News

Change time

Thompson Creek will return to the spot market?

The Company Thompson Creek Metals Co. Inc. plans to return to the spot market in the second half of 2010 for the sale of surplus stocks of molybdenum in North America, said CEO Kevin Lafri.
At Thompson Creek has accumulated 1.1 million pounds of molybdenum due to 5-week downtime in May at a metallurgical plant in Pennsylvania Langeloth. For the first 6 months of 2010 the total number of stocks of raw materials increased by 2.7 million pounds. «We will be active in the spot market in an attempt to reduce stocks, but how much we sell will depend on the price, as they do not see the need to get rid of stock if the price is not befitting," — said Mr. Lafri, adding that reserves can continue in 2011
About 70−80% of molybdenum company plans to sell in 2010 under the contract, and the remainder sold on the spot market. In the past year between contract and spot sales of the company was parity.
«Thompson Creek is going to carry out spot sales only at a certain price, and this price is higher than the current spot price of $ 15 per pound, — said one trader alloys. — So they're not going to bring down prices. «Prices for US molybdenum oxide began the year at around $ 13 per pound, and then rose to $ 18 per pound in March, against the background of more expensive stainless steel. Then — as a result of the correction — prices fell in June and July to $ 14 per pound, but has since risen again slightly — to about $ 15 per pound.
In II quarter, the company produced seven million pounds of molybdenum, compared with 6.7 million pounds in the same period of 2009. Net income was $ 126.5 million — in contrast to a net loss of $ 89.3 million in the II quarter of 2009. Revenues for the period amounted to $ 148.4 million (in II quarter 2009 — $ 74 million), thanks to 79% growth in the average selling price of molybdenum with a $ 9.41 per pound in the II quarter of last year to $ 16, 84 per pound.
In 2010, Thompson Creek is planning to produce 29−32 million pounds of molybdenum: 22−24 million pounds in a mine in Idaho and 7−8 million pounds per Endako Mine in British Columbia (Canada, 75% share belongs Thompson Creek).

See all news