Platts reported that China's spot molybdenum oxide prices last week moved up to around USD 33.40 to USD 33.60 per short tonnes on a CIF basis compared with USD 33.20 to USD 33.40 per short tonnes quoted a week ago as producers and traders sold less.

One China based producer said that his company sold 20 tonne of molybdenum powder to a European trader at USD 33.80 per short tonnes CIF Rotterdam, prompt shipment. He said that "Buying inquiries have picked up, but we have only limited spot material to offer. Export supply remains tight. We are now offering at around USD 34 per short tonnes but there are no buyers.”

Another Chinese producer said that he had sold one container of molybdenum oxide to a European trader at USD 33.50 per short tonnes CIF Rotterdam. Prices are likely to hold strong in the near term and we are in no hurry to sell.

A source added that mining activity in northern China was to be restricted further closer to the Olympics due to environmental concerns. The source said that "Mining activity may have to be halted for some time to ensure a clean environment before and during the Olympics and less raw material is expected to come from local mines, especially for those near Beijing.”

Another source said that despite higher molybdenum prices, Chinese sources said ferromolybdenum prices this week were steady at around USD 78 to USD 78.50 per kilogram FOB China, unchanged from a week ago.