The fall of international moly oxide price last week creates a big gap which stimulates the Chinese import. According to our survey, there are more than 600 ton of moly metal arrived. The pressure on mines has increased exponentially, which received a great shock from the outside world. The basic situation is still oversupply, and the weak economy can hardly drive the moly market.

　　Producers who has kept their operation still run with no plan of suspension at the moment. As the pressure of inventory piles, most producers make active sales aggresively. According to our survey, the high grade moly concentrate is below 950-970 RMB/mtu, but seen no conclusion closed.

　　As far as we know, most minor ferromoly producers have shut down their operation, and some medium ferromoly producers are forced to reduce their output, or even pause to alleviate the pressure. All of them has no plan to resume the normal operation. However, ferromoly producers who are currently operating are mostly giants with certain position in the market, or have advantage in competition. The buyers are mostly regular customers.

　　The moly market can hardly be optimisitic at the end of the month though there is a surprising "+" sign from the international molybdenum market. Most participants hold pessimistic attitude saying that if Chinese buyers left, the international moly market would surely fall.

　　Focus One: Yesterday a steel mill from Zhejiang is holding a tender for about 300 ton ferromoly. The market anticipation is around 67,000 RMB/mt accepted. Besides, a steel mill from Jiangsu may hold a tender this week, which the result may hardly be positive. Steel mills from Shanghai and Shanxi may come into the market in two weeks, and the volume is generally the same as before.

　　Focus Two: The conclusion of molybdenum concentrate is little since mid-June. As the bidding price for ferromoly is getting lower, the concluding volume of moly concentrate is scarce. Mines might dump the inventory at low price as the pressure is heavy.

　　Focus Three: Contrast to the relative active Asian market, the European market is extremely quite as the market demand is weak. The rebounce of the price is only temporary.

　　Major steel mills are about to hold tender again, and the price is going to reshuffle. Under the attack from moly oxide import, there is nearly no conclusion done at home. As some customers choose to import moly oxide, the trend of mines is of great attention.