Molybdenum Information

Molybdenum - The Energy Metal
Molybdenum (or Moly) is an element (#42 on the periodic table) primarily utilized by the steel industry as an alloying agent in a wide range of steel products because of molybdenum’s unique characteristics. Moly-enhanced steel alloys are stronger and more resistant to corrosion and heat than other forms of steel. Molybdenum’s unique properties limit consumers’ ability to substitute for other metals and make Molybdenum a necessary component in a growing number of steel applications.

Molybdenum is often referred to as “the energy metal” because of its numerous applications within the energy industry. Approximately 38% of end-use molybdenum demand comes from the energy industry. Molybdenum is used extensively in oil pipelines, drilling equipment, storage and refining facilities, as a desulphurization agent in petroleum refining, and in nuclear and coal power plants. Within the commodity sector, Molybdenum’s prices are most closely correlated with oil. The fastest area of growth in molybdenum demand comes from the refining industry, which uses molybdenum extensively in the production of ultra-low-sulfur diesel fuel. As auto emission levels continue to strengthen, we anticipate continued rapid growth from this area of demand.

Molybdenum is a modern metal for sophisticated applications. • Utilized by Steel Manufacturers to – Increase Metal Strength (construction) – Increase Corrosion Resistance (pipelines, boats, desalinization plants) – Increase Heat Resistance (aircraft) • Utilized by Oil & Gas Companies to – Remove Sulfur from Fuels (diesel fuel, refining of crude oil) – Build Oil & Gas Pipelines (Alaska Oil Pipeline) • Requires approx. 2x Nickel for Strength • No Equal for Corrosion resistance • Inelastic Demand (not price sensitive)