From the second week of July, the molybdenum price started to move up in the slack season mutually stimulated by many bebeficial factors and the tight supply of raw materials.

　　1, Supply of materials from mining companies shows tight

　　The overhaul of large mining companies had resulted in a tight supply of molybdenum concentrate, which driven its price rapidly rising stimulated by continuous buying orders. 45-50% molybdenum concentrate price had rose to 1590-1600 yuan/mtu from 1520-1540 yuan/mtu in only two weeks, showing no sense of slowing. Meanwhile above 55% moly concentrate was reported at cash 1700 yuan in Shanghai.

　　At present lots of large mining companies in China possessed less inventories, making it harder to satisfy demands from downstream companies. Producers were getting more reluctant to sell at low price aggravating the difficulty of purchasing. Overall it was easy for the moly concentrate price to rise instead of dropping.

　　2, Market demands maintain strong.

　　As of last week mainstream steel mills in China had purchased more than 5000 tons ferromoly, with its price exceeding 11,0000 yuan/mt in the second half of last week.

　　We learnt that large steelmakers in Shananxi and Hubei province were expected to make purchase continuely, still demanding for over 4000 tons. The total market demand maintained firm and strong, so there was still a possibility that some mills will come in advance or delay purchasing. The price of ferromoly was expected to rise under the influence of intensive purchase by mills later.

　　3, Depreciation of RMB facilitate the international molybdenum price to rise

　　The moly price outside China had achieved a delightful increase last week. The international moly oxide assessment rose to $11.5-11.7/lb on July 20, up $0.7/lb from the price on July 13. While the European ferromoly price also rose to $27.7-27.9/kg on July 20, up $0.6/kg from the price on July 13.

　　The international molybdenum price maintained at a high level, which gave support to the export of ferromoly plus with the depreciation of RMB. Large ferromoly producers were open to export with less delivery pressures. The market held an optimistic sentiment, unwilling to sell at low price.

　　In conclusions, the tight supply of materials had driven the molybdenum price to rise which, plus with rising demand and international moly price, jointly stimulated the market to move higher. This week the market was expected to become more active as steel mills continuing to make purchase.