An upsurge in Chinese demand and imports of minor metal molybdenum have revitalised prices of the stainless steel ingredient, but a reversal is expected as local production ramps up after disruptions.
Molybdenum oxide prices are up nearly 10% to around $7.8 a lb since July’s three-and-a-half-year low at $7.1 a lb.
Disruptions in China include Yichun Luming Mining, producing around 30-million pounds a year, which was ordered to suspend molybdenum output earlier this year because of a tailings dam that leaked and contaminated local rivers.
An official at the Yichun emergency management department said Luming was preparing to restart but was unable to give a date. Luming did not respond to an emailed request for comment.