As tenders being invited the ferromoly market had experience a exacerbation of tight supply. Some steel mills even offered at 12,0000 yuan/mt, which driven the molybdenum price to pick up again.

　　The molybdenum market outside China also enjoyed an increase in prices under the influence of the Chinese market. Yesterday the international molybdenum oxide assessment rose to $11.95-12.1/lb, equivelent to RMB 2065-2091 yuan/mtu on import basis. While the European ferromoly assessment unchanged at $28.2-28.35/kg, equivelent to RMB 11,4400-11,5000 yuan/mt on export basis.

　　1, The transaction price of molybdenum material keeps moving higher.

　　Recently large-scaled mining companies suffered with tight supply leading to a continuous increase in the transaction price of concentrate in the bulk market.

　　Yesterday 40-45% molybdenum concentrates were reported concluded at cash 1650 yuan/mtu in Hunan province and 1670 yuan/mtu in Henan province respectively. We also learnt that part of 40-45% concentrate was booked at 1695 yuan/mtu and was gradually rising to 1700 yuan/mtu. Otherwise concentrate spots were heard at cash 1800 yuan/mtu in warehouse, Shanghai.

　　2, Steel mills started to make purchase resulting in tight supply of ferromoly spots.

　　According to our statistics, as of yesterday mainstream steel mills had tendered for about 8300 tons, with some price reaching 12,0000 yuan/mt under the stimulus of demands. At present some ferromoly companies even lifted its assessment up to 12,2000 yuan/mt. Although the bulk market had seen chaos, sellers were still reluctant to deliver at low prices. Overall the molybdenum market will maintain the upward trend in short terms.

　　The effect of environmental inspections will be had on the market in Liaoning province, which will result in a reduction or suspension in some companies, furtherly weakening the supply capacity of ferromoly.

　　3, Moly chemicals and deep-processing products also follow the upward trend.

　　Currently Moly chemical companies maintained its assessment firm with improving buying business, as few can supply moly chemical products and the concentrate price was also rising. Yesterday we learnt that the first-class ammonium dimolybdate was reported at 11,7000 yuan, while the high-purity moly trioxide reached at 14,0000 yuan/t.

　　With mainstream enterprises rising its prices, transactions had been conducted smoothly and the market performed quiet. Inquiries in the moly product market increased, but the transaction price had not seen apprant rise. However with material prices moving higher companies were increasingly willing to adjust quotations

　　In conclusions, the molybdenum price continued to climb facilitated by demands and the tight supply of material. Besides the environmental inspection and the rainy season also had impact on the moly price.