Moly

Molybdenum (Mo) was first used commercially in 1894 by the French Schneider Electric company to produce molybdenum-steel armor plates, making moly a high demand industrial metal throughout World War I and II. Demand waned afterwards through much of the 20^th century, but the silvery white metal came back on the scene in this century as one of the best-performing industrial use metals prior to the global economic downturn of late 2008.

Despite falling off the radar for a few years, moly is quickly making a comeback in the industrial metals markets as demand heats up in step with a rebound in traditional use sectors as well as in the development of new greener and cleaner technologies.

According to the International Molybdenum Association (IMOA), moly occurs naturally only in chemical combination with other elements. Although several molybdenum-bearing minerals have been identified, only one is suitable for industrial production: molybdenite (MoS₂) – a natural molybdenum sulfide. “In ore bodies, molybdenite is generally present in quantities from 0.01-0.25% and is often associated with the sulfide minerals of other metals, notably copper,” notes IMOA.

Molybdenum also has the sixth-highest melting point of any element and is one of the least corrosive metals, which makes it a key component in high-strength steel alloys.

Conventional Uses

The manufacture of tools, high-speed steel, stainless steel, and low-alloy steel accounts for about 80 percent of molybdenum demand, reports the IMOA, with about 10 percent of world stainless steel containing moly.

Although most high-strength steel alloys contain a relatively small amount of moly (0.25 percent to 8 percent), over 43,000 tonnes of Mo are used annually as an alloying agent.

Applications include hospital equipment, nuclear and fossil fuel power plants, turbine engines, offshore drilling rigs, desalination plants, electrical contacts, specialty high-performance lubricants, filaments, flame retardants, and aircraft parts.

Twenty-First Century Green and Clean Uses

The next generation of molybdenum uses includes cleaner and greener resource extraction and energy production technologies.

Its anti-corrosive properties aid in the production of oil from the tar sands and in offshore drilling to help prevent leaks, and crude oil refineries use it as a catalyst in refining to remove sulfur. Moly’s environmental protection uses extend to nuclear power reactors as well. Global growth in the nuclear industry is dependent on easing the public’s fears about the potential dangers posed by nuclear power. The metal’s radioactive-resistant properties and relative strength amongst its industrial counterparts make it the perfect metal for such applications. Its renewable energy uses include geothermal (drill bits), solar (electrical connectors) and wind power (propellers) generation. The use of light-weight moly in auto manufacturing allows for the production of higher fuel-efficient and safer vehicles.

Major Producing Regions

The world’s largest producers of molybdenum materials are the United States, China, Chile, Peru and Canada. According to IMOA, North America produces 33 percent of worldwide output, followed by China at 31 percent, and South America at 29 percent.

Molybdenum Futures on the London Metals Exchange

While molybdenum stocks still offer the best way to profit from bullish trends in the moly market, the LME began offering trade in publicly-available molybdenum futures on February 22, 2010.

For information on moly prices on the LME click here.