At the beginning of this week the molybdenum market in China remained good and stable. Most of mining companies with limited spots chose not to offer, leading to increased transaction prices in the bulk market. Ferromoly producers tried to maintained its quotations at a high level, while the bulk market has experienced a kind of chaos. Moly chemical and deep-processing producers also continued to raise its quotations.

　　1, Low-price molybdenum concentrates are hard to find, transaction prices remain at high levels

　　This week many mining companies in Mongolia and Hei Longjiang failed to resume productions, which resulted in tight supply of moly concentrates. The bulk market seemed good, with sellers apprantly unwilling to deliver at low prices. As we learnt 40-45% molybdenum concentrates were reported booked at 1830-1860 yuan/mtu in Henan province, while lots of producers intended to sell at 1900 yuan/mtu. The high-quality concentrates were heard concluded at cash 1950 yuan/mtu.

　　2, Ferromoly quotations continue to pick up, transactions remain to be done

　　Last week a large-sized steel mills in Shanxi province planned to invite tenders for 1000 tons on July 27, which were forced to be cancelled out of some reasons. Participants indicated that it will possibly come to make purchase in the first half of September. According to our statistics, as of yesterday mainstream steelmakers in China have tendered for 8000 tons ferromoly. The market demand was healthy.

　　The market seemed relatively brisk currently, with some sellers offering at 145,000 yuan/mt, but parts of large producers still refused to make offers. Participants held different opinions on the bulk market, with steady transactions. Overall the ferromoly market will steadily moved forward.

　　3, Prices of moly chemical and deep-processing products keep rising

　　Early in this week many moly chemical enterprises were reluctant to sell at low prices, and still not to provide definite quotations. The first-class ammonium molybdate assessment rose to 130,000 yuan/t and above, and some chemical companies offered ammonium dimolybdate at 133,000-135,000 yuan/t. The high-purity molybdenum trioxide assessment also increased to 160,000 yuan/t. Affected by the material market, molybdenum powders companies have lifted its quotations up to 260,000-265,000 yuan/t.

　　Large-sized producers working on molybdenum wires from last Friday have started to raise quotations on the basis of the material prices, with molybdenum strips and rods prices reaching 275,000 yuan/t and 340 yuan/kg respectively. Quotations of molybdenum wires also increased by 50 yuan. Under this circumstance many companies have followed this trend and adjusted quotations, but actual deals remained to be closed.

　　In conclusion, the molybdenum market seemed active and prices were easy to ramp up. The sentiment was good, please pay attention to subsequent transactions.