Global Molybdenum Production and Consumption in Q2 of 2020

According to data recently released by the International Molybdenum Association (IMOA), global molybdenum production in the second quarter (Q2) of 2020 was 67,222 tons, an increase of 3% month-on-month and year-on-year; global Mo consumption in the Q2 of 2020 was 57560.6 tons, an increase of 3% month-on-month and a year-on-year decrease of 14%.

The IMOA reported that global moly consumption in the first quarter (Q1) of 2020 at 123.6 million pounds, decreased 13% year over year. China, the largest user of moly in the world, consumed 40.3 million pounds, 18% less moly in the Q1 compared with a year ago. The moly price has declined from softened demand due to the global economic contraction caused by the COVID-19 pandemic and the weakness in the oil and gas industry impacting molybdenum-strengthened steel consumption.

The moly oxide daily global spot price per pound is currently at $7.93/lb compared with $9.20 at yearend 2019 and $11.88 at yearend 2018, according to Platts. The moly price ranged from a low of $7.33/lb to a high of $9.10/lb during Q2 this year. The moly price reached a low of $7.00/lb on July 20 and breached the $8 mark on August 14, 2020.

Beginning in 2020 through mid-February, moly prices rose to nearly $11/lb. Later in February 2020, prices pulled back to the $9-range and below $9 in mid-March upon the global economic slowdown. Moly rebounded to just above $9 at the end of April but weakened below $8 in mid-June and traded in the $7-range for approximately two months.

It is understood that the main reason for the small month-on-month increase in global molybdenum production and consumption from February to June this year is that the COVID-19 effectively controlled at that stage, which not only prompted Mo mining companies to speed up mining, but also accelerate the recovery of some downstream manufacturing industries such as new energy vehicles, infrastructure, electronic products, and digital products.

Whether it’s new energy vehicles or infrastructure, electronic products, digital products, their core components, battery anode materials, should be doped with some molybdenum disulfide nanoparticles as modifiers during the production process, so that the prepared products will have better electrochemical performance.

In Q2 this year. In terms of production, South America surpassed China to become the largest molybdenum production area, with an output of 2,2407.3 tons, an increase of 11% month-on-month and an increase of 12% year-on-year; China is the second largest producer with an output of 2,1409.4 tons, a month-on-month decrease of 1% and a year-on-year decrease of 8 %; North America’s output fell to 16,692 tons, the largest month-on-month decline, reaching 7%, a year-on-year decrease of 3%; the output of other countries increased significantly to 6713 tons, an increase of 26% month-on-month and an increase of 39% year-on-year.

In terms of consumption, China is still the country with the largest consumption, reaching 26,716 tons. It is also the only country with an increase in consumption, up 46% month-on-month and 7% year-on-year; Europe's consumption ranks second, with 11974.8 tons, a month-on-month decrease of 15% and a year-on-year decrease of 8%; Japan’s Mo consumption surpassed that of the United States at 4,627 tons, a decrease of 20% from the previous month and a year-on-year decrease of 28%;

Molybdenum consumption in the United States was 4,309 tons, down 25% month-on-month and 34% year-on-year; consumption in the CIS was 1,451 tons, down 25% month-on-month, and the largest year-on-year decrease was 44%; consumption in other countries was 8,437 tons, a decrease of 17% month-on-month and a year-on-year decrease of 13%.

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