Molybdenum Market
Molybdenum Supply and Demand
Molybdenum, predominantly a by-product of porphyry copper mining, continues to play a vital role in global industrial processes. China remains the largest producer and consumer of molybdenum, contributing approximately 38% of the global supply. Despite its status as a secondary product, molybdenum has gained significant investor interest due to sustained high prices and its importance in the energy transition.
Global molybdenum production remains around 300,000 tonnes annually, with most of the output utilized in steel manufacturing, including engineering steels, superalloys, and chemical applications. As industries accelerate their transition to renewable energy technologies, molybdenum’s role in green energy systems and advanced materials is increasingly critical.
In 2025, China’s influence on the molybdenum market persists, as its steel and green energy sectors drive demand. Although domestic production has recovered since the COVID-19 disruptions and power shortages of prior years, supply remains constrained by mining challenges and environmental regulations. Similarly, Chile, the second-largest producer and key supplier of molybdenum, faces ongoing production difficulties, particularly at Codelco. These issues have capped output, maintaining upward pressure on prices.
The World Bank and other institutions continue to highlight molybdenum as essential for green technologies, including hydrogen production and advanced alloys. However, with limited new production expected in the short term, the market is poised to remain tight in 2025.
As of early 2025, molybdenum prices remain at elevated levels following a record-setting 2024. Prices surged to USD 37.90/lb in February 2023 and have since fluctuated within a range of USD 35.00/lb to USD 40.00/lb. Analysts anticipate continued price strength, with forecasts suggesting a potential range of USD 32.00/lb to USD 45.00/lb for the year, driven by supply-side constraints and robust global demand.