Molybdenum Information

Molybdenum Market

Demand for Molybdenum has been growing at nearly 8% over the past three years. Analysts expect demand to continue growing between 6.5% and 8.4% over the next three years, which is expected to outpace growth in supply and deplete already low inventories.

Over the past ten years, moly compound growth rates have grown from 2% (1997-2001) to 5% (2002-2006). This rapid demand growth is evidenced most notably in steel output, which grew 7.5% in 2007 and is expected to grow nearly that much in 2008. As moly demand growth has outpaced production, consumers of moly have increasingly turned to inventories of moly to supplement production. In just five years, global moly inventories have fallen from over 6.5 months of production to current levels of 2.7 months. Current inventory levels are expected to fall further as no significant new supply is set to enter the market until the second half of 2009 and other potential suppliers are facing construction delays due to difficult credit markets. At current demand levels, 20-25 million pounds of new molybdenum production must come to market each year to keep pace with market demand.

Molybdenum Demand – Accelerating Growth Rate ( Supply & Demand Chart )

• 30% growth in moly demand since 1997
• Market expected to remain in deficit through 2009
• Projected demand growth between 4.5% - 6% going forward
• Growth rates Require 19-25 million additional pounds of production each year