Statistic

China Molybdenum's moly concs output in H1 up 2% on year on better demand

Date 8/28/2017 4:51:41 PM

China Molybdenum, a top molybdenum miner and producer headquartered in central China's Henan province, posted a 1.9% year-on-year increase in its molybdenum concentrates output to 8,161 mt for January-June, on the back of improved demand, according to the company's interim report released on Monday.

     China Molybdenum's output was better than expected at the beginning of this year when the company had targeted to keep its molybdenum output flat from last year. The company produced 8,008 mt of molybdenum concentrates in the first half of 2016. And both volumes are calculated in 100% molybdenum content.

     Molybdenum concentrates and ferromolybdenum prices in China and molybdicoxide prices in the global market recovered substantially in H1 2017 because of less supply along with better demand in these two markets, China Molybdenumexplained in its interim report. The company is listed on both the Hong Kong and Shanghai stock exchanges.

     For H1 2017, China's molybdenum concentrates price rebounded 29.5% year on year to about Yuan 1,115/mt ($168/mt) and ferromolybdenum price went up21.9% year on year to Yuan 78,500/mt, and the global moly oxide price went up29.4% year on year to $7.96/lb, the company noted.

     China Molybdenum is confident that demand will recover from the summer lull over the rest of the year and further strengthen both domestic and global prices, according to its report. 

     Other than molybdenum, the company has also diversified into tungsten ,cobalt, niobium and phosphate mining projects overseas in the past few years, which together contributed to the 63.1% year-on-year surge in the company's net profit to about Yuan 835 million for H1 2017.

     As for copper, China Molybdenum expects the global oversupply to ease further in the coming months, developing towards a balanced market. Its own copper output from its 80%-held Australian mining subsidiary NPM reached18,910 mt in pure metal, down about 0.8% on year.

 Source:Reuters

Edited by SHMET