Roskill - Expanding The World's Knowledge of Metals and Minerals Markets
Table of Contents
- 1. Summary
- 2. Properties
- 3. Molybdenum mining and production processes
- 4. Molybdenum production data
- 5. Notes on producing countries
- 6. World consumption of molybdenum
- 7. Uses of molybdenum
- 8. Analysis of molybdenum international trade data
- 9. Molybdenum prices
This is an abridged table of contents. Click here for the full table of contents.
Molybdenum
High demand and limited roasting capacity causes record high molybdenum prices
In March 2004, molybdenum prices started to rise rapidly, responding to limited world roasting capacity and growing demand for molybdenum, mainly in stainless steel. By May 2005, prices had peaked at between US$40 and $50/lbMo, compared with an average price of about $4.50/lb in the ten years up to 2004. Mine production of molybdenum has historically been surplus to demand, but in 2002 and 2003 was in deficit. Mine output was again surplus to demand in 2004 and 2005, though there was a deficit in usable molybdenum products because of limited roaster capacity. The increasing prices of molybdenum substitutes, along with mine closures, compounded the problem. In late 2005, some 24 molybdenum mining or concentrator projects were under consideration, with a total capacity of about 105ktpyMo. Of more importance for world molybdenum supply is the addition of new roasting capacity to provide usable product. No major new capacity that is independent of new mine supply appears likely to come on stream before 2009. Although prices in 2006 will probably be somewhat lower than in 2005, they are not expected to return to their pre-2004 levels, and will be underpinned by limited roasting capacity and firm demand, particularly in China.
The key trends, issues and developments in the market are analysed in this major new report from Roskill. It provides a clear insight into the industry and its trends, and an authoritative analysis of the prospects for the future.
- Independent, in-depth research and analysis
- Essential market intelligence for successful business planning
- Detailed survey of production in 45 countries
- Up-to-date profiles of the activities of over 90 molybdenum producing and processing companies and potential projects, including Codelco, Phelps Dodge, Grupo Mexico and Rio Tinto
- Forecasts for end-use consumption and world supply and demand
Report highlights
The main end-use of molybdenum is in steel. Stainless steel accounted for an estimated 28% of worldwide molybdenum demand in 2005, followed by full alloy steel (15%), tool and high speed steel (10%), high strength low alloy steel (9%) and carbon steel (9%).
The global market for molybdenum is estimated to have grown from about 100kt in 1990 to 181kt in 2005, an average year-on-year growth rate of 4.3%. This compares with a world real GDP growth rate of 2.9%py. Chinese consumption of molybdenum doubled to around 18kt between 2001 and 2005.
Ten companies account for about two thirds of world molybdenum mine production. Codelco from its four copper mining divisions in Chile, and Phelps Dodge from one molybdenum-only and three copper mines in the USA, are by far the biggest producers, together accounting for about a third of world mine production. Rio Tinto more than doubled molybdenum output from the Bingham Canyon mine in 2005 to become the third largest producer with almost 9% of world production.
Mine production of molybdenum increased from about 140kt in 2002 to 180kt in 2005, with output increasing by almost 16% in 2004 alone. In 2005, sharp falls in Chinese production were offset by greatly increased US, Chilean and Peruvian production. Five countries, the USA (32%), Chile (26%), China (20%) Peru and Canada accounted for 91% of world molybdenum mine production in 2005.
Catalytic applications are the most important chemical end-use for molybdenum, accounting for about 8% of molybdenum consumption. Demand is expected to grow at about 5%py up to 2010. Spent catalysts are both regenerated for reuse, and recycled for recovery of secondary molybdenum. Catalyst regeneration is expected to increase through to 2008, but the need for fresh catalysts will not decline because tighter emission standards and fuel economies are stimulating greater need for use of catalysts.
Buy This Report Now
The Economics of Molybdenum published 01/03/2006
282 pages, 153 tables and 52 figures.
ISBN 0 86214 511 2
Complete report price:
GBP 2200
EUR 3850
USD 4400
plus postage/packing.