Molybdenum Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• The increasing steel production in Asia-Pacific and growing demand from the energy sector are expected to drive the market growth.
• The high cost of molybdenum is likely to hinder the growth of the market.
• 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 the Aerospace and Defense Industry

• Molybdenum is one of the essential materials for the aerospace and defense industry because of its various properties, such as high-temperature stability, tensile strength, density, radiation protection, and excellent material machinability.
• In the aerospace industry, molybdenum is used to reduce vibration and improve 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.
• India is the ninth-largest civil aviation market in the world and is projected to become the largest by 2030. At present, there are 153 airports in the country, and it is anticipated to increase to 190-200 by FY 2040. The rising fleet size is expected to escalate the number of airplanes to 1,100 by 2027.​
• In September 2021, the Ministry of Defence (MoD) signed a contract with M/s Airbus Defence and Space, Spain, for the acquisition of 56 C-295MW transport aircraft for the Indian Air Force.
• According to the Federal Aviation Administration (FAA), the total commercial aircraft fleet is expected to reach 8,270 in 2037, owing to the growth in air cargo. Also, the US mainliner carrier fleet is expected to grow at a rate of 54 aircraft per year due to the existing fleet getting older.
• In the 2022 defense budget, the US government allots USD 768.2 billion for national defense programs, which is about a 2% increase from the Biden administration’s original budget request, registering a growing usage of molybdenum in the sector.
• Overall, a steady growth rate in the aerospace and defense industry and an increase in molybdenum applications in the segment are expected to provide a huge opportunity for the molybdenum market for it to grow.

China to Dominate the Market in the Asia-Pacific Region

• Asia-Pacific is expected to have the largest market globally for molybdenum during the forecast period. Rapid industrialization and rising consumption are expected to boost the market.
• China is among 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.
• According to International Molybdenum Association (IMOA), China's production capacity of molybdenum stood at 52.3 million pounds in Q3 2021, a 1% fall when compared to the previous quarter but a rise of 12% when compared to the same quarter of the previous year.
• The steel industry is one of the largest consumers of molybdenum in the country. In 2021, the annual production capacity of crude steel in the country stood at 1,032.8 metric tons registering more than 50% of global production, hence providing huge demand for molybdenum in the country.
• China has increased its 2021 defense budget by 6.8 percent to 1.35 trillion yuan (USD 209 billion) at a quicker pace than last year's growth. Also, by 2025, China's total number of aircraft will likely reach 5,343, according to the reports issued by the Aviation Industry Development Research Center of China, thus augmenting the market studied.
• Therefore, with the increasing demand for molybdenum from various end-user industries, production is expected to increase further during the forecast period.

Competitive Landscape

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• The market estimate (ME) sheet in Excel format
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