Global Molybdenum (Mo) Market Research Report: Forecast (2024-2030)

Market Definition

Molybdenum or Mo is a chemical element with a silvery-white appearance. Mo is a lightweight element with the atomic number 42, with properties such as a high melting & boiling point, low coefficient of thermal expansion, and corrosion resistance. These properties enable its extensive use in steel, energy & power, electronics, chemical & petroleum, and oil & gas industries. The element is usually found in nature in its oxidized form instead of elemental.

Market Insights & Analysis: Global Molybdenum Market (2024-30):

The Global Molybdenum (Mo) Market size was valued at around USD 5.32 billion in 2023 & is anticipated to reach around USD 6.70 billion by 2030. The market is also estimated to grow at a CAGR of around 3.92% during the forecast period, i.e., 2024-30. The Global Molybdenum Market has seen a rise in the production volume of the element rising from 575.4 million pounds (mlbs) to 627.4 mlbs. Asia-Pacific holds the biggest pie in terms of production volume with China dominating the market. China has significantly increased its Molybdenum production output since 2019 from 205.6 mlbs to 281.8 mlbs in 2023. The second largest region of Molybdenum production is South America. Since 2019, the South American region has observed a decline of 10% in the elements production. While at the same time, element production in the rest of the world fell by 3%. The primary reason for this decline is attributed to rising environmental regulations and falling ore grades.

Since 2019, the global molybdenum consumption has increased from 576.3 mlbs to 630 mlbs in 2023. The Asia-Pacific region stands as the biggest user of the element, with China holding the biggest pie. During the same period, Chinese consumption of Mo has seen a rise of 26% from 220.9 mlbs to 278.5 mlbs in 2023. Europe, the second largest user of the element, has shown a fall of 8%, with the rest of the world showing a rise of 3%.

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The consumption of molybdenum is mainly due to its extensive usage in iron & metal primarily in alloy manufacturing of various attributes. According to the International Molybdenum Association (IMOA), in 2024 more than 50% of the global usage of the element comes from the iron & steel industry only, with engineering steels, stainless steel, and tool steel accounting considerable share of total global molybdenum consumption. This highlights that on the consumption front, steel products have led the Global Molybdenum Market. In 2023 the global steel production stood at 1,888.2 million metric tons according to the World Steel Association. China holds the largest market share of 53.9% in steel production. The fall in interest rates and the economic recovery that follows it give a positive outlook for the steel demand in the coming years. According to the World Steel Association's short-term outlook, the global steel demand will rise to 1,646.7 million metric tons in 2025 and is estimated to grow to 1,837.2 million metric tons by 2030.

Global Molybdenum Market Driver:

Increasing Global Steel Production – The rise in steel production is the primary driver for molybdenum usage in the Global Molybdenum Market, it is to the point that 71% of the molybdenum was consumed in the production of various steel grades, amounting to 447.3 million pounds (184,058.4 metric tons) in 2023. The steel production will pick up its pace with the rise in demand. According to the World Steel Association, the short-term forecast for steel demand accounts for an increase of 2.96% from 1,599.4 million metric tons in 2023 to 1,646.7 million metric tons in 2025. Also, as the inflationary pressure on the global economy wanes due to high interest rates by the central banks over a prolonged period, any interest rate cut can lead to economic recovery boosting the steel demand. For instance,

• In June 2024, the European Central Bank lowered its interest rate by 25 basis points. The expectation for this resulted in a slight increase in production from April on a YoY basis. However, with the announcement, a significant rise in steel production of 5.1% on a YoY basis for June was observed in the European Union, this continued with the increase of 5.7% for July month yearly.

The decision to cut interest rates by major economies as the inflationary pressure declines can promote massive recovery in the global economy. This can lead to a rise in steel demand and production leading to growth in the Global Molybdenum Market.

Global Molybdenum Market Opportunity:

Increasing Usage of Advanced New-Age Technologies to Offer Ample Growth Opportunities – The world has become more digital due to the adoption of the latest technologies and products. Such technologies and products rely heavily on computer chips and semiconductors for their processing power and computation speed. As the requirement for a chip and semiconductors increases leading to a rise in the demand for molybdenum due to its extensive usage in them. This is mainly due to its properties like high thermal and electrical conductivity, low thermal expansion, and thin-film resistivity. For instance,

• In February 2024, Lam Research found that the thin film resistivity property of molybdenum makes it a great choice to replace Tungsten in Semiconductors.

The adoption of advanced technologies such as the Internet of Things (IoT), 5G, and others continue to evolve the world we live in and industry dynamics provide an optimistic future outlook for growth in the Global Molybdenum Market over the forecasted period. The world’s path toward digitalization has led to the reliance on chips and semiconductors for processing power and computation speeds, making them the backbone of this digital world.

Global Molybdenum Market Challenge:

Rise in ESG Norms & Regulations Impacting the Production – The rise in the global challenge of climate change due to massive greenhouse gas emissions, pollution, global warming, and extensive destruction of biodiversity has prompted governments to take necessary actions by setting up emission targets and implementing regulations for strict ESG norms and corporate governance for companies to comply with to smoothly run their business operations. The development of such scenarios can greatly affect the production capacity of molybdenum globally but will also introduce volatility in the market, and also negatively impact the margins of the companies, raising the questions of feasibility of running the production operation of the element. For instance,

• In June 2023, Antofagasta’s mining division Zaldívar submitted an Environmental Impact Assessment application to further extend their mining rights to 2051, along with the plan to shift the mine’s water source from the local aquifer to either seawater or water provided by third parties. Authorities allowed the company to mine and extract water till 2025.

Apart from this, the unfolding of extreme weather conditions like wildfires, heatwaves, extreme rainfall, and flooding due to climate change can adversely impact production capabilities. These scenarios present a significant challenge for the growth & expansion of the Global Molybdenum Market during the forecasted period.

Global Molybdenum Market (2024-30): Segmentation Analysis

The Global Molybdenum Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Application:

• Electric Conductivity
• Imaging
• Metal Alloys
• Catalyst
• Others

Metal Alloys are currently the most dominant segment based on application for the Market and will continue their dominance over the forecasted period. This is because molybdenum finds extensive use in the iron and metal industry. According to the International Molybdenum Association (IMOA), in 2023 out of the total global molybdenum production ~80%, that is, 504 mlbs of molybdenum found its application usage in the metal industry for alloy manufacturing. Steel and its variants consumed ~71% of the total molybdenum produced in the world, with engineering steels, stainless steels, and tool steels consuming 239.4 mlbs, 157.5 mlbs, and 50.4 mlbs respectively. Apart from this, Mo-metals accounted for 5% which is 31.5 mlbs, and nickel alloys for 3% which stands to 18.9 mlbs of the total molybdenum use across the world.

Based on End-User:

• Oil & Gas
• Chemical & Petrochemical
• Electronics
• Iron & Steel
• Energy & Power
• Others (Aerospace & Defense, etc.)

The iron and Steel industry is the biggest consumer of Molybdenum and will continue to hold its position over the forecasted period as well. Various factors are responsible for such developments. Firstly, the massive consumption of the element in the Iron and Steel industry accounts for more than 50% of the total global Mo production. Secondly, fewer substitutes can replace the Mo for its wider industrial application. Lastly, there are adequate amounts of molybdenum supply available in the world due to its identified resources it stands at 20 million tons.

Global Molybdenum Market (2024-30): Regional Projections

Geographically, the Global Molybdenum Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific will remain the leading player in the Global Molybdenum Market, which is mainly due to China. China is the largest producer of Molybdenum globally. For instance,

• In April 2024, The International Molybdenum Association (IMA) stated that in FY 2023, the global molybdenum production volume was at 627.4 million pounds, out of which, China alone produced 281.8 million pounds, and also consumed 278.5 million pounds of it.

China is the largest producer of Mo mainly due to the country holding its large reserves and considers it a strategic resource. According to the United States Geological Survey, four countries, China, the United States, Chile, and Peru have 92% control of total molybdenum resources. On the demand side, there will be a large consumption of Mo due to China’s need for high-end steel variants for further high-quality infrastructure development. According to Antaike China, investments in wind power will require 300,000 tonnes of molybdenum by 2050. The Chinese government's 14^th Five-Year Plan involves massive upgradation of the manufacturing industry. The development of this will lead to the revitalization of the steel industry, leading to an increase in the production of special steel in the country.

Global Molybdenum Industry Recent Development:

• May 2024: Anglo American is planning to invest more than USD 80 million in Peru. This step is regarding the company looking to add six-ore floatation cells for better copper and molybdenum recovery.

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1. Global Molybdenum Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
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