Molybdenum is used as a component in many high quality stainless and specialty steel alloys because of its effectiveness as a hardening agent as well as for its strength, toughness, and corrosion resistant qualities. The steel industry accounts for 70% of total molybdenum demand.
Other molybdenum end-uses include, catalysts (petroleum refining and plastics manufacturing), molybdenum alloys (glass and lighting, etc.), superalloys (aerospace), cast irons (mining and automotive), specialty lubricants, pigments, and chemicals (smoke suppressants).
Source: CPM Group
Molybdenum’s robust physical properties are able to withstand extreme temperatures, and harsh and corrosive environments.
The energy industry accounts for approximately 38% of molybdenum demand.
Most energy sectors rely on molybdenum-bearing steels. The petroleum and natural gas industries use steels with molybdenum alloys in drill pipe, transmission pipelines, offshore platform constructions, and more. Coal and nuclear power plants also utilize molybdenum-bearing steels.
Molybdenum catalysts are used by the petroleum industry in the hydroprocessing and hydrodesulfurization of crude oil. To meet growing demand for crude oil by the developing economies, heavier and sourer crudes are increasingly being refined. This has been compounded by increasingly strict emissions standards for diesel and gasoline fuels.
Demand has been not only growing in its principal end uses, but demand for molybdenum has been increasing as the energy, transportation, and construction industries have been seeking to utilize molybdenum’s significant alloying properties.
Demand for molybdenum in the steel industry is relatively price inelastic because molybdenum is typically used in small quantities as an alloying agent.
