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Molybdenum is a non-renewable strategic resource that, thanks to its excellent properties, is widely used in industries such as steel, chemicals, **, electronics, computers, biomedicine, and agriculture. Although our country has abundant molybdenum resources, the per capita amount is very low. After joining the WTO, China’s molybdenum industry inevitably accelerated its integration into the mainstream of the international community, and alignment with international standards has gradually taken shape. In this new historical period, it is essential for China’s molybdenum industry to seize the opportunities and challenges brought about by joining the WTO, to develop and utilize its valuable molybdenum resources in an orderly, rational, and effective manner, to standardize the production and operation practices in this sector, and to enhance the overall competitiveness of Chinese molybdenum products. It is also important to make use of WTO rules to resolve international trade disputes and protect the interests of both the molybdenum industry and those involved in its production and operation, so as to promote sustainable, stable, and healthy development for this industry and enable China to transform itself from a country rich in molybdenum resources, a major producer, and a significant trader into a true powerhouse in the molybdenum economy. 1. Current Situation of China’s Molybdenum Industry 1.1 China’s Molybdenum Resources China is rich in molybdenum resources; by the end of 1999, the total reserves of molybdenum metal in China amounted to 8.336 million tons, ranking it second in the world. Among them, the reserves in categories A+B+C amount to 3.371 million tons, accounting for 40.44% of the total reserves. There are 219 large, medium, and small molybdenum mining areas with proven reserves, distributed across 28 provinces, municipalities, and autonomous regions nationwide, but they are primarily concentrated in regions such as Shaanxi, Henan, Jilin, Liaoning, and Zhejiang. The major molybdenum mining areas include the Jinduicheng molybdenum area in Shaanxi Province, the Luanchuan molybdenum area in Henan Province, the Dahuishan molybdenum area in Jilin Province, the Gangtun molybdenum area in Liaoning Province, and the Qingtian molybdenum area in Zhejiang Province. In our country, molybdenum resources are mainly found in primary molybdenum mines, and there are more low-grade ores than high-grade ones; the average grade is only 0.1%. In the United States, 68% of molybdenum comes from by-products, with an average grade of 0.2%. 1.2 Production Status of the Molybdenum Industry in China Molybdenum products are generally classified into: primary molybdenum products (molybdenum concentrate, molybdenum oxide, ferromolybdenum), molybdenum chemical products (ammonium molybdate, sodium molybdate, barium molybdate, etc.), and molybdenum metal products (molybdenum powder, molybdenum bars, molybdenum plates, molybdenum rods, molybdenum wires, molybdenum shaped parts, etc.). 1.2.1 Production of molybdenum concentrate The main production areas for molybdenum concentrate in China are five in number. The first site is the Jinduicheng Molybdenum Mining Area in Shaanxi Province, whose main operator is Jinduicheng Molybdenum Industry Company. It has a daily processing capacity of 25,000 tons, with an annual output of around 25,000 tons of molybdenum concentrate. High-quality molybdenum concentrate (with Mo content of ≥52%) can be produced there; this company is the only one in China that can manufacture molybdenum concentrate of such high quality, on par with similar products from the United States. Other molybdenum mining companies in China are only able to produce ordinary molybdenum concentrate (with a Mo content of 45%-48%). The second area is the molybdenum mining region in Luanchuan, Henan. The large-scale molybdenum processing enterprises there include: Luanchuan Molybdenum Industry Group Company, which produces around 10,000 tons of molybdenum concentrate per year; Luanchuan Chitudian Lead-Molybdenum Processing Plant, which produces over 1,000 tons of molybdenum concentrate per year; Luowei Molybdenum Mining and Metallurgy Co., Ltd., which produces more than 2,000 tons of molybdenum concentrate per year. There are also many other small-scale processing plants operated by local communities, collectives, and individuals. In 2001, in Luanchuan County, **to ensure mining safety, it was ordered that all processing plants that used large quantities of ore must use ore mined by the Luoyang Luanzhong Molybdenum Industry Group from an open-pit mine with a production capacity of 5,000 tons per day. The grade of the raw ore dropped from 0.3%-0.4% in the case of underground mining to just 0.13%. This measure helped to curb unauthorized mining activities by various towns, collectives, and individuals, resulting in a decrease in the output of molybdenum concentrate in that region. The third area is the Gangtun molybdenum mining region in Liaoning, with Huludao Molybdenum Industry Company being the main mining and processing enterprise. It produces over 2,000 tons of molybdenum concentrate per year, and the average grade of the ore extracted over the past 10 years has been 0.8%. The fourth area is the Qingtian molybdenum mining region in Zhejiang Province, where the ore grade is relatively high; the average molybdenum content is 0.21%, with some areas having grades as high as 3%-5%. There are over 40 mines operating there, producing around 5,000 tons of molybdenum concentrate per year. The fifth area is the Dahei Mountain molybdenum mining district. This mine produces over 1,000 tons of molybdenum concentrate per year. Although it has large reserves of molybdenum, the average grade is very low at 0.066%, which results in high production costs. 1.2.2 Production of molybdenum oxide and ferromolybdenum There are many ferromolybdenum production enterprises in China, but their scale is small; about 60% of these enterprises have an annual production capacity of less than 1,000 tons, with the smallest ones producing only 200 tons. The output of these small enterprises accounts for around 30% of the total ferromolybdenum production. The quality of their products is poor, and most of them use the roasting residue of molybdenum as raw material to produce ferromolybdenum, employing the open-heap method in this process. Moreover, in almost all places where molybdenum concentrate is produced, molybdenum oxide and ferromolybdenum are also manufactured. Due to the small scale of these enterprises, most of the roasting equipment used are reverberatory furnaces; those with a slightly larger scale employ rotary kilns. However, this equipment is relatively outdated, resulting in poor quality molybdenum ore products, severe environmental pollution, and inadequate treatment of sulfur dioxide emissions. The main manufacturers of molybdenum oxide and ferromolybdenum in China include Jinduicheng Molybdenum Industry Company, Luanchuan Molybdenum Industry Group Company, Jinzhou Shenhong Industrial Co., Ltd., Xuzhou Huanyu Ferroalloy Co., Ltd., and Xuzhou Ferroalloy Factory. The largest molybdenum smelting plant in China is the Lianhuasi Smelting Plant of Jinduicheng Molybdenum Industry Company; this plant is capable of producing over 2,000 tons of molybdenum oxide and ferromolybdenum per year, accounting for 25%-30% of the total domestic production. The quality of its products meets the standards required by Western factories, and its prices are on par with those in the West. Other domestic manufacturers produce products with lower molybdenum content and higher levels of impurities, which means their prices are 5%-8% lower than those in the West; such products are referred to as “Chinese molybdenum”. In 1995 and 1996, China’s production of molybdenum oxide and ferromolybdenum reached over 30,000 tons; in 1997 it exceeded 50,000 tons, and since 1998 it has remained above 60,000 tons. The significant increase in the production of molybdenum oxide and ferromolybdenum in our country is mainly due to exports. As Western developed countries have imposed restrictions on the production of low-value-added products such as molybdenum oxide and ferromolybdenum, which cause severe pollution and high energy consumption, Chinese producers in the molybdenum industry, driven by profit motives, filled this gap in the international market by exporting large quantities of these products. This has generated substantial foreign exchange and contributed to the development of China’s molybdenum industry. But while we are generating foreign exchange through exports, we are also suffering the consequences of environmental pollution. 1.2.3 Production of molybdenum chemical products The main molybdenum chemical products produced in China include: ammonium molybdate, sodium molybdate, barium molybdate, molybdenum disulfide powder, molybdenum disulfide lubricant, molybdenum pigments, and molybdenum catalysts. It is estimated that the domestic production capacity for ammonium molybdate is around 18,000 tons; in 2001, the actual production volume was about 8,200 tons, of which 2,827 tons were exported ； In 2002, the actual production volume was over 10,000 tons, of which about 3,000 tons were for domestic demand, while 1,758 tons of ammonium molybdate were exported. The main domestic manufacturers of ammonium molybdate include: Xi’an Huamo New Materials Co., Ltd. and Jinmo Technology Co., Ltd. affiliated with Jinduicheng Molybdenum Industry Company; Dongtai Fengfeng Tungsten and Molybdenum Products Co., Ltd.; Fuzhou Fuyuan Non-ferrous Metals Products Co., Ltd.; Qingtian Jianshi Molybdenum Chemical Co., Ltd.; and Anqing Yueshan Copper Mine Metallurgical Chemical Plant, among others. At present, the company with the highest quality ammonium molybdate in China is Jinmo Technology Co., Ltd., affiliated with Jinduicheng Molybdenum Industry Company. Its ammonium molybdate production line is equipped with a complete set of American-made equipment, while its tetramolybdate ammonium production line utilizes advanced domestic equipment and sophisticated production processes. Its production and sales volumes rank among the highest among domestic competitors. In addition, the company has established a 400 t/a production line for high-purity molybdenum disulfide powder, as well as production lines for organic molybdenum compounds and reagents. The output of high-purity molybdenum disulfide powder is increasing year by year, and its market share both domestically and internationally is also on the rise. Dongtai Fengfeng Tungsten Molybdenum Products Co., Ltd. also ranks among the top in China in terms of the production volume and quality of ammonium molybdate, which is primarily used to manufacture molybdenum slabs for sale in the international market. Other molybdate compounds such as sodium molybdate and barium molybdate are not produced in large quantities in China. According to statistics, in 2001 the production capacity for these other molybdate compounds was over 1,500 tons, of which 1,469 tons were exported ； In 2002, the production volume was around 2,000–3,000 tons, of which 1,797 tons were exported. In recent years, although China’s molybdenum chemicals industry has made some progress and a small number of its products have reached international advanced levels, there are still gaps compared to foreign counterparts in terms of quality and the variety of products available. In the United States, there are around 20 companies that produce molybdenum-containing catalysts for hydrodesulfurization and reforming in petroleum refining, while Europe has 16 such companies. There are dozens of different types of these catalysts available. In China, however, only a few manufacturers produce them, and their output is not sufficient to meet domestic demand; as a result, some catalysts still need to be imported. In terms of molybdate production, China mainly relies on ammonium molybdate, while abroad there are thousands of different varieties; products such as diamine molybdenum, β-dimolybdenum, and molybdenum sulfate, which are produced abroad, do not exist in China. 1.2.4 Production of molybdenum metal products The types of molybdenum metal products in China include: molybdenum powder, molybdenum strips, molybdenum rods, molybdenum bars, molybdenum slabs, molybdenum blocks, molybdenum electrodes, molybdenum discs, molybdenum wires, sprayed molybdenum, molybdenum tips, molybdenum crucibles, and other molybdenum-based metal products. The average annual production of molybdenum metal products in China from 1992 to 1999 was 1,600 tons; it rose to 1,800 tons in 1999, 2,200 tons in 2000, around 3,000 tons in 2001, and nearly 4,000 tons in 2002. Overall, the variety, specifications, and production volume of molybdenum products undergoing deep processing in China have been increasing year by year, sufficient to meet domestic market demands. There are over 40 manufacturers of molybdenum products in our country, including: Jinhuo in Huamo New Materials Co., Ltd., Dongtai Fengfeng Tungsten and Molybdenum Products Co., Ltd., Zigong Cemented Carbide Co., Ltd., Zhuzhou Cemented Carbide Factory, Shandong Guangming Tungsten and Molybdenum Co., Ltd., among others. Jinduicheng Molybdenum Industry Company now has a production capacity of 800 tons per year for molybdenum powder, 600 tons per year for sintered products, and 300 million meters per year for molybdenum wires. It has also developed various metal products such as molybdenum tips, molybdenum discs, molybdenum electrodes, and molybdenum narrow strips ； The molybdenum powder and molybdenum bars produced by Zhuzhou Cemented Carbide Factory have stable performance and are of high quality in China ； The general molybdenum wires produced by Shandong Guangming Tungsten Molybdenum Co., Ltd. boast excellent quality in China and the highest production volume; followed by Chengdu Hongbo Industrial Co., Ltd ； The wire cutting molybdenum wires produced by Nanjing Pudong Tungsten Molybdenum Products Co., Ltd. and Ganzhou Hongfei Tungsten Molybdenum Materials Co., Ltd. are of good quality ； The sprayed molybdenum powder and sprayed molybdenum wires produced by Zigong Cemented Carbide Factory are of leading quality in China, meeting the standards of advanced foreign products, thanks to the adoption of a complete set of Japanese equipment ； Molybdenum wires for electric light sources are entirely imported; the quality of such products domestically does not meet standards ； The molybdenum foil and molybdenum tubes produced by Baoji Rare Metals Processing Factory are of high quality ； The molybdenum discs produced by Guangzhou Zinc Sheet Factory are of high quality, and it is the manufacturer with the largest export volume of molybdenum discs in China ； The molybdenum crucibles and molybdenum electrodes produced by Antai Technology Co., Ltd. are of the highest quality, reaching the standard of similar products from Prancis; they are also used to manufacture high-precision molybdenum components for military applications, yielding excellent results. Molybdenum metal products are high-tech, high-value-added goods. Due to issues such as domestic production processes, equipment, and management systems, it is difficult for China’s molybdenum metal products to meet the standards set by foreign buyers, which in turn affects the export of such products. 1.2.5 The trade situation of molybdenum products in China Since 1995, China has maintained a positive trade surplus in molybdenum exports. The main products exported are molybdenum oxide and ferromolybdenum, which account for over 90% of the total export volume. Since 1995, China’s total exports of molybdenum products have increased significantly year by year due to the rise in exports of molybdenum oxide and ferromolybdenum. However, since 2001, there has been a sharp decline in the export volume of ferromolybdenum, while the export volume of molybdenum oxide has increased considerably ； China’s imports of molybdenum products mainly consist of molybdenum ore sand and its concentrate (i.e., molybdenum concentrate). Since 1995, the import volume of molybdenum ore sand and its concentrate has increased significantly year by year, accounting for over 80% of the total imports, with some years seeing a proportion even exceeding 90%. However, in 2002, the import volume of these products dropped sharply, by 62.05%. It is worth noting that the import volume of molybdenum ore sand that had been roasted in 2002 was 3,078.08 tons, representing a year-on-year increase of 68.81% ； The export volume of molybdenum wire was 127.13 tons, representing a year-on-year increase of 68.81%. Although the volume of molybdenum wire exports is not large, it is showing significant growth. According to investigations, on August 8, 2001, the EU imposed temporary anti-dumping duties of 3.6%-26.3% on molybdenum iron exported from our country. On February 7, 2002, the EU officially decided to impose an anti-dumping duty of 22.5% on such exports, thereby preventing our country’s molybdenum iron from entering the EU market. At the same time, the EU shifted from importing molybdenum iron to importing molybdenum oxide instead. Due to the strict environmental regulations in the EU, it is necessary to import molybdenum oxide with a high molybdenum content and low impurities to produce ferromolybdenum, or to directly add molybdenum oxide balls in steelmaking. In the past, producers in China’s molybdenum industry would import high-quality molybdenum concentrate from regions such as Latin America and mix it with domestically produced low-quality molybdenum concentrate, then process it into molybdenum oxide or ferromolybdenum for sale on the international market. However, due to the EU’s large-scale imports of high-quality molybdenum oxide, there was a shortage of such high-quality molybdenum concentrate on the international market, which led to a significant reduction in China’s imports of molybdenum ore and its concentrate.