...and that metal is moly.

Salient points:

"China also has export quotas that restrict the amount of moly that can leave the country. China knows how important moly is to its growth. It wants to keep moly cheaper and readily available in China.

And China will need lots of moly. China is the world's largest producer of steel, by far. No one's even close. China produces nearly 40% of the world's steel. It makes twice as much steel as the No. 2 guy, the European Union, much of that steel will need moly.

So any rebound in moly is bound up in the China growth story. In fact, over the past five years, Chinese demand for moly has grown 27% annually, compared with only 4% globally. China alone now makes up 25% of the global demand for moly – about 110 million pounds.

As steel production rises, moly demand will also rise. In that, there is a long-term story worth hanging onto. China is only just entering its most metal-intensive phase of economic development . As China gets richer, its use of steel will rise at a much faster pace."

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