Molybdenum prices sink to $10/lb.

Dec 10, 2008 | 09:42 AM | Mick Bowen

Molybdenum prices in the United States have hit bottom at around $10 a pound, according to several traders, but are not expected to rebound significantly, at least through the first six months of next year.

"I think prices have bottomed out," a trader said. "We're seeing more requests and more transactions completed. Any demand at all is promising, and it means buyers also think prices have hit bottom."

Molybdenum prices plunged by about two-thirds over a span of two to three weeks in October and November after reaching $34 a pound in late August.

"I was optimistic prices dropped so quickly and everyone cleaned out their inventory," the trader said. "It could've been worse; it could've been a slow death."

As molybdenum prices fell dramatically, Thompson Creek Metals Co. Inc., Toronto, shelved the development of greenfield and brownfield projects; Freeport-McMoRan Copper & Gold Inc., Phoenix, cut production and delayed the reopening of a previously producing mine; and Golden Phoenix Minerals Inc., Sparks, Nev., and partner Win-Eldrich Mines Ltd., Toronto, ceased operations at the Ashdown Mine in Nevada until market conditions improve.....