The mining companies in China had seen an decline in productions in July mainly influenced by the rainning season and equipment problems, which stimulated downstream companies to make purchase. However most of mining companies possessed less stocks, driving the transaction price of molybdenum concentrate up. Demands for downstream products, including ferromoly, ammonium molybdate and molybdenum powder etc., had not experienced obvious changes. The market performed a little sluggish without apprant fluctuations on prices.

　　1, Sino-US trade war escalates that facilitates the international molybdenum price to rise.

　　The international molybdenum oxide assessment rose to $10.85-11/lb on July 13, up $0.175/lb from the price on July 6. While the European ferromoly assessment unchanged at $27.1-27.3/kg, up $0.5/kg compared with the price on July 6.

　　Trump’s government had made an announcement to impose 10% additional tarriff on about 20 billion dollars products exported from China. Almost all kinds of ferroalloy and many major molybdenum products were included, such as molybdenum concentrate, moly oxide, ferromoly, ammonium molybdate, molybdenum trioxide, moly powder, bars, rods and wires etc.. The influence on the subsequent market remained to be focusd on.

　　2, The molybdenum concentrate prices rise and the downstream products remain to be followed up.

　　Driven by buying orders inquiries for molybdenum concentrate had rised. Last week the transaction price of 45-50% moly concentrate had increased $30 yuan/mtu. Meanwhile many participants were reluctant to sell at low prices due to less spot goods in the market, plus it was also difficult to purchase at low prices.

　　At present mainstream ferromoly producers in China offered at 10,7000-10,9000 yuan/mt. Last week steel mills had purchased less ferromoly with its prices hovered at 10.6000-10,7000 yuan/mt, while the actual turnover of ferromoly remained to be followed up. The first-class ammonium molybdate assessment remained at 10,6000-10,7000 yuan/t, and the first-class molybdenum powder maintained at 22,3000-22,7000 yuan/t. Influenced by raw materials the moly chemicals and deep-processing market had slightly turned around. The market quotation performed firm, as well as orders and deals were expected to increased gradually.

　　In summary, tight supply of raw materials in short terms had given strong support to the confidence of the molybdenum market. The transaction price of molybdenum concentrate was easy to rise, but the downstream market was hard to reach unanimous affected by trade war and market demands. Overall the molybdenum market may see an stable and optimistic trend while divergences.