Molybdenum Market - Forecast(2023 - 2028)

Molybdenum Market Overview

The molybdenum market size is expected to reach US$6.4 billion by 2027 after growing at a CAGR of around 4.5% from 2022 to 2027. The molybdenum is a silvery-white metal and belongs to the transition metal series and is highly resilient, lightweight, durable, and offers low thermal expansion. It is used in creating superalloys or high-strength alloys. The molybdenum is added to the cast iron and steel offers improved strength, weldability, hardness, and elevates the corrosion resistance of steel. The molybdenum industry has major applications such as catalysts, alloy products, MO metals, lighting, and others. The excellent properties such as high thermal conductivity, melting point, and others are influencing the growth of molybdenum in various sectors, thereby the molybdenum market is driven by high demand from major end-use segments such as petrochemicals, aerospace, automotive, electronics, and others during the forecast period.

COVID-19 Impact

The molybdenum market had major impacts and disruptions during the covid-19 pandemic. Molybdenum is the major application in the chemical & petrochemicals, construction, and automotive sectors. The shutdown in manufacturing activities and disrupted supply chain has led to a fall in the demand for molybdenum. The fall in the chemical industry due to productions halt labor shortages and disrupted raw material supply. According to the National Bureau of Statistics of China, the chemical manufacturing sector was the worst hit in covid-19, showing a 48% decline in 2020. Thus, with the fall in the chemical industry, the applications for molybdenum in this segment experienced a decline. Furthermore, the slowdown in the construction sector also affected the growth of molybdenum during the pandemic owing to lockdown restrictions and shutdown in construction projects across the globe. According to Office for National Statistics, the overall new work output for construction saw a recorded 16.3% decline in 2020, with a 16% fall in private and 17.2% fall in public new work. Furthermore, with the major fall and applications in various end-use industries, the molybdenum market faced a massive impact on global supply chains and demand during the pandemic.

Molybdenum Market Report Coverage

The molybdenum market report: “Molybdenum Market– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the molybdenum industry.

By Grade: Type 361, Grade 364, ASME SA387, and Others
By Alloy Product: Chromium-molybdenum Alloy Steel, Iron, Titanium, Nickel, and others
By Application: Lightings, Stainless Steel, Catalysts, Bearings, Lubricant, and others
By End-Use Industry: Aerospace & Defense Industry, Electronics, Automotive Industry, Construction, Chemicals & Petrochemicals, Oil & Gas, Agriculture, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa)

Key Takeaways

• The molybdenum market is driven by the rising demand for molybdenum steel alloys in various end-use industries such as construction, oil & gas, chemicals & petrochemicals, and automotive during the forecast period.
• The Asia Pacific region is majorly growing and is expected to dominate the molybdenum industry owing to the high demand for molybdenum in the steel and chemical sector in China.
• The rising demand for molybdenum for application in the aerospace & defense sector is creating a major growth opportunity for the molybdenum market during the forecast period.

Molybdenum Market Segment Analysis – By Grade

By grade, Type 361 is expected to have the largest share of more than 37% in 2021 and is expected to dominate the molybdenum market in the coming years. The grade type 361 is pure 99.95% molybdenum, with the composition of magnesium, nickel, aluminum, and others. The consumption of this pure grade molybdenum is rising among different manufacturers, majorly oil & gas, construction, and manufacturing sectors. According to India Brand Equity Foundation (IBEF), the oil demand is expected to reach 11 million barrels per day by the year 2045. The grade 361 products are preferred for oil and gas pipes, and other wire applications. The high tensile strength, enhanced corrosion resistance, ductility, and durability make it majorly applicable for oil & gas activities. Furthermore, the production for molybdenum increased by 5% in the year 2020 as per International Molybdenum Association (IMOA). Thus, the property to withstand harsh climatic conditions and better functionality for a longer duration is driving the application of grade type 361 in various alloys and end-use segments, majorly oil and gas.

Molybdenum Market Segment Analysis – By Alloy

By alloy, chromium-molybdenum alloy steel is expected to have the largest share of 30% in 2021 and is expected to dominate the molybdenum market in the coming years. The chromium-molybdenum alloy steel is majorly growing due to its application in construction, oil & gas, automotive, and others. The excellent properties such as high temperature, pressure high tensile strength, and corrosion resistance make it perfect for the oil and gas sector. Furthermore, the Indian Oil Petronas Pvt. Ltd. announced to the establishment of auto fuel retailing in 2021 for boosting the oil and gas operation in India. The growth in oil & gas activities such as shale gas exploration, mining, and drilling has led to high demand for chromium-molybdenum alloy steel in major applications such as marine shafts, conveyors, drill collars, and others. Thus, with rising oil and gas sector activities, the demand for the chromium-molybdenum alloy steel segment is expected to grow in the coming years.

Molybdenum Market Segment Analysis – By Application

By application, the stainless steel segment is expected to have a growing share of over 41% in 2021 and is expected to boost the molybdenum industry in the coming years. The application of molybdenum for steel alloys is growing owing to its corrosion resistance, high-temperature features in various industries such as oil & gas, automotive, construction, and others. Furthermore, molybdenum holds a major share in the global steel sector. The molybdenum-based steel grades are known to be highly corrosion-resistant compared to the free grades. The moly stainless steel is majorly in demand for pipes, tubing, gas pipelines, and others, due to its shield against corrosive seawater. Furthermore, the construction industry also makes increased use of high-strength chrome-moly steel. According to India Brand Equity Foundation (IBEF), the current steel-producing capacity in India is 140 million tons per annum, which is expected to rise to 300 million tons per annum by 2030. Thus, with the growing oil & gas, construction, metallurgy, and manufacturing sector, the application of molybdenum in stainless steel will grow in the forecast period.

Molybdenum Market Segment Analysis- By End-Use Industry

By end-use industry, the oil & gas industry segment is expected to have the largest share of more than 32% in 2021 and is expected to grow the molybdenum market in the forecast period. The rising demand for molybdenum steel alloys for various industries, majorly the oil & gas sector has influenced the growth in the molybdenum market. Molybdenum has major applications in the oil & gas sector due to rising oil production projects, oil exploration, and refining, which uses molybdenum for high performance. According to the Ministry of Petroleum and Natural Gas Economic & Statistics Division, the processed crude oil was 20957.64 thousand metric tons during October 2021, showing a 6.86% rise compared to the previous year. The rising demand for deep oil productions will create a major drive in the molybdenum industry. Moreover, the consumption of natural gas is expected to rise by 25 billion cubic meters in India, offering an annual growth of around 9% until the financial year 2024 as per IEA. The use of molybdenum steel alloy is growing in the oil and gas sector owing to its high tensile strength, corrosion resistance, and durability. Furthermore, the demand for molybdenum is expected to grow majorly in the oil and gas end-use industry during the forecast period.

Molybdenum Market Segment Analysis – By Geography

By geographical analysis, the Asia pacific holds the largest share of more than 35% in the molybdenum market for the year 2021. The increasing demand for molybdenum steel products for various sectors such as construction, oil & gas, automotive, and others is boosting the molybdenum market share in this region. The consumption of molybdenum steel is also increasing in major nations such as India, China, Taiwan, and others. The major application of moly alloys in construction is also driving the molybdenum market in APAC. The molybdenum is used as a hardening agent in alloy steel, cast irons alloy, and stainless steel and increases the corrosion resistance of steel alloys. Molybdenum steel is used for making the girders and structural components and framing in the construction sector. The consumption of high-strength-oriented steel for construction and building projects will boost the market for molybdenum in this region. According to China Iron & Steel Association (CISA), the finished steel consumption in China will increase by 2% to 889 million metric tons for the year 2020, with major demand from the construction industry. Furthermore, the rise in oil and gas activities, aerospace, and automotive segment in APAC is likely to boost the demand for molybdenum in the coming years.

Molybdenum Market Drivers

Demand from the aerospace and defense industry

The rising development and growth in the aerospace and defense sector across the world are creating a drive in the molybdenum market. The growth in the airline sector post-pandemic is rising due to recovering economy and resuming air travel. The molybdenum is majorly used in the aerospace sector such as for elevators, ailerons, cockpit instrumentation, helicopter rotor blades, and rudder aircraft sections. According to the International Air Transport Association (IATA), India is expected to pass the United States and China as the largest air passenger sector by 2030. Furthermore, the government of India is working to increase the operational airport's number to around 200 by the financial year 2040. Furthermore, the rising application of molybdenum in the defense sector such as for manufacturing the premier warheads, charge liners, nozzles, and others are influencing the growth of the global molybdenum industry. Thus, with rising demand from the aerospace and defense industry, molybdenum applications will grow, thereby offering better opportunities for the molybdenum market in the coming years.

Increasing use of molybdenum steel for the construction sector

Molybdenum is used in steel alloys for various applications. It enhances the corrosion resistance, durability, and high-temperature strength of the steel grades. The growing construction sector is driving the molybdenum industry owing to its excellent properties. According to the National Bureau of Statistics, the construction output in China was accounted for 25% in 2020, denoting a 6.2 % rise from the year 2019. Moreover, with the rising government emphasis on construction projects, buildings, housing, and infrastructural development, the demand for stainless steel, which contains molybdenum, is also rising. Molybdenum-based steel is used for making structural girders in the construction sector. The molybdenum adds extra hardness, less deformation, temperature resistance, and increased strength to the steel alloy, thus making it a preferred option in heavy construction activities. The high demand for steel for construction and manufacturing in major nations such as China, India, and others will boost the global molybdenum industry outlook in the coming years.

Molybdenum Market Challenges

High prices of molybdenum and depleting reserves can create a major challenge in the market

The demand for molybdenum in major end-use industries such as construction, oil and gas, aerospace, electronics, and others is increasing. Various manufacturers are boosting the molybdenum application owing to its excellent corrosion resistance and strength properties. However, the prices of molybdenum are fluctuating and rising rapidly. The price of molybdenum accounts for around USD 44750 per metric ton as of January 2022, compared to USD 25310 per metric ton in January 2021. The price inflation for molybdenum can create a major challenge for manufacturers in the long run such as planning uncertainties, costly manufacturing, and supply disruptions. Furthermore, the depleting ores for metal extraction can also create a hindrance to the global molybdenum market. With the rising consumer demand for molybdenum, the metal reserves may turn out to be scarce in the coming years, thereby influencing the fall in overall molybdenum productions and extractions.

Molybdenum Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies that are adopted by the dominant players in the market. Molybdenum top 10 companies include:

1. China Molybdenum
2. Codelco
3. Jinduicheng Molybdenum Group
4. Centerra Gold
5. Grupo Mexico
6. Anglo American
7. Rin Tinto
8. RUBAMIN
9. Shaanxi Non-ferrous Metal Holding Group
10. Freeport-McMoRan

Recent Developments

• In July 2020, the China Molybdenum company announced the completion of the acquisition of IXM BV, also known as Louis Dreyfus Co. Metals BV. This acquisition allowed the company to expand its business effectively.
• In May 2019, General Moly's joint venture firm Eureka Moly settled with Kobeh Valley. The company worked to attain the Mount Hope molybdenum project as fully running and permitted.

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