May 27, 2024
Molybdenum Market

The Growing Use of Molybdenum in Steel Production is Driving the Global Molybdenum Market

Molybdenum is a rare silvery-grey metal known for its high-melting point, strength at high temperatures, and resistance to corrosion. It is commonly used to add strength and corrosion resistance to steel alloys such as high-strength low-alloy steel and stainless steel. Given its useful mechanical properties, molybdenum plays an important role in structural applications and oil and gas infrastructure. The majority of molybdenum produced is used to make alloy steels stronger and help prevent steel from corroding at high temperatures. With the ongoing growth of industries such as construction, manufacturing, and oil and gas, demand for molybdenum-enhanced steel is experiencing a subsequent increase.

The global molybdenum market is estimated to be valued at US$ 364.04 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the molybdenum market size is the rising application of molybdenum in stainless steel production. Stainless steel contains a minimum of 10.5% chromium which prevents corrosion and allows it to be cleaned simply with soap and water. The addition of molybdenum provides strength and increased resistance to rust, heat, and acids. As populations expand, urbanize, and seek more durable materials, the demand for molybdenum use in stainless steel is expected to increase substantially over the forecast period. Additionally, emerging technologies such as 3D printing are stimulating new innovations and the development of high-strength molybdenum alloys suitable for additive manufacturing applications.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the molybdenum market is relatively low owing to the requirements for extensive mining, processing and distribution infrastructure.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and differentiated nature of molybdenum products.
Bargaining power of suppliers: Suppliers have moderate to high bargaining power due to scarcity of resources and long term contractual agreements between miners and processors.
Threat of new substitutes: The threat of new substitutes is moderate as there are a few products that can replace molybdenum in its end use applications.
Competitive rivalry: The competitive rivalry in the molybdenum market is high due to declining ore grades and requirements for huge capital investments.

Key Takeaways

The global molybdenum market is expected to witness high growth over the forecast period. The global molybdenum market is estimated to be valued at US$ 364.04 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.

China, followed by the United States, dominated the market in 2021 by accounting for more than half of the total share. Asia Pacific is expected to be the fastest growing as well as the largest market for molybdenum during the forecast period. This is attributed to increasing demand from the construction industry in developing countries like China and India.

Key players operating in the molybdenum market are Baxter International Inc., GlaxoSmithKline plc, Novartis AG, Perrigo Company plc, Caleb Pharmaceuticals, Inc., Myungmoon Pharma Co. LTD., Alchem International, Phytex Australia, Centroflora-Cms, Alkaloids of Australia, and Fine Chemicals Corporation.

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