Metal Firm Increases Profit on Demand

China Molybdenum Co, the nation's second-biggest producer of the metal used in steel making, said first-half profit rose 13 percent because of higher prices.

Net income rose to 1.24 billion yuan (US$181 million), or 0.26 yuan a share, in the six months ended in June, from 1.1 billion yuan, or 0.27 yuan a share, a year ago, the Luoyang, Henan Province-based company said in a statement to the Hong Kong stock exchange Sunday. Sales rose 16 percent to 3.33 billion yuan.

Molybdenum has jumped more than fivefold since early 2004 as demand for corrosion-resistant pipes grows. China may increase consumption of molybdenum by 24 percent this year, larger rival Jinduicheng Molybdenum Co said in June.

China Molybdenum's shares have fallen 68 percent this year, compared with the 27-percent decline in the benchmark Hang Seng Index, Bloomberg News said.

A global shortfall for the silvery-white metal will last three years, Wu Wenjun, executive director manager for China Molybdenum, said on April 10.

Mines in Inner Mongolia and Henan will take time to expand capacity, he said.

Source: CRIEnglish