Japanese Chemical Trader blog

Japan Chemical Trading Blog

Molybdenum

The price of molybdenum is increasing. International index LME increased from USD23.50 per kg at the end of March to the latest USD29.50 per kg, an increase by about 25%.

Molybdenum is a metal produced mainly as a by-product of copper and among the main producers are the U.S., Chile, and China. Molybdenum is mainly used as an additive to special steel for automobile use and as a raw material of catalyst.

The price of molybdenum has been on the increase since just after the earthquake in Chile, one of the main producing countries, in early April as well as the background of robust demand led by the stable increase in the automobile production.

Historically, the price of molybdenum had been hovering around at lower than USD10 per kg for a long time until 2000. However, it started to increase around 2002, and before the financial crisis, recorded the highest price in the market at more than USD70 per kg.