Global Molybdenum Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Molybdenum Market Growth

Molybdenum is used as a catalyst in the petroleum industry to help remove sulphur from natural gas and refined petroleum products, which is propelling the market growth. As molybdenum has a very high melting point, it is used in the production of moly steel alloys that are used in various engines, hence aiding the industry growth. Moreover, it is also used along with cast iron to reduce carbon emission and produce cylinder heads, motor, and exhaust manifolds, which is consequently providing further impetus to the market growth.

The use of molybdenum disulphide, made from molybdenum and sulphur, to lubricate two strokes engines, bicycle coaster brakes, ski waxes, and bullets, among others, is further invigorating the growth of the molybdenum market. Moreover, it protects the engine from wear and tear due to its geothermal origin, which is positively impacting the industry growth. In addition, the use of molybdenum in stainless steel alloys for tanker trucks and pharmaceutical and chemical mills is also contributing significantly to the overall market growth. Further, the surging demand for stainless steel to produce stainless steel service pipes, which can address the global issue of water leakage, is also catalysing the market growth. Moreover, favourable government regulations which allow the use of stainless steel in the food and beverage industry are further augmenting the market growth.

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Molybdenum Market Trends

The corrosion resistance property of molybdenum makes it suitable for application in the construction of buildings that are located in harsh environments. A crucial trend of molybdenum market is that the governments of developing economies, such as India and China, are investing significantly in the construction of roads, trains, power plants, and water systems, which is increasing the demand for energy production. In addition, robust demand for steel alloys in China and India owing to mass urbanisation and the escalating construction of residential and commercial spaces is expected to aid the market growth for molybdenum. Further, the sustainable property of stainless steel allows for its use in the development of green cities and buildings, which is expected to invigorate the market growth.

The robust growth of the aviation industry is increasing the demand for superior aircraft whose turbine engine can provide high performance and efficiency. The use of molybdenum to withstand high thermal, mechanical stress, reduce vibration, and improve the comfort of both passengers and the pilot, is augmenting the molybdenum market opportunities. In addition, solid rocket motors that use various speciality compounds to improve thrust and increase propulsion through vanes and nozzles use molybdenum which in turn is aiding the market growth. As molybdenum has outstanding thermomechanical and chemical properties and can easily withstand harsh weather, it is used to support jet engines and landing systems, which is further catalysing the market growth.

Recent Developments

As per the molybdenum market dynamics and trends, global production of molybdenum rose by 1% in Q2 2024 to 159.2 million pounds, with China leading the output, showing a 4% increase from the previous quarter. Despite this production rise, global usage of molybdenum dropped by 2% in Q2, though it remains 1% higher than the same quarter last year. This decline in usage contrasts with rising demand in specific applications, such as high-strength steel for infrastructure projects, which has fueled sporadic price increases due to supply-demand imbalances.

Industry Outlook

Global Production and Use of Molybdenum

As per the U.S. Geological Survey, China continued to lead globally, increasing molybdenum production from 95,300 tons in 2021 to 100,000 tons in 2022. The United States increased its molybdenum production from 41,100 tons in 2021 to 42,000 tons in 2022. Armenia slightly increased its production from 7,760 tons to 7,800 tons. As per the molybdenum market industry analysis, Canada’s production decreased from 1,390 tons to 970 tons. Chile’s production dropped significantly from 49,400 tons to 44,000 tons. Iran’s production rose from 3,100 tons to 3,500 tons. The Republic of Korea’s production remained stable at 408 tons in 2021 and 400 tons in 2022. Mexico maintained its production at 16,300 tons in 2021 and 16,000 tons in 2022.

Peru’s production slightly decreased from 34,100 tons to 32,000 tons. Russia's production remained constant at 1,700 tons. In terms of reserves, China leads with 3,700 thousand metric tons, the United States has 2,700 thousand metric tons, and Peru holds 2,400 thousand metric tons, which contributes to the growth of the molybdenum industry. Other notable reserves include Chile with 1,400 thousand metric tons and Russia with 430 thousand metric tons. The global reserves total approximately 12,000 thousand metric tons in 2022.

Data provided by the International Molybdenum Association (IMOA) illustrates that in 2023, the primary use of new molybdenum was in engineering steels, accounting for 38% of the total volume. Stainless steels represented the second-largest use at 25%. The chemicals sector consumed 13% of the molybdenum, reflecting its importance in various chemical applications and boosting the molybdenum industry revenue. Foundries and tool steels each accounted for 8% of the total use, indicating significant demand in these industrial sectors. Mo-metals, which include applications like electrical contacts and filaments, used 5% of the total molybdenum. Nickel alloys, which benefit from molybdenum's corrosion resistance properties, comprised 3% of the usage.

Use of Molybdenum in Diverse Industries, Recyclability Potential, and Strong Supply Chain Impacts the Global Molybdenum Market Outlook.

• Molybdenum’s ability to enhance strength and corrosion resistance makes it essential for the steel industry. It also finds application in chemicals, foundries, electronics, and aerospace sectors.
• High recyclability rate, contributing to sustainability and reduced environmental impact.
• Established mining and refining capabilities across major producing countries ensures stable supply of molybdenum.

The Global Molybdenum Market faces Several Challenges, Including Price Volatility, Health and Safety Concerns, Economic Downturns, and Geopolitical Risks.

• Molybdenum prices can be highly volatile due to fluctuations in demand and supply, affecting demand for molybdenum.
• Handling and processing molybdenum involves health and safety risks, requiring stringent regulations.
• Mining and refining processes have significant environmental impacts, leading to regulatory and community resistance.
• Global economic instability can lead to reduced industrial activity, impacting molybdenum demand.
• Political instability in key producing regions can disrupt supply chains and affect market stability.

Advancing Production Technology and the Development of New Applications for Molybdenum Provide Opportunities for the Market

• Innovations in extraction and processing technologies can improve efficiency and reduce costs.
• Growing industrialization in emerging markets increases the demand of molybdenum market.
• Increasing use of molybdenum in renewable energy technologies and electric vehicles offers new growth avenues.
• Collaborations and partnerships can enhance market reach and innovation capabilities.

Competitive Factors Impacting the Global Molybdenum Market Analysis

• Companies providing high-purity molybdenum with consistent quality standards can command premium prices and secure long-term contracts.
• Companies with significant production capacity can meet large orders and respond to market demand fluctuations more effectively.
• The ability to quickly scale production up or down in response to market conditions provides a competitive edge.
• Producers located near key consumer markets can reduce transportation costs and delivery times, providing an advantage over distant competitors.
• Companies employing advanced extraction and refining technologies can improve yield, reduce environmental impact, and lower costs, which impacts molybdenum demand forecast.
• Innovation in molybdenum applications, such as in electronics or renewable energy, can create new market opportunities and demand.
• Adhering to stringent environmental regulations and adopting sustainable practices can enhance brand reputation and meet customer requirements.
• Securing long-term supply agreements with major industrial consumers provides revenue stability and predictability.

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Molybdenum Industry Segmentation

Molybdenum is a silvery-white element that is ductile and highly resistant to corrosion. It is a transition metal that is recovered as a by-product of tungsten and copper mining. It is used in the production of alloys to increase their hardness, electrical conductivity, resistance, and strength. It is also an essential trace mineral, which is naturally found in milk, cereal grains, leafy vegetables, and organ meats, among others.

The major product types of molybdenum are:

• Steel
• Chemical
• Foundry
• MO-Metal
• Nickel Alloy
• Others

The market can be broadly categorised on the basis of its end use into:

• Oil and Gas
• Chemical and Petrochemical
• Automotive
• Industrial Usage
• Building and Construction
• Aerospace and Defence
• Others

The regional markets of molybdenum are:

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East and Africa

Molybdenum Market Share

The oil and gas sector is expected to grow at a CAGR of 4.6% in the forecast period, boosting the molybdenum demand. The oil and gas sector is a major driver for the market due to molybdenum's essential role in strengthening steel alloys used in pipelines, drilling equipment, and offshore platforms. Molybdenum’s resistance to high temperatures and corrosion makes it ideal for oil and gas applications, especially as new drilling and extraction technologies demand higher durability.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global molybdenum market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Anglo American plc
• Antofagasta plc
• China Molybdenum Co., Ltd
• Codelco
• Freeport-McMoRan Inc.
• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

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Molybdenum Market Regional Analysis

The Asia-Pacific region holds the major molybdenum market share globally, with China being the primary driver of demand. India, China, and Japan are expected to exhibit 5.9%, 5.0%, and 3.1% CAGR in the forecast period. This is largely due to the extensive use of molybdenum in steel production, construction, and electronics manufacturing in the region. As Asia-Pacific countries continue to grow their infrastructure, automotive, and industrial sectors, demand for molybdenum remains strong, especially in high-strength and corrosion-resistant steel alloys. The region is also focusing on renewable energy, which uses molybdenum in applications like solar panels and wind turbines, adding further growth momentum to the market.

Key Price Indicators of the Global Molybdenum Market

Supply and Demand Dynamics:

Imbalances between supply and demand significantly influence molybdenum prices. High demand with limited supply typically drives prices up.

Mining Production Levels:

Changes in production output from major mining countries directly impact global supply and pricing.

Stockpile Levels:

The amount of molybdenum held in stockpiles by producers and consumers can affect market prices, with higher stockpiles potentially leading to lower prices as well as reducing molybdenum demand growth.

Energy and Production Costs:

Fluctuations in energy costs and production expenses in mining and refining processes impact the cost of molybdenum.

Currency Exchange Rates:

Variations in exchange rates, particularly between the currencies of major producing and consuming countries, can affect pricing.

Geopolitical Events:

Political instability, trade policies, and tariffs in key producing or consuming countries can lead to price fluctuations.

Molybdenum Market Report Snapshots

Molybdenum Market Size

Molybdenum Market Growth

Molybdenum Companies