Nicknamed the "industrial vitamin," molybdenum is an essential metal raw material for sectors like steel metallurgy, high-end equipment, and new energy. China holds the world's largest reserves of molybdenum ore. In the first half of 2026, the molybdenum market has strengthened across the board, with prices of its two core products—molybdenum concentrate and ferromolybdenum—rising nearly 30% to reach their highest levels in nearly three years.
The price of molybdenum concentrate has exceeded 5,300 yuan per ton-degree. Ferromolybdenum has seen a one-day increase of 1,500 yuan per ton. What is driving the sustained strength in molybdenum prices, and what new shifts are occurring in the supply-demand dynamics across the industry chain?
How Rapid is the Molybdenum Price Surge?
Ferromolybdenum, a core product after the smelting of molybdenum concentrate, is an indispensable alloy additive for special steels. Ren Linhai, manager of the China Smelting Branch of a major molybdenum company in Luoyang, explained that the price of ferromolybdenum was 332,000 yuan per ton on July 14th, compared to 330,500 yuan on July 13th—a one-day increase of 1,500 yuan. Over the long term, ferromolybdenum is on an upward trend.
Molybdenum Concentrate Prices Rise as Companies Hit Capacity Limits, Focus on Boosting Recovery Rates
With ferromolybdenum prices persistently high, many wonder if upstream mines can increase extraction and supply. At a large open-pit molybdenum mine in Luoyang, Henan, the mining area operates at full capacity around the clock. Raw ore undergoes processes like crushing, grinding, flotation, and concentration to finally produce high-purity molybdenum concentrate, the most crucial upstream raw material in the molybdenum chain. A company representative stated that current production capacity is near its limit, and it is difficult to significantly boost output in the short term.
The price of molybdenum concentrate has been rising steadily this year, now exceeding 5,300 yuan per ton-degree. Taking molybdenum concentrate with a 45% molybdenum content as an example, the price per ton is close to 240,000 yuan. Faced with this hot market, companies operating at full capacity are increasing investment in improving metal recovery rates. Tan Xiaole, deputy manager of a mineral processing division, noted that the recovery rate has increased from a previous 90% to over 92%.
Key Data Released: Tight Supply is the Root Cause of Price Increases
Latest market data from a major commodity information provider shows molybdenum concentrate quoted at 5,335 yuan per ton-degree, with a cumulative increase of nearly 36% in the first half of the year. Ferromolybdenum is quoted at 333,000 yuan per ton, with a cumulative increase of nearly 28% in H1. Prices for both products have simultaneously reached nearly three-year highs. Industry experts indicate that structural supply tightness is the core driver of the price hikes.
Shi Jia, a manager specializing in special alloys, revealed that domestic molybdenum concentrate production in H1 2026 was approximately 160,000 tons, a year-on-year increase of only 2.8%. This supply growth rate is far lower than the expansion speed of downstream demand. Furthermore, the potential for further capacity release in China's main molybdenum-producing regions is extremely limited. The supplementary role of imported raw materials is weak. From January to May, imports of effective, high-grade molybdenum concentrate were less than 8,000 tons, accounting for only 4.4% of the total domestic supply of molybdenum concentrate during that period. Effective supply-side increments are difficult to achieve in the short term.
Who are the Major Molybdenum Users? 70% of Demand Comes from Special Steel, with New Sectors Driving Steady Growth
In addition to tight upstream supply, steadily growing downstream demand is another key factor supporting high molybdenum prices. Currently, over 70% of domestic molybdenum demand comes from the special steel sector. Jiang Qiao, General Manager of a major special steel company's sales division, explained that ferromolybdenum not only enhances strength but also meets requirements for toughness and offers good plasticity, while providing excellent high-temperature and corrosion resistance, all of which greatly benefit steel products.
This special steel enterprise's molybdenum-containing steel accounts for 30% of its total output, with annual ferromolybdenum purchases of about 25,000 tons. The continuous rise in raw material prices directly increases production costs, prompting the company to urgently adjust its procurement model to hedge risks. Huang Jianghai, General Manager of the company's procurement center, stated that previously, about 60% of procurement was based on long-term agreement prices, supplemented by roughly 40% spot market purchases. Recently, in response to high ferromolybdenum prices, they have shifted to primarily insisting on long-term agreement procurement, reducing the proportion of spot purchases.
Data shows that domestic steel mills' total ferromolybdenum tender volume in H1 2026 was 82,000 tons, a year-on-year increase of 6%. As China's new energy industry accelerates iteration and high-end equipment manufacturing continues its transformation and upgrade, demand for molybdenum-containing special steel continues to expand. Jiang Qiao noted that demand for molybdenum-containing steel is growing rapidly in areas such as aerospace, deep-sea and deep-earth exploration, energy storage power stations, new energy, hydrogen energy, wind power, and nuclear power development, with an annual growth rate of approximately 10%.
The Reach of Molybdenum is Significant: New Incremental Demand Emerges
Beyond the traditional base in special steel, emerging sectors like new displays, perovskite photovoltaics, and semiconductors are reshaping the demand logic for molybdenum, driving the molybdenum market's upgrade from an industrial necessity to high-end new materials.
At a molybdenum product deep-processing enterprise in Luoyang, Henan, the company is ramping up production of molybdenum tube targets, materials primarily used for display panel coating. Orders have increased noticeably recently. Zhang Lingjie, Chairman of the company, stated that orders have grown over the past two months, with monthly molybdenum product output increasing from around 50 tons to over 70 tons.
This company recently secured a new verification order for perovskite photovoltaics. The company's head indicated that molybdenum tube targets, with their comprehensive properties like high melting point, low resistivity, and good corrosion resistance, are core materials for new photovoltaic cells, representing enormous industry potential.
The semiconductor memory industry is undergoing a material transition. Several leading global memory chip manufacturers are using metallic molybdenum to replace traditional tungsten in next-generation ultra-high-layer chips. Industry insiders point out that molybdenum has lower resistance, requires no barrier layer, and can be filled directly, making it an inevitable technical choice for advanced memory process iteration.
Shi Jia explained that while the current volume in the memory chip sector is relatively small, contributing more to valuation and sentiment premiums, its long-term growth potential is prominent. Within 3-5 years, it is expected to transition from a thematic concept to substantive demand increments. Overall, global energy transition, high-end manufacturing, and AI computing power industry upgrades are bringing long-term structural benefits. Molybdenum is set to become a key strategic new material supporting new energy, semiconductors, and national defense.
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