of 12-18 months, Canada Thompson Creek Metals Company also plans to postpone Davidson project, and prices plummeted and the credit crunch may also lead to Mt. Hope Project and Spinifex Ridge project delays.Domestic market, high export tariffs have led to exports of molybdenum in 2008 decreased significantly (1-10 months exports fell by 21.6% to 21,700 tons of molybdenum), but domestic production still maintain a high growth rate in (a -10 month rose 26% to 67,700 tons of molybdenum), supply growth led to the price of molybdenum Yindie 1-9 months of this year, but the overall volatility is not large, molybdenum fluctuations in 25.3-28.5 yuan / ton , molybdenum fluctuations in the 3650-4150 yuan / ton · degrees. Affected by the financial crisis and the domestic steel production is declining dramatically, the domestic price of molybdenum accelerated decline since early October, in which molybdenum prices from 253,000 yuan / ton down to 125,000 yuan / ton, down by more than half; molybdenum prices from 3650 yuan / ton · degrees down to 1,600 yuan / ton · degrees, down 56%.Molybdenum demand in the domestic market is extremely weak, the market prices fell sharply under the influence of domestic molybdenum production growth slowed even decline phenomenon will last two months of the year continues.