Falling Price of Molybdenum Translates into Huge Losses for Armenia

12:25, May 7, 2015

Seda Hergnyan

Before the international financial crisis of 2007-2008, a ton of molybdenum sold for as high as US100, 000 on the London Metal Exchange.

Today the precious metal, one of the top exports of Armenia, goes for $17,500. Such instability over the years, and the downward trend in world prices, has a direct impact on Armenia's economy.

The three largest producers of molybdenum – China, the US and Chile – affect world market prices in a variety of ways.

China also consumes 30% of the molybdenum produced annually, mostly for steel production.

Many analysts say that due to the opening of new mines in recent years in China, the US, and Chile, supply has outstripped demand and molybdenum prices have dropped as a result.  Read more... (425 words)

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