Byproduct of copper mining, molybdenum is referred to a lightweight silvery-white lustrous metal, with the reminiscence of tin. Molybdenum is a durable, reliable, and resilient, and has a relatively lower degree of thermal expansion. In addition, the metal also comprises characteristics such as excellent performance at high temperatures, and high corrosion resistance.
Demand for Molybdenum to be driven by Increasing Focus on Renewable Energy Production
Over the past few years, demand for energy has surged substantially across all major industrial sectors. With fast depletion of natural resources, manufacturers are being prompted to venture into the renewable energy sources. Installing bases for renewable energy production plants entails huge demand for various types of steel for construction purposes. This factor is projected to create a significant demand for molybdenum. Leading producers of molybdenum in the market are increasingly focusing on introducing new primary & byproduct operations, with an aim of alleviating their outputs, and catering to high molybdenum demand in special chemical and steel applications. Several regional and local vendors are providing application-specific products for a wide range of end-users.
Molybdenum to Find the Largest End Use in Oil & Gas Industry
Albeit current cost of oil is low, molybdenum is expected to find the largest end-use in the oil & gas industry. Increasing investment in capacity, with subsequent oversupply for weaker demand has resulted into reduced capital spending on molybdenum-related projects. However, with equilibrating oil market, recovering of prices, and investment returns, a sharp upturn will be observed in demand for molybdenum for end use in the oil & gas industry.
Meanwhile, a relatively faster expansion is projected for molybdenum sales for end use in chemicals & petrochemicals sector. Revenues from sales of molybdenum for end use in mechanical engineering and automotive sector will also account for major shares of the market by 2026-end.
APEJ to Remain Largest and Fastest Growing Market for Molybdenum
Asia-Pacific excluding Japan (APEJ) is considered to be the hub for production and sales of steel. Robust increase in economic expansion and industrialization in APEJ countries such as India, South Korea, and China had led to a rise in infrastructural development in these regions, which in turn is propelling demand for steel and its alloys. As molybdenum forms an integral part of various types of steel, its demand is likely to spur in APEJ. APEJ will continue to be the largest as well as fastest expanding market for molybdenum.
Europe, followed by North America, is also expected to remain lucrative for growth of the molybdenum market, however the latter will exhibit a relatively higher CAGR through 2026. Latin America’s contribution to expansion of the global molybdenum market will remain lower during the forecast period.
In terms of revenues, full alloy will continue to be the most lucrative application of molybdenum, followed by stainless steel. However, sales of molybdenum for stainless steel production will register a comparatively faster expansion than that for full alloy through 2026. In addition, catalysts and HSLA will continue to be the fastest expanding applications of molybdenum throughout the forecast period.
FMI’s report has profiled active players contributing to the market expansion, which include Jinduicheng Molybdenum Co., Ltd., BHP Billiton Group, Compania Minera Dona Ines De Collahuasi S.C.M., Compañía Minera Antamina S.A., Thompson Creek Metals Company Inc., Antofagasta plc, China Molybdenum Co., Ltd., American CuMo Mining Corporation, Grupo México, S.A.B. de C.V., and Freeport-McMoRan Inc.
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