Molybdenum is a transition metal commonly used as an alloying agent due to its high corrosion resistance. It is commonly added to steel, cast iron, and superalloys to enhance hardenability and strength without significantly reducing ductility. Key end-use industries of molybdenum include oil and gas, chemical processing, transportation, aerospace, and construction. Molybdenum-containing stainless steel finds wide application in the oil and gas industry due to its corrosion resistance properties under harsh operating conditions. Growing global oil & gas production is expected to drive demand for high-quality stainless steel produced using molybdenum.

The global Molybdenum Market is estimated to be valued at Us$ 316 Bn in 2023 and is expected to exhibit a CAGR Of 9.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The Molybdenum market growth is expected to be driven by growing demand from end-use industries. As mentioned in the heading, growing global oil & gas production will fuel demand for corrosion-resistant molybdenum steel used in offshore oil rigs, pipelines, and other processing equipment. Similarly, a burgeoning construction industry will augment sales of reinforced steel and cast iron containing molybdenum as alloy. Furthermore, strengthening economic conditions in developing nations are supporting manufacturing growth across industries like automotive, machinery, and equipment. This will create substantial opportunities for molybdenum consumption considering its indispensable role in producing high-strength steel grades demanded by manufacturing sectors.

Segment Analysis

The molybdenum market is dominated by the stainless steel segment which accounts for over 80% of the global molybdenum market share. Molybdenum is a crucial alloying element that is added during the production of stainless steel to improve the corrosion resistance and high-temperature properties of stainless steel. The demand for stainless steel has been rising at a steady pace globally driven by the growth in end-use industries like construction, transportation, oil & gas, chemical processing plants etc. This sustained growth in the demand for stainless steel has ensured a steady flow of demand for molybdenum over the years.

PEST Analysis

Political: Being a crucial raw material, the molybdenum market is dependent on global trade policies and agreements. Any trade restrictions or tariffs imposed by major economies can impact supply and prices.

Economic: The demand for molybdenum closely follows the economic growth patterns. During recessionary phases, industries that consume molybdenum cut down on production, affecting demand. However, with accelerated global infrastructure spending in the forecast period, the economic outlook remains positive.

Social: Rising population and increasing urbanization is driving demand for end-use products like steel, chemical plants etc. improving disposable incomes is also enabling higher spending on infrastructure and capital goods.

Technological: Molybdenum assists in developing corrosion resistant and high-temperature alloys that enhance performance of applications across industries. Ongoing R&D is unlocking newer uses and applications for molybdenum alloys.

Key Takeaways

The Global Molybdenum Market Demand is expected to witness high growth over the forecast period supported by robust growth in stainless steel demand globally along with rising non-ferrous metallurgy applications. China dominates the molybdenum market with over 40% of the global production. It is also the largest consumer of molybdenum owing to its mammoth steel industry and continued infrastructure spending. The United States is another major regional market driven by its manufacturing sector and strong capital goods industry.

Key players operating in the molybdenum market are Marriott International, Inc., Hilton Worldwide Holdings Inc., Accor S.A., InterContinental Hotels Group PLC, CWT (formerly Carlson Wagonlit Travel). These players are focusing on strengthening supply chain and exploring alternative sources of molybdenum concentrates to mitigate volatility in prices.

Regional analysis

The Asia Pacific region currently dominates the global molybdenum market with a share of over 50% led by China, Japan and India. China, being the world’s largest steel producer consumes a bulk of molybdenum supply. Japan and South Korea are other major consumer markets, contributing to the Asia Pacific dominance. North America and Europe are other major regional markets backed by large automotive, machinery and metal fabrication industries.

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