Molybdenum Usage Down 23% in China, Says IMOA

Production in China, the largest user of molybdenum (Mo) and the world's largest producer, declined 1% in the third quarter of 2021, but usage was down 23% compared to the previous quarter and 14% compared to the second quarter of 2020.

Global Mo production fell 1 percent in the third quarter of 2021 compared to the previous quarter and 6 percent compared to the same period a year earlier. Data released by the nonprofit International Molybdenum Association (IMOA) show that global Mo use declined 15 percent to 144.6 mlbs in the third quarter of 2021 compared with the previous quarter, despite an increase of 5 percent compared with the same period a year earlier.

Molybdenum rich drill core image

Macquarie said its detailed analysis of the Chinese market showed that the main first use of the metal was in ferro-molybdenum which is used in the steel industry and accounts for 80% of Chinese consumption. China was the largest producer of Mo in the third quarter of 2021, with the production of 52.3mlbs, down 1 percent compared to the previous quarter, but up 12 percent compared to the same quarter last year. South America was the second-largest producer, up 2 percent from the previous quarter to 45.7 million pounds, but down 14 percent from the same quarter last year.

Production in North America increased 3% compared to the previous quarter to 31.4 million pounds, down 16% compared to the same quarter last year. Production in other countries declined 17 percent compared to the previous quarter to 12.3 million pounds, down 11 percent compared to the same quarter last year.

Molybdenum use declined in all regions compared to the previous quarter, although it increased in all regions except China compared to the same quarter last year. China was the largest user with 56.2mlbs of use, down 23 percent compared to the previous quarter and down 14 percent compared to the same quarter last year. Use in Europe, the second-largest user, increased 10 percent to 30.3mlbs compared to the same quarter last year, despite a 14 percent decline compared to the previous quarter.

China molybdenum production image

Usage in the rest of the world increased 34 percent to 24.1 million pounds compared to the same quarter last year and decreased 7 percent compared to the previous quarter. Use in the U.S. increased 34 percent to 15.3mlbs compared to the same quarter last year and decreased 2 percent compared to the previous quarter. Use in Japan increased 24 percent to 13.1 mlbs compared with the same quarter last year and decreased 2 percent compared with the previous quarter.

 

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