With releases of tenders from steel mills, prices of molybdenum concentrates and ferromoly ramped up again, due to limited inventories and the tight supply of concentrates. Affected by the increasing material prices, quotations of moly chemical and deep-processing products also went up gradually.

　　1, Prices of molybdenum concentrate and ferromoly rise sharply

　　According to our statistics, steelmakers in China have tendered for more than 6000 tons in last week. Both the huge tenders and insufficient stocks have driven the ferromoly price to soar. At the beginning of last week the ferromoly price remained at 125,000 yuan/mt, but it have appeared difficult to purchase at prices below 132,000 yuan/mt at the second half of last week.

　　Inquiries in the moly concentrate market was relatively active last week. Deals were heard concluded in many regions including Mongolia, Henan, Jiangxi, Hunan, Zhejiang, Jilin, Hebei and Shananxi province. Mining companies with limited spots faced difficulty in delivering, with high-quality concentrates prices reaching at cash 1950 yuan/t. Based on sales and productions of many mining companies, it will be hard to alleviate the moly concentrate market from tight supply, and prices are also expected to maintain at high levels.

　　2, Prices of moly chemical and deep-processing products pick up

　　Influenced by rising material prices and environmental inspections, the moly chemical prices also picked up gradually and its transactions remained good. At present the first-class ammonium molybdate and dimolybdate assessment unchanged at 128,000-130,000 yuan/mt and 130,000-132,000 yuan/mt. The high-purity moly trioxide assessment also remained stable at 156,000-158,000 yuan/t.

　　From the second half of July, the rising material prices have resulted in a large increase in the production cost of downstream enterprises. Producers strated to lift its quotations up after the consumption of low-price inventories. Prices of 0.18mm molybdenum rods rose to 240-250 yuan/kg, and molybdenum wires prices also increased by 50 yuan.

　　3, The international molybdenum market becomes brisk

　　Last week the international molybdenum market seemed a little weak. Transactions in Europe were less than before, with prices drifting down. Stimulated by the Asian market, transactions became more active and prices also strated to rally up.

　　The international molybdenum oxide assessment rose to $11.85-12.05/lb on August 24, almost in line with prices on August 17. While the European ferromoly assessment rose to $28.9-29.1/kg on August 23, bascially maintaining the same compared with that on August 17.

　　In conclusion, releases of the market demand drove the products prices to rise apprantly, while the tight supply of raw materials have stimulated inquiries in the market. Participants were optimistic about the subsequent market, and prices were expected to maintain at high levels.