The international molybdenum price continued to climb. Yesterday the international molybdenum oxide assessment rose to $12.5-12.7/lb, equivelent to RMB 2177-2211 yuan/mtu on import basis. While the European ferromoly assessment range narrowed to $29.9-30.2/kg, equivelent to RMB 12,2000-12,3400 yuan/mt on export basis.

　　The molybdenum market was soaring, with its price hitting the highest level in recent years. Entering into August as mining companies resumed production, the tight supply of molybdenum concentrate will be alleviated gradually. However Influenced by the environmental inspection, steel mills were strongly demanding for ferromoly, which pushed the ferromoly price to rise. The market sentiment was good and stable.

　　1, The moly concentrate market pays attention to the delivery from large mining companies.

　　We understood that even if mining companies in Jilin, Mongolia and Hei Longjiang province had resumed production, large companies were so busy with previous orders which hindered them from providing quotations to the market. The bulk market gradually returned to rational level as seller slowed down their pace to purchase. Overall the market had witnessed limited spot lots, so sellers were reluctant to sell at low prices. At present ferromoly was reported booked at high prices, while the molybdenum concentrate price was relatively low. The market had seen both caution and optimism, please pay attention to the subsequent market.

　　2, The ferromoly prices continue to pick up.

　　Ferromoly producers were short of supplies mainly due to insufficient materials and environmental inspections. Currently the highest price of ferromoly made by steelmakers had reached 13,8000 yuan/mt. Bulk cargoes were heard concluded at higher prices, with some assessment reaching 14,2000 yuan/mt. The ferromoly market started to avoid risks mainly dominated by tenders and back-to-back deals, while the profit-taking phenomenon was still popular among traders.

　　We learnt the central environmental inspection might cover Liaoning province in August. The production in Liaoning province accounted for 60% of the total production in China, thus participants were focused on its influence on ferromoly industries.

　　3, Prices of moly chemical and deep-processing product obviously move higher.

　　The molybdenum material price maintained at high levels, and the market also remained strong. Moly chemical companies continued to lift its assessment up. The ammonium dimolybdate assessment rose to 12,8000 yuan/t, but actual buying business still remianed to be followed up. Some moly powder enterprises began to rise its offer at 25,5000 yuan/t. Besides companies aiming at producing molybdenum bar and rod also expressed strong intention to rise its quotations, but most of them failed to give definite assessment and make delivery on the basis of the market demand.

　　In conclusion, the ferromoly price maintained at high levels, but its production was still hard to release affected by environmental inspections and high processing profit margin. Sellers took cautious about making purchase. Overall the market foundamentals maintained stable and participants seemed rational.