The molybdenum market enjoyed an optimistic sentiment with its price soaring in recent two weeks. This week the market were still reluctant ro sell at low prices, driving the molybdneum price in and outside China to rise.

　　1, Tight supply of molybdenum concentrate stimulates the trade price to rise sharply.

　　According to our statistics, as of yesterday comfirmed deals of moly concentrate had exceeded 6000 tons. This week large mining companies possessed limited spots, making it more difficult to satisfy demands from companies only with long-term contracts. Buying business was relatively active, and downstream sellers were enthusiastic about purchasing. 35-40% moly concentrate was reported concluded at cash 1610-1620 yuan/mtu, with small high-grade spot lots at 1660 yuan/mtu. It was harder to buy at low prices.

　　Based on actual deals, Comelan moly concentrate assessment had seen an increase on different grades. 35-40%，40-45%，45-50% and 50-55% concentrate assessment rose to 1610-1620yuan/mtu, 1620-1630 yuan/mtu, 1630-1640 yuan/mtu and 1640-1670 yuan/mtu respectively. Otherwise above 55% concentrate also rose to 1670-1690 yuan/mtu.

　　2, The molybdenum market outside China extends gains with the price of moly oxide moving up.

　　Chile’s Escondida copper mine will finish their negotiations on salary on July 24 without reaching any progress. The union reported that the BHP had rejected their request which raised the possibility of a continuous strike.

　　We also heard that POSCO was invited to tender for 150 tons briquettes and ferromoly respectively on Thursday, which might give support to the international market with limited spots.

　　Facilitated by the market, the trade price of moly oxide outside China continued to move higher. Yesterday the international moly oxide assessment rose to $11.7-11.85/lb, equivelent to RMB 2030-2057 yuan/mtu on import basis. While the European ferromoly assessment rose to $28-28.2/kg, equivelent to 11,4000-11,4900 on export basis.

　　3, Large steel mills start to tender making it harder to purchase at low prices

　　Yesterday a large steel mill in Shanxi province was invited to purchase 620 tons ferrmoly at 10,2000 yuan/mt on August 5 delivery , and the total volumes was expected to reach 1000 tons. However most of producers said that it was difficult to supply due to the tight delivery period. According to our statistics as of yesterday mainstream steelmakers had purchased about 6700 tons ferromoly.

　　Some companies had stopped offering temporarily or rised its assessment actively for the difficulty of purchasing. Otherwise some companies, source said, had offered at 11,6000 yuan/mt. The bulk market had seen more inquiries with some at cash 11,2000 yuan/mt and above. However the price of bulk cargoes also moved up as a result of the producer’s low intention to deliver.

　　4, An increase in material price drives the moly chemical and metal products to rise.

　　Many moly chemical companies still failed to provide confirmed assessment stimulated by the moly concentrate market and environmental supervisions. At present the first-class ammonium molybdate, ammnium dimolybdate and ammonium heptamolybdate assessment rose to 11,0000-11,2000 yuan/t, 11,2000-11,3000 yuan/t and 11,3000-11,6000 yuan/t respectively. Meanwhile the high-purity molybdenum trioxide assessment also rose to 13,5000-13,7000 yuan/t.

　　The moly product market sentiment was not active, but moly powder producers continued to lift its quotations up to 22,6000-23,0000 yuan/t as the material price rising.

　　In conclusions, sellers were apprantly reluctant to sell at low price. Recently the molybdenum price kept increasing in and outside China, injecting enthusiasm and changes to the market. Therefore we should not only pay attention to the opportunity but also to the changes in the market.