by Molybdenum is a grayish metal that is naturally occurring. It is a rare metal found in over 100 different minerals. However, molybdenum disulfide is its most important ore, which usually contains 35% to 85% molybdenum by weight. Molybdenum finds application as alloying agents due to its high melting point and corrosion resistance. It is used as an alloy element for making steel and cast iron. Molybdenum steel possesses high strength, hardness, wear and corrosion resistance properties. It is utilized in varied industrial machinery like pumps, valves, engines and hydraulic cylinders. With growing industrialization in emerging nations, the demand for high-quality steel and machinery is rising fast, thus fueling the overall molybdenum market.
The global molybdenum market is estimated to be valued at US$ 316.0 Billion in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing industrialization and infrastructure development across developing nations is driving the market of molybdenum significantly, which was also highlighted in the market heading. Molybdenum is a key input material for making special steel that finds application in construction, machinery, and transportation industries. Thus, rising urbanization and industrial investments are boosting the construction activity, leading to increased consumption of high-grade steel. For instance, as per World Steel Association, China’s crude steel production in January-February 2021 surged over 23% year-on-year to 151 million metric tons. This massive steel production is augmenting the demand for molybdenum.
Apart from this, favorable government policies supporting industrial sector expansion are also catalyzing the market growth. Many emerging economies are introducing production-linked incentives, tax rebates, and relaxed FDI norms to enhance their global competitiveness in strategic sectors. These initiatives are anticipated to foster industrial infrastructure development programs, thereby escalating the adoption of molybdenum in the long run.
Segment Analysis
Molybdenum Market is primarily segmented into chemical, construction, automotive, aerospace and oil & gas. Among these, chemical segment dominates the market and holds around 40% share in overall molybdenum market. Chemical sector is the major consumer of molybdenum due to its extensive use as alloying element in producing stainless steel and other corrosion-resistant material. Molybdenum enhances anti-corrosion, high temperature strength and other mechanical properties. This has resulted in large scale consumption of molybdenum in manufacturing various chemicals including fertilizers, catalysts and others. Moreover, molybdenum is majorly used in producing phosphate fertilizers which has further augmented demand from agricultural sector.
PEST Analysis
Political: Stable political environment and supportive government policies towards mining, production and export of molybdenum in major producing countries like China propels market growth.
Economic: Rising industrial activities along with increasing demand from construction and automotive sectors positively influence the economic factors. Developing nations are witnessing higher economic growth, thus driving consumption.
Social: Growth in population and rapid urbanization increases the demand for infrastructure, automobiles and consumer goods. This escalates social need for molybdenum consumption.
Technological: New product development and innovations in end-use industries optimize molybdenum utilization. Advanced extraction processes help improve productivity and sustainability.
Key Takeaways
The Global Molybdenum Market Growth is expected to witness high during the forecast period of 2023 to 2030 led by surging infrastructure development and expanding automotive industry worldwide.
Regional analysis: Asia Pacific dominates the global molybdenum market with China being the largest producer as well as consumer. The region accounts for over 60% of total molybdenum production led by increasing stainless steel demand from China, India and other developing Asian countries.
Key players operating in the molybdenum market are Rio Tinto, China Molybdenum, Freeport-McMoRan Inc., Codelco, Grupo Mexico, Thompson Creek Metals Company Inc. and SeAH M&S. Key players are engaged in capacity expansion and strategic collaborations to strengthen market presence. Rio Tinto is one of the leading molybdenum mining company and operates four molybdenum mines in America and Europe.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
