Molybdenum is a transition metal widely used in making iron, steel and superalloys due to its high melting point and corrosion and oxidation resistance properties. Stainless steel with molybdenum additive gives desired hardness, durability and workability to cater diverse industrial applications from cookware, cutlery to pipes and automobile parts. The global molybdenum market is estimated to be valued at US$ 316.0 Billion in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity in stainless steel production is expected to drive the demand for molybdenum over the forecast period. Molybdenum is a key alloying element used in producing stainless steel as its addition improves the corrosion resistance and toughness of stainless steel. With growing construction activities coupled with increasing investments in oil & gas and chemical industries, the demand for stainless steel is surging significantly. As per estimates, the global stainless steel demand is anticipated to grow at a CAGR of over 4% until 2030. This rising need for stainless steel will subsequently boost the consumption of molybdenum in the coming years. The properties imparted by molybdenum make stainless steel an integral part of various industries thereby opening vast market opportunity for molybdenum in stainless steel production industry.
Porter’s Analysis
Threat of new entrants: The molybdenum market requires significant investments in mining, processing and distribution infrastructure which acts as a barrier for new companies. Bargaining power of buyers: Large buyers such as steel producers have significant bargaining power over molybdenum suppliers due to consolidated demand. Bargaining power of suppliers: Major molybdenum mining companies have strong influence over prices due to their control over global reserves and production. Threat of new substitutes: There are limited alternatives to molybdenum in applications such as steel production. Competitive rivalry: The market is consolidated with top players accounting for bulk of global supply.
SWOT Analysis
Strength: Large reserves provide assurance of long term supply. Wide range of applications drives consistent demand. Weakness: Fluctuating prices lead to challenges in capital investments and planning. Dependency on steel industry makes market vulnerable to economic cycles. Opportunity: Growing construction and automobile sectors in developing nations will boost steel consumption increasing molybdenum demand. Rising use of molybdenum in aerospace applications presents new growth avenue. Threats: Potential substitutes especially in alloying applications can threaten molybdenum dominance. Economic slowdowns can significantly impact steel production and downstream molybdenum consumption.
Key Takeaways
The Global Molybdenum Market Growth is expected to witness high over the forecast period.
Majority of reserves are located in China which is also the leading producer globally accounting for over 30% of total supply. United States is another key producing nation with significant mines located in the states of Colorado and Utah.
Key players operating in the molybdenum market are Freeport-McMoRan, China Molybdenum, Molymet and Thompson Creek Metals. Rising steel production to meet demand from infrastructure and construction sectors will be a key driver for molybdenum consumption globally. Developing economies across Asia Pacific and Latin America are likely to be high growth regional markets.
Explore more information on this topic, Please visit -
https://www.ukwebwire.com/molybdenum-market-share-and-demand-analysis/
Explore more trending article on this topic -
