Global use of molybdenum rose 8% from a year earlier in the second quarter, while production fell 3%, according to the International Molybdenum Association. Demand outran supply by about 10 million pounds in the quarter.
At a glance
- Global molybdenum production fell 3% year on year to 167.2 million pounds in Q2 2026.
- Global use rose 8% to 177.5 million pounds, led by a 10% rise in China.
- South American output dropped 9% to 39.9 million pounds, the biggest fall of any major region.
Background
Molybdenum is a metal added to steel to make it stronger and more resistant to heat and corrosion, especially in stainless and alloy steels used in pipelines, power plants and machinery. Much of it is mined as a by-product of copper in the Americas, while China mines a large share directly. The International Molybdenum Association (IMOA) publishes quarterly figures on global output and use.
What happened
Global molybdenum production fell 3% from a year earlier to 167.2 million pounds in the second quarter of 2026, and 1% from the previous quarter, IMOA said. Global use rose 8% from a year earlier to 177.5 million pounds, though it was 2% lower than in the first quarter.
That left demand about 10.3 million pounds higher than mine supply for the quarter.
Where supply fell
South America drove the decline. Its production fell 9% from a year earlier to 39.9 million pounds. Output from other regions fell 7% to 14.4 million pounds.
China, the largest producer, mined 79.5 million pounds, roughly flat on the year. North American output was also flat at 33.3 million pounds.
Where demand grew
China was again the biggest user at 90.2 million pounds, up 10% on the year. Use in the US rose 12% to 17.1 million pounds, other regions rose 13% to 24.5 million pounds, and Japan rose 5% to 11 million pounds.
Europe, the second-largest user, edged up 1% to 30.7 million pounds. The CIS countries were the exception, with use down 21% to 4.1 million pounds.
What it means
Rising use against falling output points to a tighter market, which tends to support molybdenum prices. For Indian makers of stainless and alloy steel, which rely on molybdenum as an additive, tighter supply can mean higher input costs.
Our read
Outlook: bullish. Use growing 8% while production falls 3% tightens supply. Use did slip 2% from the first quarter, so demand momentum bears watching.
What to watch
- IMOA's third-quarter figures, to see whether the gap between use and production persists.
- Copper mine output in South America, where much molybdenum is mined as a by-product.
- Stainless steel production in China, the largest molybdenum user.
For information only, not investment advice.
Molybdenum price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2026-10-01: IMOA reports Q2 2026 molybdenum production of 167.2 million pounds and use of 177.5 million pounds.
Demand Drivers
Use rose 8% to 177.5 million pounds, led by China's 10% increase.
Supply Drivers
South American output fell 9% to 39.9 million pounds, leading a 3% drop in global production.
What could lift prices
- Use exceeded production by about 10.3 million pounds in the quarter.
- Demand grew in China, the US, Japan and other regions at once.
What could weigh on prices
- Use slipped 2% from the first quarter, hinting at slowing momentum.
- Recovering South American copper output could restore by-product supply.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | It is both the largest producer and the largest user of molybdenum. |
| India | Low | Indian stainless and alloy steelmakers would face higher additive costs if supply stays tight. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Stainless Steel | Negative | Tighter molybdenum supply can raise costs for stainless and alloy steel producers. |
| Base Metals Mining | Positive | Producers benefit from demand growing faster than supply. |
Who gains, who loses
- Molybdenum producers: They sell into a market where use is growing faster than output.
- Stainless and alloy steel makers: They may pay more for molybdenum if supply stays tight.
Other ways this could play out
- If South American output recovers, the supply gap could close in the coming quarters.
- If Chinese demand keeps growing at 10%, the market could tighten further.
Price risks
- A slowdown in steel production would cut molybdenum demand quickly.
- By-product supply depends on copper mining decisions, not molybdenum prices.
Technical view
Price is trading above both its 20-period and 50-period moving averages, a bullish alignment.
Computed from metalscost.com's own stored price history.
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