Global molybdenum production exceeded consumption again in 2015, but the surplus was down on the previous year as both supply and demand fell from 2014 levels, according to figures released Tuesday by the International Molybdenum Association.
Global production of molybdenum slowed in 2015, reaching a total of 515 million lb, down from the previous year's record of high of 578.5 million lb, while global molybdenum usage at 506.5 million lb was also down from the previous year's record total of 559 million lb.
Supply thus exceeded demand by 8.5 million lb last year, compared with a surplus of 19.5 million lb in 2014.
"These figures reflect the impact of the oil price drop and its associated effects, with both production and use slowing from record highs in 2014," said Tim Outteridge, IMOA's secretary-general, in a statement.
"Despite a disappointing year, the long-term forecast for demand is still buoyant," he added.
China was the largest consumer of molybdenum in 2015 at 177.6 million lb, compared with 202 million lb in 2014, while Europe recorded the second-biggest share with 132.6 million lb, down from 143.4 million lb in 2014.
Usage in the US was 53.8 million lb, closely followed by Japan at 52 million lb. Usage in the CIS was 21.5 million lb, with other countries together totaling 69 million lb, IMOA noted.
China was also the biggest molybdenum-producing area in 2015, although output decreased to 181.6 million lb, down 9% from 200.6 million lb in 2014. Production in South America increased by 4% to 152.4 million lb from 145.9 million lb in 2014, while North America slipped to the third-largest producing region after production fell from 193 million lb in 2014 to 140.1 million lb in 2015.
US miner Thompson Creek Metals idled two North American primary molybdenum mines during the period in question.
Thompson and its Japanese joint venture partner Sojitz Moly Resources agreed to place the Endako mine in British Columbia on care and maintenance effective July 1, 2015, due to continued weakness in the molybdenum market.
Operations at the mine were temporarily suspended at the end of 2014. A the same time, the company's Thompson Creek mine in Idaho was placed on care and maintenance.
Production in other countries increased by 5%, rising from 39 million lb in 2014 to 40.9 million lb in 2015.
For the fourth quarter of 2015, consumption of molybdenum marginally exceeded production, IMOA figures showed.
Total molybdenum production fell to 120.5 million lb in Q4 from 129.2 million lb in Q3. Production in South America increased from 38.1 million lb to 41.5 million lb, a 9% increase which put the region ahead of China as the biggest quarterly producer.
Production in China fell by 14% from 46 million lb in Q3 to 39.5 million lb in Q4, North American production fell from 35.1 million lb in Q3 to 28.8 million lb in Q4, while production in other countries increased slightly from 10 million lb in Q3 to 10.7 million lb in Q4.
Global usage fell slightly to 123.7 million lb in Q4 from 124.3 million lb in Q3. Usage in China decreased from 44.1 million lb in Q3 to 43.1 million lb in Q4, while usage in Europe increased from 31.6 million lb to 32.5 million lb. Usage in the US and Japan stood at 13.2 million lb and 12.8 million lb, respectively, in Q4.
The Platts daily dealer molybdenum oxide assessment averaged $6.63/lb for the full year 2015, down from $11.38/lb in 2014. The Q4 2015 average was $4.82/lb, down from $9.30/lb in the year-earlier period and from $5.82/lb in Q3.
