Ferromolybdenum Market Size, Share, Growth, and Industry Analysis, By Type (0.55, 0.6, 0.65 and 0.7), By Application (Steel Alloy Industry and Other) and Regional Forecast to 2032

FERROMOLYBDENUM MARKET REPORT OVERVIEW

The global ferromolybdenum market size expanded rapidly XX in 2023 and the market is projected to grow substantially XX by 2032, exhibiting a prodigious CAGR XX during the forecast period.

Ferromolybdenum (FeMo) is one of the more frequently used iron-molybdenum alloys that contain molybdenum, the percentage of Mo in the alloy can range from 60 to 75%. It is used as the principal source of alloying element in manufacturing molybdenum HSLA steel. Ferromolybdenum is synthesized through a process of heating a reagent containing molybdenum (VI) oxide (MoO3), aluminum and iron. The extraction of molybdenum involves an aluminothermic process where both molybdenum oxide and alum loads are allowed to combine. The obtained ferromolybdenum can be used as such, and for higher purity, electron-beam melting can be applied. Ferromolybdenum is a moles agent used to be introduced into the molten steel before the actual casting to enhance the quality of the end product of steel alloying.

Ferromolybdenum has numerous useful properties that are beneficial to steel alloys and these serve to make it highly useful. Some of those attributes may be an enhancement in its hardness and strength particularly at higher temperatures while others may be about an enhanced corrosion resistance in stainless steel. Also, it enhances hardenability, making it easier to heat-treat and the creation of new acicular ferrite structures in the HSLA steels. Therefore, ferromolybdenum is vital in various uses such as in mechanics and framer structures, manufacture of defence items, refinery pipes and drums, load-bearing equipment and rotary drills.

COVID-19 Impact: Supply chain in the market was under pressure due to a pandemic that disrupted production and transportation

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Lockdowns and restrictions during the period of the pandemic impacted the supply chain for ferromolybdenum. Such issues have affected both the manufacturing and supplying chain of ferromolybdenum, thus incurring several setbacks. Manufacturing concerns suffered shutdowns or limited functionality of production lines, while logistics constraints slowed the throughput of key inputs. This has led to high lead times and high expenses for the required material for ferromolybdenum manufacturing, thus impacting industries that use this alloy, including steel, defence and manufacturing industries. These compounds have put a lot of pressure on the supply chain and they have also raised the price level of products as well as the rate of production.

LATEST TRENDS

"Technological development in the extraction and processing of molybdenum to fuel the market"

New technologies used in the extraction and processing of molybdenum are changing the ways of creating ferromolybdenum, thus making this process more effective and affordable. Techniques such as better aluminothermic reactions and advanced purification technologies such as electron beam melting are helping increase the yield while decreasing waste. Equipment for automation, as well as the systems for monitoring the extraction in real-time, have been implemented to control the quality and eliminate factors of importance to human factors. However, recent developments in hydrometallurgical methods have been opening a window to much improved and sustainable mining operations. These technological advances are helping to reduce the costs of manufacture and increase the rate of output equating to increased use of ferromolybdenum which could fuel the growth of this market. Hence industries that use ferromolybdenum, especially in steel, aerospace and defense sectors are in a position to access more affordable and easily available alloying options.

FERROMOLYBDENUM MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into 0.55, 0.6, 0.65 and 0.7.

• 0.55: Molybdenum comprises about 55% of the alloy and 0.55 ferromolybdenum offers low to medium strength along with a satisfactory corrosion resistance which makes it suitable for the low alloy steel and some of the stainless steel grades. This creates a demand due to the improvement in cost-affordable products with enhanced mechanical properties in industries. Moderate levels of growth are expected considering there will be an equal emphasis on obtaining performance and controlling costs in industries. Industrialization and infrastructure projects in certain territories can be expected to boost demand.
• 0.6: Made with approximately 60% molybdenum and 0.6 ferromolybdenum used in steelmaking contributes a suitable addition to the strengthening and toughening of the steels. This is especially essential in the automotive and construction industries for the use of high-integrity steel. Demand is further enhanced by a changing trend in automotive manufacturing, which moves towards lightweight and strong materials. With the development of mechanical systems in automobiles and nanotechnology, enhanced growth is expected.
• 0.65: Composing about 65% of molybdenum, 0.65 contains ferromolybdenum that possesses excellent mechanical characteristics. It is useful where there is a need for high tensile strength accompanied by high heat resistance making it ideal for use in the manufacture of aerospace and military parts and equipment. The demand for lightweight heating systems is attributed to the increased usage of lightweight materials in these industries. Investment, development in new technologies, increase in defence sectors and many more all suggest a high market growth for 0.65 ferromolybdenum.
• 0.7: Constituting about 70% of molybdenum, 0.7 ferromolybdenum provides increased strength and improved resistance to corrosion, beneficial for high-stress applications. It plays a crucial role in the production of high-strength alloy steels and other specific off-shore alloys used for application in oil and natural gas exploration. Increased energy markets are expected to play a major role in industrial growth and demand towards 0.7 ferromolybdenum.

By Application

Based on application the global market can be categorized into Steel Alloy Industry and Other.

• Steel Alloy Industry: Most of the ferromolybdenum is utilized in the steel alloy industry and it comprises more than eighty percent of the supply to manufacture high-strength and stainless finished products. It improves steel’s tensile strength, hardness and anti-corrosive properties necessary in structural parts and components. Rising automotive necessities for the substantial part of a vehicle and infrastructure development projects are also elevating ferromolybdenum consumption which is accelerating a considerable augmented in the steel alloy segment.
• Other: Apart from the steel alloy market, ferromolybdenum is applied in aerospace, military and chemical fields due to enhanced high-temperature strength and high corrosion resistance. Due to modern technologies, for instance, renewable energy systems and advanced production, there are slow and gradual demands. Current research and development are pushing the boundaries for innovations of high-tech applications and the market. The other applications segment is expected to grow, offering more uses due to the special properties of the material ferromolybdenum.

DRIVING FACTORS

"Higher demand for technological advancement in aerospace and automotive industries to propel the market"

The aerospace and automotive sectors are mainly influential in terms of the global ferromolybdenum market growth due to the capacity of ferromolybdenum to improve the strength and corrosion resistance of the alloys. In the aerospace industry, ferromolybdenum is needed to manufacture durable components to be used in severe conditions and at principally high temperatures including the turbine blades and structures. In automotive engineering, the alloy is used to enhance the toughness and dependability of important and sensitive components in automobiles such as engines, chassis and suspension systems which have of late been called upon to provide optimum high-performance characteristics. Increasing utilization of lightweight and high-strength materials in these industries also contributes to growth in the demand for ferromolybdenum. With the development of technologies and the enhancement of requirement of material properties of aerospace, automobiles and so on, the use of ferromolybdenum is believed to get a broader application, thus the market is expected to experience considerable growth.

"Increasing level of customer awareness regarding the numerous advantages offered to expand the market"

Increasing consumer knowledge about the need for ferromolybdenum is also a key driver of market growth. The awareness among industries as well as the end consumers regarding the application of the alloy for increasing the efficiency and longevity of products is growing in all areas. The versatility of ferromolybdenum in enhancing the strength, hardness and corrosion resistance of steel and other related alloys is rapidly gaining acceptance due to improved performance in higher operational value. This awareness is bolstered by the increasing appreciation of quality and durability in creating products in sectors that require high-margin solutions such as aerospace, automotive industry and structures. Due to the need to get materials with high wear and tear resistance as well as efficiency, the demand for ferromolybdenum is now on the rise due to its role in evolving firmly as a premier supplier of high-quality and durable products.

RESTRAINING FACTORS

"Inconvenience in raw material supply and fluctuating prices hamper the market"

The pricing of raw materials especially molybdenum concentrates significantly affects ferromolybdenum and its availability in the market. These raw materials may include metallic ores mined from the earth and other essential materials that are sourced and when there are supply interruptions such as the mentioned mining complications, geopolitics or transportation problems these elements have the potential to create a shortage and therefore decrease production magnitude. Moreover, variations in the prices of the raw materials required for production can be quite a burden and lead to the evaluation of prices to customers beyond what is feasible in meeting the market needs. These attributes can cause fluctuation in the market and possibly cause an increase in cost to the customer and hence limit the expansion of the market. Therefore, the situation imposes certain risks and challenges on manufacturers to maintain a stable supply of ferromolybdenum and control production costs to support further growth in the market and adapt to the changing needs of industries.

FERROMOLYBDENUM MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Asia Pacific region is playing a great role in enhancing the market through investment in the infrastructure"

Infrastructure development-related investments in the Asia Pacific region are making considerable demands for high-strength steel alloys that incorporate a lot of reliance on ferromolybdenum. As the nations of this region begin to develop infrastructure projects such as bridges, highways and skyscrapers, it becomes important to look for sturdy materials. These high-performance steel alloys require ferromolybdenum, which is widely recognized for improving the steel’s tensile strength and making it more resistant to corrosion. As the number of construction activities and buildings rapidly rises throughout Asia Pacific, ferromolybdenum positions itself as a suitable material which provides the necessary abrasion and load-bearing characteristics in extreme environments. This trend also contributes to the global ferromolybdenum market share and highlights the role of the element in the construction of new facilities.

KEY INDUSTRY PLAYERS

"Key industry players are investing more in their production capacity for deeper market penetration"

The market structure of key industry players is set to increase production capabilities significantly. This expansion requires large capital to be committed to new technologies and brand-new plants aimed at increasing production and optimizing production capacity. The industry is also utilizing improved aluminothermic reactions and high efficiency in purification techniques to increase the yield and overall production. Moreover, there are other factors such as setting up new manufacturing plants and also enhancing the existing manufacturing plants to be in a position to scale up the capacity. These efforts have been planned to address the rising demands across different industries, such as aerospace, automotive and construction industries needing ferromolybdenum for enhanced steel alloys. Through enhancing their production competence, the key industry players have ensured that they create a strategic place in the ever-growing market and market opportunities.

List of Market Players Profiled

• Moly Metal LLP (India) 
• JAYESH (India)
• JDC-Moly (China) 
• Jinzhou New China Dragon Moly (China)
• Luanchuan County Longyu (China) 
• Huludao Wonful (China) 
• China Molybdenum (China)
• Freeport-McMoRan (U.S.)    
• Molymet (Chile) 

INDUSTRIAL DEVELOPMENT

January 2024: Jindal Stainless has requested the continuation of zero customs duty on stainless steel scrap, steel scrap, and pure nickel, along with a long-term exemption for ferro nickel and ferro molybdenum in the upcoming Union Budget for 2024-25. The company also seeks to maintain a 30% export duty on chrome ore and proposes measures to combat dumping and substandard imports, particularly from China.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.