February 24, 2024

Growing use of molybdenum as alloying material to boost the growth of Molybdenum Market

Molybdenum is a silvery-gray metallic transition metal with remarkable corrosion resistance. It is used as an alloying material for strengthening steel and cast iron. Owing to its high melting point, molybdenum imparts good creep-resistance, impact resistance and machinability to steels. Major applications of molybdenum include production of high-speed steels for cutting tools; stainless, alloy and tool steels for engine parts and turbines; cast irons for pumps, valves; corrosion-resistant pipe, tubing and chemical process equipment. Strong demand from these end-use industries is expected to propel the growth of molybdenum market during the forecast period.

The global Molybdenum Market is estimated to be valued at US$ 316.0 Billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the market is growing use of molybdenum in production of corrosion-resistant alloys. Molybdenum impart corrosion resistance to alloys used in various chemical process equipment, storage tanks, pipelines transporting corrosive fluids and desalination plants. Demand for molybdenum from oil & gas industry is also growing due to its application in drilling equipment and process piping. Additionally, rising population and urbanization has increased demand for desalination plants across the world, which in turn will augment consumption of molybdenum alloys. Developments in renewable energy sector will further fuel the sales of molybdenum as it has applications in wind turbines gearboxes.
Porter’s Analysis

Threat of new entrants: The high capital requirements and high R&D costs associated with molybdenum extraction, production, and processing act as entry barriers for new players.

Bargaining power of buyers: The highly diversified end-use industries for molybdenum lead to dispersion in demand. This reduces buyer power.

Bargaining power of suppliers: A handful of large mining companies control bulk of the molybdenum reserves. This grants suppliers significant influence over the industry.

Threat of new substitutes: Some alternate materials are available but none match molybdenum’s unique combination of strength, corrosion resistance and high-temperature stability properties.

Competitive rivalry: Competition is intense between major players for market share and dominant supplier agreements with end-use industries.

Key Takeaways:

The global Molybdenum Market Growth is expected to witness high, exhibiting CAGR of 4.7% over the forecast period, due to increasing demand from metallurgical applications. The market size for 2023 is estimated to be US$ 316.0 Bn.

China dominates the global production and consumption of molybdenum. The country accounted for over 40% of total mine production in 2020 owing to presence of large mining reserves and significant steel industry. North America is another major consumer market for molybdenum driven by strong growth in end-use industries such as oil & gas and construction in the US.

Key players operating in the molybdenum market are BHP Billiton Group, Jinduicheng Molybdenum Co., American CuMo Mining, Thompson Creek metals, Moly Metal LLP, ENF Ltd., Compania Minera Dona Ines De Collahuasi S.C.M., Freeport McMoran. These companies collectively account for over 50% of the total global production. Major players are exploring opportunities in emerging markets to meet the increasing demand and gain leadership position.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it