摘要：Zhongjin Gold announced this week that its subsidiary, Zhongjin Gold Group Inner Mongolia Mining Co., Ltd., has fully restarted pr
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AsianFin -- The exceptionally heated molybdenum market has received long-awaited relief with the resumption of operations at a major mine in Inner Mongolia.
Zhongjin Gold announced this week that its subsidiary, Zhongjin Gold Group Inner Mongolia Mining Co., Ltd., has fully restarted production after more than 40 days of suspension. The company said the shutdown did not have a material impact on overall operations or annual performance.
Yet the temporary closure of one of the country’s most important copper-molybdenum mines had already sent shockwaves through the market, fueling a rapid surge in molybdenum prices and disrupting downstream industries such as specialty steel and chemicals.
With the mine now back online, market sentiment has eased somewhat, and prices have stabilized. Still, analysts warn that volatility and elevated prices are likely to persist, underpinned by structural supply constraints and accelerating demand from emerging industries.
On July 23, 2025, a sudden safety incident at Zhongjin Gold’s Inner Mongolia operation forced a complete halt in mining and processing. In an already tight market, the disruption had an outsized effect.
The mine’s historical annual output is about 11,900 tons of molybdenum concentrate—roughly 3.9% of national production. The suspension effectively removed close to 1,000 tons of monthly supply.
Prices reacted almost immediately. Data shows that molybdenum concentrate (over 55% grade) jumped from 4,050 yuan/tonne on July 24 to 4,650 yuan/tonne by September 8, a 14.8% increase in just six weeks. Even on September 9, after the restart announcement, prices held steady near historic highs.
Although the supply gap accounted for just 1.5% of monthly domestic supply, the impact rippled through the entire value chain. Specialty steelmakers, including Taiyuan Iron & Steel (TISCO), reported ferromolybdenum procurement costs rising more than 10% since the start of the year, forcing price hikes in specialty steel products.
Quantitative analysis suggests that during the 40-day shutdown, the global molybdenum supply-demand gap widened from 848,000 tons to 860,000 tons. The episode exposed the market’s acute sensitivity to even modest disruptions, reflecting structural challenges such as concentrated supply and limited elasticity.
Unlike many commodities grappling with oversupply, molybdenum faces chronic shortages. The metal has entered what analysts describe as a “supercycle,” propelled by both resource constraints and surging demand.
In 2025, global consumption reached 294,100 tons, with new energy industries driving a rapidly growing share. Green technologies now account for about 30% of demand, up from less than 10% just five years ago. Photovoltaic power alone requires roughly 5,000 tons of molybdenum per gigawatt of installed capacity, while electric vehicles and wind power further add to consumption through the use of high-strength steels and superalloys.
Meanwhile, the supply side remains constrained. Environmental regulations and ESG investment requirements have raised costs for mining companies, slowing expansion. Industry data indicates that by 2025, the unit cost of molybdenum mining had risen 75% year-on-year, driven by declining ore grades and stricter compliance spending.
At the same time, resource nationalism is complicating global mining operations. Moves such as the Democratic Republic of Congo’s cobalt export restrictions have indirectly raised costs for associated metals, including molybdenum.
Industry consolidation has also concentrated supply among a handful of players. The top five producers—including CMOC Group (18% of global output) and Jinduicheng Molybdenum (15%)—control 52% of the market. Despite ramp-up efforts, supply remains rigid, making it difficult to respond quickly to demand shocks.
The combined effect of scarcity and rising costs has created a firm price floor. July’s shutdown only accelerated price gains, but even after production resumed, prices remain elevated, showing that structural imbalances, not short-term disruptions, are the real driver of volatility.
Looking forward, the molybdenum market’s trajectory hinges on three factors: supply expansion, demand shifts, and policy developments.
On the supply side, few new greenfield projects are coming online, and existing mines are struggling with lower ore grades. High prices may prompt the restart of idle capacity, but mining projects typically require years of development, limiting short-term responsiveness. In China, ongoing industry consolidation and environmental upgrades may further restrict near-term supply growth.
On the demand side, traditional sectors such as stainless and specialty steel remain key, but new energy industries are steadily lifting the ceiling. Beyond renewables and EVs, high-tech sectors like aerospace, defense, and electronics are increasingly seeking high-purity molybdenum products. The diversification of demand is expected to make molybdenum an even more strategically critical material.
Policy will also play a decisive role. Export controls by resource-rich nations and strategic stockpiling by major importers could reshape global flows and exacerbate regional price differences. Rising geopolitical frictions around critical minerals may add further instability.
Most analysts agree that while prices may undergo technical corrections as supply normalizes, the medium-term outlook points to continued volatility anchored by an upward trend. Any unexpected disruption—whether a mine accident, policy intervention, or surge in demand—could trigger another sharp price spike.
The restart of Zhongjin Gold’s Inner Mongolia mine has provided temporary relief to a strained molybdenum market, but it does not alter the broader picture.
Molybdenum has shifted from a relatively obscure metal to a linchpin of the global energy transition and advanced manufacturing. Its supply-demand dynamics now influence industries far beyond mining, from specialty steel to high-tech components.
As green technologies expand and resource constraints deepen, molybdenum is likely to remain in the spotlight. The story of its volatility is not just about one mine in Inner Mongolia, but about the structural realignment of global commodities in an era of scarcity and strategic competition.
来源：钛媒体
