Molybdenum and Stainless Steel about Mines and Markets

Transcription

1 Molybdenum and Stainless Steel about Mines and Markets Dr. Hans Imgrund Prospects for the development of the Russian stainless steel market Chelyabinsk, 22nd March, 2007 International Molybdenum Association Rue Père Eudore Devroye Brussels Belgium Tel: Fax: info@imoa.info

2 Molybdenum Properties and uses Sources Market observations 2

3 Molybdenum Properties and uses 3

4 First Use of Molybdenum 6% 25% 14% 5% 6% 9% 35% Total 2006: approx. 425 million lb 190,000 t 4 Source: IMOA Estimates Stainless Steel Constructional Steel Tool & High Speed Steel Cast Iron Superalloys Chemicals Mo metal

5 Molybdenum Metal & Alloys Properties Courtesy of Plansee High melting point 2610 C High hot strength High wear resistance Good corrosion resistance High temperature vacuum furnace 5

6 Molybdenum Metal & Alloys Glass melting electrodes High temperature furnaces Halogen lamps sealing and supporting wire Electronic industry high power semi conductor parts Mo spray wire and sputtering targets for coating applications Metal and plastic forming 6 Courtesy of Plansee Uses TZM piercing plug for rolling stainless steel tubes

7 Molybdenum in Alloy Steels Molybdenum is almost always used in combination with other metals including Chromium Nickel Vanadium Tungsten Niobium moly grade steels are usually required for high end applications 7

8 Effects of Molybdenum In tool steels (average Mo 0.8%) and in high speed steels moly enhances hardenability contributes to secondary hardening is an important constituent of the primary M6C-carbide (hardness > 2000 HV), which confers wear resistance 8 Courtesy of Boehler Uddeholm (average Mo content 5%):

9 Effects of Molybdenum in constructional steels & high strength low alloy steels-hsla (Mo content %) moly enhances 9 hardenability strength and toughness weldability elevated temperature strength resistance to sulfide stress cracking Oil rigg with drill pipe Orbis photo

10 Uses of moly grade constructional steels/hsla Applications cover the whole energy chain from raw meterial production through end use: Quenched & tempered (Q&t) CrMo seamless oil contry tubular goods. HSLA pipelines for Oil and Gas High temperature CrMo and CrMoV grades for petrochemical processing and energy generation. 10 Q & t CrMo engineering steels in automotive, shipbuilding, aerospace

11 Uses of moly grade constructional steels 11 Energy generation Oil & Gas transportation

12 Courtesy of Plansee Uses of moly grade constructional steels Gears made of CrMo carburising steel 12 for everything that moves

13 Effects of Molybdenum in stainless steels (average Mo content approx. 2.2%) moly improves corrosion resistance 13

14 Use of moly grade stainless steels About 10 % of world stainless steel production is molybdenum grade with average 2.2% Mo Moly grade stainless steels are invaluable in industrial processing such as chemical, petrochemical, pulp and paper oil and gas, power generation Corbis photo 14 Petrochemical Processing

15 Stainless steel has become the material of choice for many architectural uses around the world 15 Ulrich Otte (Stadt Düsseldorf), Germany Use of moly grade stainless steels Zollhof, Düsseldorf

16 Use of stainless steel - grade selection is critical. Nobody likes stainless steel which is rusting. Moly-grade stainless steels are resistant to de-icing salt or coastal air attack. 16

17 Use of moly grade stainless steel AISI 316 stainless steel with 2,2 % Mo has replaced aluminum at Brussels Atomium. 17

18 Molybdenum Sources 18

19 Global Production - Geographically 19% 7% Southamerica Northamerica China CIS & Mongolia 38% 36% Total 2006: 425 million lb 192,000 t 19 Source: IMOA; Adams Metals

20 Global Production Mine Types By-product West Primary West China & CIS 24% 60% 16% Total 2006: 425 million lb 190,000 t 20 Source: IMOA ; Adams Metals

21 Molybdenum from Primary Mining Calculation example: Ore grade 0.2% Mo yielding 1.8 kg/t Mo in concentrate Producing 1 t of Mo ctd requires 550 t of ore Annual production of 10,000 t Mo contd. in MoS2 concentrate requires mining and milling 5.5 million t of ore (approx. 20,000 t per day) The initial investment for a primary mine usually requires several hundred million US Dollars. 21

22 Courtesy of Climax Molybdenum Molybdenum from Primary Mining 22 Henderson operational schematic

23 Courtesy of Kennecott Utah Mine Corp. Molybdenum By-product from Copper Mining 23

24 Molybdenum By-product from Copper Mining Copper mines producing molybdenum as byproduct usually have ore grades falling between 0.5% and 1.5% Cu (5 to 15 kg/t) and between 0.01% and 0,05% Mo (0.1 to 0.5 kg/t). Major operations mine more than 50 million tons of ore per year, producing in excess of 200,000 t of copper and between 5,000 and 15,000 t Mo contained in MoS2 concentrate as by-product. The revenues from molybdenum are usually less than 10% of total sales. 24 Consequently the moly output of these mines follows the copper market rather than the demand for molybdenum.

25 Molybdenum supply structure 450 MM lbs. Molybdenum CIS-Mongolia By-product and Chinese China production increases Western By-Product significantly Western Primary Climax mine started: Source: Climax Molybdenum, presented at Ryans s Notes Conference 2005

26 Molybdenum Market Observations 26

27 Global Molybdenum Use 450 MM lbs Molybdenum AGR : AGR % 6.0 % Source: IMOA; Adams Metals

28 Molybdenum Price Driven by Energyand by China Demand $35 $30 $25 $20 $15 $/lb Mo $10 $5 $ Source: Metals Week Dealer Oxide Price

29 Molybdenum Price and Price of Crude Oil 1970 through 2005 $40 $/Barrel Crude Oil $30 $/lb Mo $20 $10 $ Source: Metals Week Dealer Oxide Price; Oilenergy.com

30 By-product and China-Production Increased Significantly Since 1990 Production (Million lb Mo) 350 China By-product Source: IMOA

31 Moly Price Was Below $ 4.00/lb in 10 of the Last 15 Years $20 $/lb Mo US $/lb Mo $16 $12 $8 $4 $ Source: Metals Week Dealer Oxide Price

32 Molybdenum Price and Western Primary Production $ $ $ $ $ mines mines Source: IMOA; Metals Week Dealer Oxide Price mines Million lb Mo 80 Production US $/lb Mo $16

33 Molybdenum Market: Demand and Price $16 US $/lb 340 $ $ $4 150 $ Source: IMOA; Metals Week Dealer Oxide Price Consumption (Million lb) $20

34 Molybdenum Market: Demand Change and Price $20 US $/lb Mo $ $12 25 $ $4-5 $ Source: IMOA; Metals Week Dealer Oxide Price Demand Change Million lb Mo 55

35 New Primary Molybdenum Mine Projects Mine Expected Annual Capacity Status Production Start Indicated (Million lb Mo) Roca Mines - Max Moly Canada 2.5 Under construction??? Bluepearl Davidson Canada 5 to 10 Feasibility study end 2007 PD Climax mine USA 20 to 30 Conditionally approved 2009 Mt. Hope Nevada USA 35 Currently being permitted 2009 Adanac - Ruby Creek Canada 10 Feasibility study 2009 A comprehensive list of new molybdenum projects, including a number of by-product expansions, can be found under 35 Source: Company Reports

36 Estimated Western Roaster Utilization Rates Western Roasters: Utilization of Available Time 120 % Utilization Source: Climax Molybdenum, presented at Ryans s Notes Conference 2005

37 Projection of Western Roasting Capacities 450 Europe Northamerica Southamerica Million lb Mo/Year Source: IMOA, Company Reports

38 Global Molybdenum Reserve Base 8% 16% Southamerica Northamerica China CIS & Mongolia 43% 33% Total 19 million metric tons Mo ctd. worth 100 years of present use 38 Source: US Geological Survey 2006

39 World Stainless Production & Molybdenum Use Source: IMOA; Adams Metals M tons Stainless Steel MM lbs Molybdenum

40 Everything that glitters is stainless and moly is happy to be part of it. 40. Courtesy of Outokumpu Thank you