Molybdenum prices have been running at a high level, reaching a peak not seen in nearly three years. “Substituting tungsten with molybdenum” achieves an attribute shift to “high-end semiconductor strategic material.”

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Recently, news that leading memory chip manufacturers are replacing traditional tungsten with molybdenum for memory word lines has driven strength in related molybdenum industry sectors in China. The price of ferromolybdenum has been running at a high level this year, recently exceeding 300k yuan per ton for the first time in three years. Journalists learned from the industry that although the implementation of the "molybdenum replacing tungsten" technology has generated some market demand, the supply volume is extremely small and highly concentrated, thus having limited impact on the performance of most related listed companies. However, in the long run, molybdenum has transformed from a traditional "byproduct of the steel cycle" into a "strategic core material for semiconductors and high-end manufacturing," completing a shift in attributes from a "traditional cyclical industrial metal" to a "high-end semiconductor strategic material." Its price is expected to maintain a pattern of "center moving upward + high-level volatility." (Securities Times)
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