China's May 1 removal of export taxes on molybdenum products has

　　boosted its exports of moly metal and scrap and left moly oxide and ferromoly

　　markets largely unaffected, sources said Monday.

　　The lifting of the 5% export tax on 99.9% moly metal had an immediate

　　impact, with supply in China tightening as demand for exports surged, mainly

　　from Europe.

　　June cargoes supplied by around 20 Chinese producers had sold out by

　　end May and July cargoes were already fully booked this week, with the

　　earliest supply currently seen available for August, a South Korean trader

　　said.

　　The volume of China's moly metal sales to Europe rose 20-30% after the

　　tax was lifted, the trader added.

　　Moly metal prices typically move in tandem with main feedstock Chinese

　　domestic moly concentrate prices, but the two have diverged in recent weeks.

　　Moly concentrate prices fell 5-10% over April-June to currently stand at

　　Yuan 1,000/metric ton unit, equating to $163 for 10 kg of moly contained in

　　one metric ton of concentrate.

　　On Monday moly metal was being offered at $25-$26/kg CIF Rotterdam for

　　August loading, compared with $24.60/kg CIF Rotterdam for July loading last

　　Thursday.

　　In contrast, moly metal demand has not risen in Japan, where it is less

　　widely used than in Europe. But the removal of China's export tax has fueled

　　interest in Japan for scrap moly, which is used in superalloys, sources said.

　　"There is definitely a drive among the Chinese suppliers to export more

　　99.9% moly wire and factory-origin clean moly metal thanks to the 15% export

　　tax removal. In the last month or so, we have received offers for 20-40 mt

　　container loads," a Japanese trader said.

　　Japanese end-users in the chemical industry have also been looking into

　　substituting scrap moly with moly metal, said a second Japanese trader, adding

　　no deal had been reached due to a gap between buyer and seller price ideas.

　　The second trader said he was seeking to buy at a 10% discount to

　　international moly or ferromoly prices, which sellers would not accept.

　　A third Japanese trader said a 5-10 mt lot of 99.8% scrap was offered at

　　$24/kg CIF Japan two weeks ago.

　　"Domestic supplies were $1.50/kg lower. Imports cannot win against

　　local supplies," a third trader said.

　　--Mayumi Watanabe, mayumi.watanabe@platts.com

　　--Edited by Wendy Wells, wendy.wells@platts.com

　　398--Molybdenum Prices - 22Jun15

　　New York (Platts)--22Jun15/1227 pm EDT/ 1627 GMT

　　Code USD/lb range Midpoint Change

　　Daily Dealer Oxide (MMAYQ00) 6.600- 6.700 6.650 -0.100

　　Running monthly average June Molybdenum Dealer Oxide 7.208

　　Weekly Averages and Volume

　　(update Fridays or last business day of the week)

　　Daily Dealer Oxide (MMAGQ00) 6.890-6.980 6.935 -0.335

　　Based on 320mt tons of business (0mt Japan, 160mt Europe, 60mt US,

　　0mt India, 100mt South Korea.