Strong demand of more than 4 percent a year and stagnant supplies will boost prices of molybdenum, prized for its ability to harden stainless steel.

Last year total global molybdenum production and demand at more than 420 million pounds was roughly balanced, according to the International Molybdenum Association.

"China has shut down over 300 moly mines," said Ian McDonald, executive chairman at Toronto-listed Thompson Creek Metals Company. "Exports from China have been declining this year ... Over the next few years we're set to have a good time."

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