Last week the molybdenum prices both in and outside China have seen a slight reduction. With many participants starting to make purchase, the molybdenum markets are expected to become brisker.

　　1, The international molybdenum market is likely to stabilize

　　The international molybdenum oxide assessment rose to $11.9-12/lb on August 17, almost in line with the price on August 10. While the European ferromoly unchanged at $28.8-29.2/kg on August 17, down $0.425/kg compared with that on August 10.

　　Since last week the international moly market have become brisker, with prices of oxide powder rising on last Thursday and Friday. At present the market foundamentals outside China remained good, and buying business have increased. As the summer vacation coming to an end, the develpoment of the market will attract enough attention from all participants.

　　2, Analysis of the market foundamentals in China

　　Currently supply of molybdenum concentrate maintained stable. Facing less pressures on sales, most of mining companies were busy with previous orders or long-term contracts, which led to limited spot lots in the market. Otherwise the market sentiment was good.

　　The ferromoly market still faced differences, and tenders from steel mills will play an important role in it. It is expected that large producers will come to make purchase in the second half of this month, which will furtherly invigorate the market. The transaction of ferromoly will also attract the whole market’s attention.

　　Under the support of the material market, large producers in the chemical and deep-processing market maintained stable, and its prices are expected to keep steady.

　　3, Paying attention to the influence of environmental protection on the molybdenum market

　　The central environmental inspections in Liaoning province still going on, exerting apprant impact on the molybdenum market due to the advanced digestion of inventories. As we learnt the environmental inspection will cover Shananxi province on August 20, please pay attention to the influence on the molybdneum market.

　　In conclusion, the molybdenum market began to stabilize after a short-term weakness. As buying orders increasing the international moly prices have taken the lead in stabilizing. At present the market foundamentals in China remained good and stable. Whether the market can turn around mainly depend on the market demand in the future.