Moly heads for 6th straight deficit, record prices: BMO
BMO Capital Markets forecasts a sixth straight year of molybdenum supply deficit in 2027, driven by strong demand and limited new production. Prices surged 43% to $41.97 per lb. this year, with record highs expected. China's export restrictions and limited global supply options exacerbate the deficit, according to BMO analysts.
How this was made
The 30-second read
Why it matters
The shortage creates a supply‑demand imbalance that may lift prices and benefit miners with dedicated molybdenum assets.
Market read
First analyst call linking a listed miner to the emerging molybdenum shortage, offering a potential trade idea.
What to watch
Potential demand slowdown if high‑temperature alloy users face cost pressures from rising molybdenum prices.
Background
BMO Capital Markets reports a sixth consecutive year of global molybdenum deficit, forecasting record prices in 2027.
Ticker impact
BMO identifies Centerra Gold (CGAU) as a preferred miner to benefit from the projected molybdenum deficit and record prices.
likely upward pressure as investors seek exposure to molybdenum supply constraints.
Analyst report is the first public recommendation linking Centerra to the emerging molybdenum shortage; no other catalysts are mentioned.
Market effects
Molybdenum shortage may boost other miners with by‑product exposure and related steel‑alloy producers.
North American producers like Centerra could see relative advantage over Chinese peers facing export restrictions.
Record molybdenum prices could affect aerospace, energy and defense supply chains worldwide.
Counterpoint
If new Chinese projects come online earlier than expected, the deficit could ease, limiting upside for Centerra.
Key entities
- companyCenterra Gold
North American miner with Thompson Creek molybdenum operation.
- analystBMO Capital Markets
Provider of the report highlighting the molybdenum deficit.
