Molybdenum Market is transitioning to a more data-driven approach by 2024
The molybdenum market is critical for various industries as molybdenum is extensively used as an alloying agent in steel. Accounting for around 50% global consumption, the metal confers strength, toughness, and hardness in steel. Used in the production of turbine blades, pipes, tools, and other components that require durability at high temperatures, molybdenum plays an indispensable role. Some key advantages of using molybdenum include corrosion resistance, high melting point, and machinability. With the rapid growth of oil and gas, automotive, construction, and power generation industries worldwide, the rising demand for premium and high-strength steel has fueled molybdenum consumption.
The Global molybdenum market is estimated to be valued at US$ 1.9 billion in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the molybdenum market are Thompson Creek Metals Company Inc., China Molybdenum Co., Ltd., Antofagasta PLC, Centerra Gold Inc., and FreeportMcMoRan Inc.
The growing demand from various end-use industries like oil and gas, chemical, automotive, etc., is one of the major factors driving the growth of the Molybdenum Market size corrosion resistance and high-temperature strength of steel, which increases its preference across various application industries.
Major molybdenum producing companies are focusing on expanding their global footprint to cater to the growing demand from countries across the globe. For instance, China
Molybdenum has invested in projects across Africa and South America to ensure security of supply and participate in the increasing consumption in developing economies.
Market key trends
One of the key trends gaining momentum in the molybdenum market is the increased focus on data and automation. Major players in the market are shifting from traditional mining and production approaches to more data-driven techniques involving technologies like AI, predictive analytics and automation. This transition aims to optimize operations, predict demand trends more accurately, and enhance productivity while reducing costs. For instance, Thompson Creek Metals utilizes sensor technologies, remote monitoring systems and data analytics to streamline various mining processes at its facilities. The growing role of digital transformation is expected to shape the future trajectory of the molybdenum industry.
Porter’s Analysis
Threat of new entrants: The molybdenum market needs huge capital investment to enter the industry due to mining and processing equipment requirements. This poses a barrier for new players.
Bargaining power of buyers: The molybdenum market has many big buyers like construction and automobile industries. This gives buyers a strong position to negotiate lower prices from suppliers.
Bargaining power of suppliers: Only a few countries like China, USA, Chile control majority of the world’s molybdenum reserves. This gives existing suppliers greater control over prices in the global market.
Threat of new substitutes: Molybdenum Market Challenges and Opportunities arise from the fact that there are few direct substitutes for molybdenum in applications, as alternatives face technological or economic limitations for complete substitution.
Competitive rivalry: The industry has few big players controlling majority supply. Intense competition exists between them to cater growing demand from end-use sectors globally.
Geographical regions
Currently, China dominates the global molybdenum market in terms of value. It accounted for over 40% of the total market share in 2020. This can be attributed to large reserves and growing production capacities in the country.
The molybdenum market in Asia Pacific region excluding China is expected to witness the fastest growth during the forecast period. Countries like India are increasing investment to boost molybdenum mining and production capacities. Growing manufacturing industries like power, construction and automobiles are driving the demand.
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