Recently the molybdenum market both in and outside China had been experiencing weaknesses. Yesterday the international molybdneum oxide assessment fell to $12-12.2/lb, eequivelent to RMB 2091-2126 yuan/mtu on import basis. While the European ferromoly assessment unchanged at $29.35-29.5/lb, equivelent to RMB 12,0000-12,0800 yuan/mt on export basis.

　　As the tender price fell below 13,0000 yuan/mt the molybdneum market in China was filled with cautious atmosphere, with buying business decreasing gradually. The transaction price of moly concnetrate, oxide powder and ferromoly also slided downward.

　　1, The price gap of moly concentrate widens

　　The molybdenum concentrate had seen a widening price gap as the market suffered with apprant divergences. We understood that part of moly concentrate was reported booked at 1820-1860 yuan/mtu in Mongolia and Jiangxi province, while some was heard concluded in Jiangxi and Henan province at a price of 1750-1800 yuan/mtu.

　　Mining companies maintained stable, mostly were busy delivering previous orders. Not many offers had been made but the transactions remained good. Traders lacked confidence in holding stocks as some previous inventories flowed into the market. Downstream companies were cautious about making purchase, which caused the price of moly concentrate drift downward.

　　2, The bulk market is filled with cautious atmosphere as the tender price of ferromoly moving lower.

　　A steel mill in Mongolia tendered for 180 tons ferromoly at cash 12,7000 yuan/mt, while a mill in Tianjin province tendered for 200 tons at acceptance 12,9000 yuan/mt. A steelmaker in Jiangsu province purchased 120-150 tons ferromoly, but the price had not been announced. We learnt that it intended to purchase at 12,8000 yuan/mt (half cash and half acceptance).

　　At present large ferromoly producers offered at prices ranging from 13,0000-14,0000 yuan/mt. The market seemed relatively weak and transactions in the bulk market also appeared subdued mainly due to the lower tender price.

　　3, Transactions of moly chemical and deep-processing product perform weak

　　With the moly primary market becoming weaker, chemical and product companies also started to maintain its quotations stable. The first-calss ammonium molybdate and dimolybdate assessment unchanged at 12,6000-12,8000 yuan/mt and 12,8000-13,000 yuan/mt respectively. The first-class molybdenum powder assessment also remained stable at 25,5000-26,5000 yuan/t. We still confused about the development of molybdenum market in the future. Dowstream companies expressed cautious, and less deals had ben made in the market.

　　In conclusion, most of large producers indicated that the market will remain stable. Participants hold different judgements on the market. Otherwise as the market sentiment got cautious, high-prices deals had seen a decrease, with its price gap widening.