LMEWEEK-Fundamentals favour molybdenum over cobalt -CPM Group
* Molybdenum demand rising, supplies fail to keep pace * China's cobalt stocks to add downward price pressure
By Michael Taylor
LONDON, Oct 11 (Reuters) - Production of molybdenum will fail to keep pace with robust demand, resulting in firmer prices in the coming years, while China's large stocks of cobalt will weigh on prices, commodities research firm CPM Group said.
Between 2009 and 2012, consumption of molybdenum, an ingredient in making steel, is set to grow by 9.2 percent, Catherine Virga, director of research at CPM Group, said on Monday at the London Metal Exchange (LME) conference.
"There are few probable (molybdenum) projects expected until 2013, and even then there is a significant amount of risk to (those) projects," Virga said.
"Molybdenum prices might not see much of a (price) pick-up until re-stocking resumes in the first quarter of next year," she added.
On the European spot markets, molybdenum oxide MLY-OXIDE-LON traded at around $15.20 a lb, down from $18 a lb touched in April, its highest since late 2008.
China is the world's largest producer of molybdenum, accounting for about 35 percent of the market estimated at more than 425 million lbs. [ID:nLDE65G1BX] Continued...