Molybdenum Demand Driver: 300 Series Stainless Steel Output Keeps Growing

Molybdenum demand continuously expands as the output of the 300 series stainless steel keeps growing. According to IMOA data, newly increased molybdenum concentrate production in China is expected to increase by 15,000 tons in the next four years, with a compound growth rate of 3.8%.

At the supply end, global 2018 molybdenum concentrate production (equivalent to 45% molybdenum concentrate) was 576,000 tons, and in 2017 it was 569,000 tons. The overall output was flat. Among them, production in China accounted for 35%. In 2018, the total domestic production of molybdenum concentrate was 218,800 tons (45% molybdenum concentrate), an increase of 4.6%. According to international institutional data, the growth rate of the top five concentrate enterprises in China in 2019 is 2.72%. It is predicted that the increase rate from 2018 to 2022 is 15,000 tons, and the compound growth rate is 3.8%.

China is the main driver of global molybdenum consumption growth. In the past 18 years, China's primary molybdenum demand has increased from 12,000 tons (metal amount) in 2000 to 93,000 tons (metal amount) in 2018, with an annual compound growth rate of 11.9%. Besides China, the consumption was 140,000 tons in 2000, in 2018 it was 169,000 tons, with a 1.1% annual compound growth rate. China's regional growth rate is much higher than in other regions, and it is the main driving force for global molybdenum consumption growth. At present, China is the world's largest consumer of molybdenum, accounting for 35% of the world's consumption.

At the demand end, 300 series stainless steel is the main force of the demand growth. Dismantling the primary consumption of molybdenum downstream in China, alloy structural steel accounts for 41%, stainless steel accounts for 22%, chemical industry accounts for 13%, pig iron accounts for 8%, metal molybdenum accounts for 5%, and nickel alloy accounts for 3%. The 300 series stainless steel is the fastest growing point in the molybdenum consumption sector. As of July, the total output of the 300 series has increased by 12% year-on-year, and the output of it has increased by 12.3%.

Stainless steel is segmented into various grades depending on the composition used in the product. The 300 series is anticipated to account for the highest market share in 2018. 300 series stainless steel is the series of high molybdenum proportions in stainless steel products. The increase in 300 series products output directly drives the consumption of molybdenum demand. Compared with last year, there is a supply gap of nearly 5,000 tons in the molybdenum industry. it is expected that the price of molybdenum will keep growing steadily in the long run.

• < Prev
• Next >