Recently, the international molybdenum oxide rebounds at $5.5/lb, yet domestic mines are reluctant to sell as the price is far below the cost. There are more inquiries in and out, and the market sees more deals done at a slow rate.

　　The moly oxide sees more inquiries in Asia early this week. There are few inventories at ports, some deals are futuer goods.

　　A ferromoly producer from Liaoning says that there are no orders, and no plan for production resume. Some local producers have purchased some oversea oxide, some still have enough in stock.

　　Last round of import takes place at $6.2-$6.25/lb, this time is at $5.45-$5.5/lb, which equals to Yuan 800/mtu. Domestic moly mines reject this price, shown a strong reluctance. According to our survey, some mines hold offers due to the pressure from cost, as domestic moly concentrate price is at Yuan 880-900/mtu. As there is not enough spot goods avaliable, the domestic trade is going at a slow pace.

　　As the international price reaching the cost level, there will be more resistance against sliding. As there are few spot goods and little interest in future goods, activities are not spreading widely.

　　The stability at the moment is grounded on ever-sliding price, little spot goods in Asia and holding offers from mines. But the endurance needs more consideration. As the summer break is coming, the demand sees no recovery. Therefore, as Chinese mines are running on deficit for a long time, the price might be stable for a while, but with little chance of rebounce.