The global molybdenum market is estimated to witness a healthy growth, at an estimated CAGR of around 4%, over the forecast period. Increasing steel production in china and growing demand from the energy sector are expected to drive the market growth.
- High cost of molybdenum is likely to hinder the markets growth. - Increasing demand for molybdenum-bearing in chemicals is likely to augment the market’s growth in the future. - Asia-Pacific holds the major share in the consumption of molybdenum. The region is also expected to witness the fastest growth during the forecast period, powered by the growth in various end user industries in the region.
Key Market Trends Increasing Demand from Aerospace & Defence Industry
- Molybdenum is one of the essential materials for the aerospace and defense industry because of various properties, such as high-temperature stability, tensile strength, density, radiation protection, and their excellent material machinability. - In the aerospace industry, molybdenum is used to reduce the vibration and to improve the pilot and passenger comfort, as the material has high strength and less weight. It is also used for the stabilization of control surfaces for ailerons, elevators, and rudder sections of aircraft, helicopter rotor blades, and cockpit instrumentation. - The commercial airline sector is expected to continue its decade-long trend of above-average growth rates. This market has been growing globally, particularly at a higher rate in the emerging economies, owing to increasing purchasing power. - In the defense industry, it is used for the manufacturing of premier warheads, nozzles, and shaped charge liners. There has been an increase in defense budgets with the resurgence of global security threats for the United States, as well as the other countries like Russia, France, China, and several other countries. - Overall, a steady growth rate in the aerospace and defense industry and increase in molybdenum applications in the segment are expected to provide huge opportunity to the molybdenum market for it to grow.
China to Dominate the Market in Asia-Pacific Region
- Asia-Pacific is expected to have the largest market globally for molybdenum during the forecast period. The rapid industrialization and rising consumption are expected to boost the market. - China is the largest producer of molybdenum in the world. Major producers of molybdenum in the country are China Molybdenum Co., Ltd., Rio Tinto, and Jjinduicheng molybdenum group co., ltd., among others. - Some of the resource locations for molybdenum are in Henan, operated by China Molybdenum Company Limited, Shaanxi, operated by Jinduicheng Molybdenum Group Co. Ltd, and Liaoning, operated by Yangjiazhangzi Molybdenum Mine. - The country consumes around 8.6 kg molybdenum per 100 metric tons of steel in comparison to the global average of 14.3 kg molybdenum per 100 metric tons of steel. In order to reach the global average, it would be needing an additional 100.6 million pounds of molybdenum per year. - The central government-led steel production capacity cutbacks are predominantly targeting steel mills producing crude and sub-standard steel products. The government is targeting to towards green and efficient capacity which produces specialty steel. - With the increasing demand for molybdenum from various end-user industries, the production is expected to increase further during the forecast period.
Competitive Landscape The global molybdenum market is a consolidated market, with the top players accounting for a major chunk of the market. Key players in the molybdenum market include Anglo American, Antofagasta plc, China Molybdenum Co. Ltd, Grupo México, and Rio Tinto, among others.
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