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On the Shanghai Stock Exchange, Jinduicheng Molybdenum Co. (JDC Co.), which is a listed subsidiary controlled by JDC Group – a leading molybdenum producer globally with a fully integrated molybdenum industry chain – surged to a 16-year high of 31.61 yuan ($4.66) per share on Tuesday June 23.
“JDC is the only moly producer in China whose operations span from molybdenum mining, beneficiation, smelting, and deep processing to production of advanced molybdenum products, including high-purity molybdenum powder and molybdenum-based target materials used in semiconductor applications, positioning the company to benefit from growing demand for advanced materials driven by investment in AI and next-generation chip production,” a Chinese molybdenum producer source said.
The molybdenum-related rally gained momentum likely after memory chipmaking giant SK Hynix on June 11 announced progress in commercializing a new generation of 375-layer 3D NAND flash technology that uses molybdenum instead of tungsten in the fabrication of word lines, raising expectations that semiconductor demand could become a new growth driver for the metal, according to sources.
With flash memory chip manufacturers continuing to increase the number of memory layers to boost storage density and capability, tungsten is facing growing technical limitations, and molybdenum is emerging as a promising alternative.
Industry studies indicate that tungsten’s resistivity rises significantly as device dimensions shrink, slowing signal transmission and increasing power consumption. Molybdenum, meanwhile, exhibits lower effective resistivity at nanoscale dimensions, allowing faster signal transmission and improved performance. It also eliminates the need for a separate barrier layer in certain NAND structures, freeing up space and enabling denser memory architectures.
A second Chinese molybdenum producer source said molybdenum’s lower electrical resistance and higher signal transmission efficiency have made it increasingly attractive for applications including AI-related computing, particularly against a backdrop of ongoing technology upgrades and higher tungsten prices.
Prior to SK Hynix, Samsung began using molybdenum in the metallization process of its ninth-generation (Gen 9) V-NAND products in 2024.
“Many NAND flash manufacturers have been replacing tungsten with molybdenum in metal gate applications,” Jeongyeon Cho, a semiconductor process engineer at Samsung Electronics, told Fastmarkets. “I expect next-generation NAND flash devices to increasingly adopt molybdenum gates over the next few years until another suitable material is developed, which could support continued growth in molybdenum demand.”
“This is definitely positive news for the molybdenum market, although the actual increase in demand is likely to be modest. In the short term, I expect additional demand of around 80 tonnes of molybdenum. Nevertheless, we would be very interested in this business opportunity if any customers approach us for molybdenum used in semiconductor applications,” a Japan-based molybdenum trader said.
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Great volatility in tungsten markets was one of the reasons behind growing interest in the replacement of tungsten with molybdenum, according to sources.
Tungsten prices skyrocketed from the second half of 2025 to the first quarter of 2026 likely due to resilient demand and tight supplies, but the prices have sharply pulled back in recent months, with the high prices, weak demand, and ample inventories keeping downstream users on the sidelines, sources told Fastmarkets.
Fastmarkets’ weekly price assessment for tungsten concentrate 65% WO3, in-whs China hit a record high of 1,025,000 yuan ($151,031) per tonne at the midpoint on March 11, before retreating to 495,000 yuan per tonne on July 1.
Market participants said that cost considerations will come under the spotlight and spark discussions about molybdenum substitution whenever tungsten prices see strong rallies.
But sources added that molybdenum is unlikely to replace tungsten completely in various applications. Tungsten’s higher melting point means it continues to dominate many high-temperature applications such as aerospace, nuclear tech, and electronics.
Despite excitement surrounding the semiconductor story, industry participants remain cautious about the scale of near-term molybdenum demand growth.
Molybdenum consumption remains overwhelmingly tied to steel production, where the metal is primarily used as an alloying addition in stainless, specialty and high-strength steels, and steel accounts for about 80% of global molybdenum consumption. China remains both the world’s largest molybdenum producer and consumer, according to industry studies.
Market sources said semiconductor applications are likely to represent a high-value but relatively small-volume segment for molybdenum demand over the next several years.
The wider adoption of molybdenum in semiconductors is unlikely to trigger a major demand shock in the near term but could gradually diversify demand away from the steel sector and increase the metal’s exposure to semiconductor and AI investment cycles, the first Chinese molybdenum producer source said.
“This is not a demand shock yet, but it is a strategic shift that links molybdenum to the semiconductor cycle,” a Chinese industry analyst said.
Molybdenum producers capable of meeting stringent purity and qualification standards required by chipmakers would likely benefit the most from this round of semiconductor surge, sources said.
The first Chinese molybdenum producer source said their company – which owns mines and produces various molybdenum products – is planning to expand their production to further downstream products to meet growing demand from sectors beyond steel production and increase competitiveness across the industry.
Market sources added that raw material availability is not the primary challenge. Instead, suppliers must satisfy demanding quality specifications and complete lengthy customer approval processes before entering semiconductor supply chains.
Aside from the semiconductor narrative, molybdenum prices have already been bolstered by tight supplies and strong demand, sources told Fastmarkets.
Molybdenum prices have risen sharply so far this year, likely thanks to a limited increase from mine supplies and steadily growing demand from the stainless steel sector. Constraints to mine development and permitting challenges and delays in bringing new projects online have capped the supply increase of molybdenum concentrate, sources added.
Fastmarkets’ daily price assessment for molybdenum MB drummed molybdic oxide Mo, in-whs Busan, hit a high not seen in over three years at $31.45 per lb at the midpoint on May 12. The assessment continued to hover at such high levels in recent weeks and returned to $31.45 per lb on July 2.
Supply expansions and new projects are, however, expected to come online in China in coming years, while major copper-molybdenum mines in North and South America are also planning to increase output, which will ease supply tightness and reduce support to prices.
In May, the Caosiyao molybdenum deposit in northern China’s Inner Mongolia got the nod from the nation’s natural resources authorities for mining rights and licenses, entering the development stage, according to official reports.
The deposit contains 1.035 billion tonnes of molybdenum ore and 1.089 million tonnes of contained molybdenum, placing it among China’s largest molybdenum resources. With nearly 10 billion yuan of investment, the project will be developed through open-pit and underground mining with an annual ore processing capacity of 16.5 million tonnes and an 81-year mine life, with production scheduled to begin in 2028.
With proven recoverable molybdenum metal resources of 2.10 million tonnes, the world’s second-largest molybdenum mine – Shapinggou – officially started the construction of a beneficiation project in Jinzhai County, eastern China’s Anhui Province, in June and is also expected to start production in 2028, according to the project’s major owner, Zijin Mining Group.
In the near term, industry analysts expect the molybdenum market to remain mostly supported by its traditional steel-consuming sector. “Semiconductor demand provides a longer-term growth story rather than an immediate driver of global consumption,” the Chinese industry analyst said.
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