Breaking News! What Is the Impact of Export Controls on Molybdenum-Related Items? [SMM Analysis]

According to the website of the Ministry of Commerce, on February 4, the Ministry of Commerce and the General Administration of Customs issued an announcement to impose export controls on items related to tungsten, tellurium, bismuth, molybdenum, and indium. The announcement took effect upon its release. The original text is as follows: Announcement No. 10 of 2025 by the Ministry of Commerce and the General Administration of Customs Decision to Impose Export Controls on Items Related to Tungsten, Tellurium, Bismuth, Molybdenum, and Indium In accordance with the relevant provisions of the Export Control Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China, the Customs Law of the People's Republic of China, and the Regulations of the People's Republic of China on Export Control of Dual-Use Items, and to safeguard national security and interests and fulfill international obligations such as non-proliferation, the State Council has approved the decision to impose export controls on the following items:

Molybdenum-Related Items

(1) 1C117.b. Molybdenum powder: Molybdenum and alloy particles with a molybdenum content (by weight) of 97% or more and a particle size of 50×10-6m (50μm) or less, used for manufacturing explosive components (reference customs commodity code: 8102100001).

(2) 1E101.b. Technology and materials for producing items under 1C117.b (including process specifications, process parameters, processing programs, etc.).

Based on the import and export data from 2024: China is a major producer of molybdenum products, with a molybdenum powder production of 22,000 mt in 2024. However, the absolute export volume is relatively small, having a relatively small impact on the domestic molybdenum market.

On the export side: In 2024, China's total export volume of molybdenum products was approximately 43,000 mt, while the export volume of molybdenum powder was 287.7 mt. Since molybdenum powder accounts for only a relatively small proportion of molybdenum export demand, the overall impact on the molybdenum market is relatively small.

From the perspective of export destinations, in 2024, China's molybdenum powder was mainly exported to Japan, the US, Russia, South Korea, and the Netherlands, accounting for about 98% of the total export volume. Among them, exports to Japan amounted to approximately 160.8 mt, accounting for 56%, while exports to the US totaled about 59.4 mt, accounting for 21%. From the above data, it can be seen that the export controls on molybdenum powder may have a greater impact on Japan and the US.