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Molybdenum is a silver-grey colored metal that is hard, malleable, and ductile in nature with excellent strength at high temperature, high melting point, and high thermal conductivity. It is highly resistant to heat, which makes it useful in the production of alloys of iron and steel. Molybdenum is extracted from molybdenite and the major molybdenite deposits are in the U.S., China, Canada, and Chile. According to the U.S. Geological Survey (USGS), China, Chile, the U.S., Peru, Mexico, and Armenia accounted approximately 95% of total global molybdenum production in descending order.

Market Dynamics

Molybdenum is used in stainless steel, commonly in the range of 2 to 4%, which helps in improving the resistance to pitting in chloride environments and to fissure in Fe-Cr-Ni alloys and Fe-Cr alloys. This is one of the major factors driving growth of the molybdenum market. Furthermore, increasing demand for various steel such as stainless steel, structural steels, and others, particularly in China, fuels growth of this market. According to the World Steel Association, China is the largest producer of steel, by producing 803.8 million metric tons in 2015 and it was increased to 808.4 million metric tons in 2016.

However, molybdenum fumes and dust produced during metalworking or mining may be toxic if ingested, which is expected to hinder growth of the global molybdenum market.

Market Trends

Among end-use industries, the automotive segment is expected to witness a significant growth in the near future. Molybdenum alloy is used in various automotive parts such as vehicle’s flywheel, clutch, and other parts, owing to its excellent strength to weight ratio, which makes molybdenum a vital material in automotive vehicles. Growing automotive industry results in increasing demand for molybdenum, thereby fueling the molybdenum market growth. According to the India Brand Equity Foundation (IBEF), the automobile market was valued at US$ 74 billion in 2015 and is expected to increase up to US$ 300 billion by 2026.

Among applications, the fertilizer segment is expected to show a significant growth in the global molybdenum market over the forecast period. Various manufacturers are focusing on launching new products and plant expansion to expand their product portfolio and to cater to increasing consumer demand, which in turn is driving growth of this segment. For instance, in April 2018, Artal Agrinutrients launched Artal Rice, which is a liquid mixture of molybdenum, boron, and zinc to improve yield and to increase number and size of grains.

Market Outlook

North America holds a significant position in the global molybdenum market growth, owing to growing oil and gas industry in the region. Shale gas revolution has paved path to increasing exploration and production activities in this region. According to the U.S. Energy Information Administration, the total shale production in the U.S. in 2014 was 13.4 trillion cubic feet, which raised up to 15.2 trillion cubic feet in 2015. Increasing offshore E&P activities in shallow and deep water contributed to the growth of oil and gas chemicals in this region.

Furthermore, increasing mining production of molybdenum results in growth of the molybdenum market. According to the United States Geological Survey (USGS), in the U.S., mine production in 2016 was 35,800 metric tons, which increased up to 44,600 metric tons in 2017.

Asia Pacific is expected to be the fastest growing region in the global molybdenum market over the forecast period. This is owing to increasing demand for stainless steel in various end-use industries such as automotive, energy and heavy industries, and others in emerging economies such as China. According to the Department of Industry, Innovation and Science, a department of the Australian Government, stainless steel production in China was around 25 million tons in 2016, whereas, Japan was the second largest market for stainless steel production accounting for 3.3 million tons in 2016.

Key Players

Some of the leading players operating in the global molybdenum market include Centerra Gold Inc., Codelco Mining Company, China Molybdenum Company Limited, Freeport-McMoRan Inc., Anglo American plc., Cronimet Group, Jinduicheng Molybdenum Group Co., Ltd., Shaanxi Non-Ferrous Metals Holding Group Co., Ltd, Antofagasta plc., Grupo México, and S.A.B. de C.V.

Key Development

Several key players in global molybdenum market are focused on developing organic and inorganic strategies such as merger and acquisition and capacity expansion in order to enhance their global presence. For instance,

In May 2016, China Molybdenum Co., Ltd., one of the leading player in global molybdenum market, made an agreement with Freeport-McMoRan Inc. (“Freeport”), a mining company, to acquire 100% of its interest in Freeport-McMoRan DRC Holdings Ltd., which holds Freeport’s indirect 56% interest in the Tenke Fungurume copper-cobalt mine (“Tenke”).

In September 2018, Antofagasta Minerals, the copper mining group, started the molybdenum plant at its Centinela Mine in Chile, with increasing the production up to 2,000 tonnes in 2019.

Molybdenum Market Taxonomy

On the basis of application, the global molybdenum market is segmented into:

  • Alloys
  • Catalysts
  • Fertilizers
  • Foundry
  • Others

On the basis of end-use industry, the global molybdenum market is segmented into:

  • Automotive
  • Oil & Gas
  • Aerospace & Defense
  • Chemical
  • Energy
  • Others

On the basis of region, the global molybdenum market is segmented into:

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • Italy
    • France
    • Russia
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • Northern Africa
    • Central Africa
    • South Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users