The International Economics of Molybdenum

The molybdenum industry has been in a depression since the beginning of the decade. Real molybdenum prices are significantly reduced from 1979-1980 levels when there was a perceived capacity shortage and continued expectations of burgeoning demand. Primary capacity brought on stream since then has been unable to operate profitably and indeed, in light of high inventories and reduced demand, has been largely unnecessary. Structural changes in the molybdenum industry will be needed in the future to weed out superfluous capacity and to expand demand through new product applications.