Supply of the molybdenum concentrate was tight as it was difficult to purchase. At the end of this month many steel mills flocked to make purchase, which drove the ferromoly price to pick up. The molybdenum market has seen the products price increase in brisk trade.

　　1, Tight supply of moly concentrate makes it hard to conclude deals

　　Recently most of large-sized mining companies were suffering with limited spots, especially high-quality concentrates were relatively tight. According to our statistics, as of yesterday the mainstream trading volumes of molybdenum concentrate have exceeded 6600 tons. Supply of the molybdenum concentrate was tight as it was difficult to purchase at low prices.

　　40-45% molybdenum concentrates in Jiangxi and Mongolia were reported booked at cash 1810 yuan/mtu, while the negotiated prices of 45% concentrates were heard at 1850 yuan/mtu, with sellers strongly unwilling to sell at low prices. High-quality moly concentrates imported from foreign countries were concluded at 1900-1950 yuan/mtu.

　　2, Large amount of tenders from steelmakers make it diffcult to purchase low-price ferromoly

　　The ferromoly prices were easy to climb due to tight supply of raw materials and large demand from steel makers. In light of our statistics, as of yesterday mainstream steel mills have tendered for more than 9000 tons ferromolybdenum.

　　In recent two days typical steelmakers have made purchase at prices ranging from 12,9000 yuan/mt to 13,1000 yuan/mt. We learnt that the ferromoly assessment had rose to 13,1000-13,7000 yuan/mt, and some deals have been booked at cash 13,5000 yuan/mt in the bulk market.

　　3, The moly chemical and deep-processing market remain stable

　　Currently many moly chemical companies have stopped to make delivery, and downstream companies were also cautious about purchasing. The market has seen increased inquiries, but actual transactions were less. The moly product companies tried to keep their quotations stable, with the first-clas molybdenum powders assessment maintaining at 25,5000-26,5000 yuan/t. The market seemed a little subdued influenced by the market demand.

　　In conclusion, the molybdenum prices obviously picked up affected by the release of the market demand. Tight supply of raw materials have stimulated inquiries in the market. Many participants indicated the molybdenum prices were expected to move higher.