Green Technologies Tie Silver And Moly Price Together
As the use of molybdenum becomes diversified because of its use in solar panels, the price correlation between Silver and Moly is closing. The diversification of the uses for moly is beneficial as the price is not dependent solely on steel consumption.
By Michael Montgomery—Exclusive to Moly Investing NewsThe correlation between the price of molybdenum and demand for steel is well documented. It's the simple fact that the overwhelming majority of moly is used as a strengthening agent in steel alloys. When steel consumption falls off, so does the price of moly. But molybdenum is being used in an increasing number of green energy solutions, mainly solar panels and in the future maybe even in hydrogen fuel cells, as reported on Moly Investing News in May. The use of moly in solar panels is happening now, while the hydrogen technologies are still in early experimental phases. Copper indium gallium (di)selenide, or CIGS solar panels are commonly referred to as 'Thin Film' solar panels. These panels use molybdenum as an electrode base where the CIGS material can be deposited. CIGS panels are the most highly efficient and cheapest panels to produce. Another common material in solar technology is silver, as it is an excellent conductor of electricity and solar energy. The price correlation between silver and moly, both used in solar panels, has been tracking in the nearest relationship in 12 years as the demand for sustainable energy is rising. “The solar panel market is particularly strong at the moment, and there's been an uplift for both silver and molybdenum demand for panels… I see this strong correlation continuing, and I think it will tighten up going forward,” said Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne. The mathematical correlation between the two metals may be something to watch in the future especially as the demand for alternative energy grows. This is a good thing for molybdenum as it can stabilize the price, which historically has been dependent solely on steel used in large scale construction projects.