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Larger Russian supplies and weaker industrial demand move palladium market toward balance in supply and demand
FOCUS
MARKETS AND BUSINESS The platinum market remains strong as industrial and auto sector increases offset a reduced demand for jewelry Strong demand from the automotive, industrial and investment sectors compensated for weakness in the jewelry sector, and kept the platinum market in deficit in 2016. Investment purchasing rose by over a third, with exceptionally strong sales of platinum bars to Japanese investors. Sales of platinum to automakers were at their highest level since 2008, boosted by higher European diesel car output, and the full implementation of Euro 6b emissions legislation. Industrial consumption reached a fiveyear high, on the back of strong demand from Chinese glass and chemicals producers. These gains were offset by a sharp contraction in jewelry fabrication demand in China, where weak retail activity led to destocking in the distribution chain. With primary supplies flat, and limited growth in autocatalyst recycling, the market remained in a modest deficit of 202,000 oz. With jewelry, autocatalyst and investment demand forecast to slow, the platinum market is predicted to move into surplus in 2017 for the first time in six years. Chinese jewelry fabrication is expected to contract again, while automotive demand will be hit by changes in catalyst technology in Europe, in response to the introduction of Real Driving Emissions testing. Investment demand is forecast to remain positive, but at lower levels than in the last two years, as purchasing by Japanese investors slows. While industrial demand will remain firm, and both primary supplies and recycling are expected to drop, this is unlikely to be enough to keep the market in balance.
Original Source: Johnson Matthey Precious Metals Management, 15 May 2017 (Website: http://www.platinum.matthey.com/) ã Johnson Matthey Precious Metals Management 2017.
Larger Russian supplies and weaker industrial demand move palladium market toward balance in supply and demand The palladium market moved closer to balance in 2016, despite a 23% rise in demand from Chinese automakers and lackluster recycling activity. Chinese auto demand surged above 2 M oz, as a reduction in vehicle purchase taxes lifted passenger car sales by more than 15%. However, industrial demand softened, while higher prices triggered heavy profit-taking by ETF investors. With supplies rising 5% on the back of Russian destocking, the palladium market deficit fell to 163,000 oz. World automotive demand is forecast to exceed 8 M oz for the first time, with further growth in world gasoline car production and tighter emissions legislation in China, Europe and North America. There is potential for further profittaking in the investment sector, but the rate of liquidation is predicted to slow following two years of heavy disinvestment. With firm prospects for industrial demand, especially from Chinese bulk chemicals producers, it is predicted that total gross demand will rise by more than 7% to exceed 10 M oz. Although the autocatalyst recycling sector should see some recovery after two years of depressed activity, primary palladium
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supplies are predicted to be lacklustre. As a result, the market deficit is forecast to widen significantly to 792,000 oz.
Original Source: DuPont, 15 May 2017, (Website: http://www2.dupont.com/) ã DuPont 2017.
Molybdenum: Global surplus to fall to 1 M lb. Sojitz forecast a small market surplus of 1 M lb molybdenum. World molybdenum demand is estimated to remain stable at 341 M lbs, as lower crude oil prices lead to weak pipeline demand. Supply is projected to drop by 6% to 342 M lb, due to reduced output by US and Canadian producers. In addition, scale up of the Sierra Gorda project in Chile has been delayed. Output was estimated at 25 M lb in 2016. The Chilean project is owned by Sumitomo Metal Mining (31.5%), KGHM (55%) and Sumitomo (13.5%). Japanese demand for molybdenum was weak and imports of sintered ores dropped by 8% year-on-year to 17,532 tonnes in 1H 2016. Higher imports from Chile were more than offset by lower shipments from Canada and the US following the placement of Endako and Thompson Creek mines on care-and-maintenance. In contrast, Japanese imports of molybdenum oxides and hydroxides increased by 12% year-onyear to 1705 tonnes in 1H 2016, reflecting higher demand in the catalysts industry. Shipments from China doubled to 1327 tonnes and China accounted for nearly 80% of total shipments. Chinese exports of sintered molybdenum ores increased by 42% year-on-year to 1704 tonnes in 1H 2016, as international market prices rose above domestic prices. Shipments of ferro-molybdenum increased by 265% to 651 tonnes over the same period. Four tables show Chinese exports of molybdenum by country of destination in 20122016, Japanese imports of sintered molybdenum ores by country of origin in 2012-2016, forecast world supply of molybdenum by operation in 20132016, and forecast world molybdenum demand by region in 2013-2016. Two bar graphs show the forecast world molybdenum production by operation and molybdenum demand by region in 2013-2016.
Original Source: Roskill, Oct 2016, 7-10 (Website: http://www.roskill.com) ã Roskill 2016.
Synthetic zeolites market worth $16.28 bn by 2022. According to the report “Synthetic Zeolites Market by Type (Zeolite A, Zeolite Y, Zeolite X, Zeolite Zsm-5), Application (Detergents, Catalysts, Adsorbents), and Region - Global Forecast to 2022”, published by MarketsandMarkets, the market was valued at $13.67 bn in 2017 and is projected to reach $16.28 bn by 2022, at a CAGR of 3.6% between 2017 and 2022.
Original Source: MarketsandMarkets, 2017, Found on PR Newswire, 22 Jun 2017, (Website: http://www.prnewswire.com).
2025, according to a new report by Grand View Research Inc.
Original Source: Grand View Research Inc, 2017. Found on PR Newswire, 29 Jun 2017, (Website: http://www.prnewswire.com).
Large-scale U.S. projects in the plastics industry The ACC's “Petrochemical Update” reported that there are nearly 9 M tonnes/y of new ethylene capacity declared as of Dec 2016. These projects are forecast to be completed by 2H 2019. New polyethylene projects with a total of nearly 8 M tonnes/y capacity were also approved. Capital spending in the plastics market is set to increase by 6.4% to $6.5 bn in 2017. In Feb 2017, Taiwanese firm Formosa Petrochemical secured an approval to build a $9.4 bn facility in St James Parish, LA, US, which will start production in 2021. The first phase of the plant will include 1.2 M tonnes/y of ethylene and 600,000 tonnes/y of propylene, while the second phase will include an additional ethylene complex of a similar size and polyethylene and other polyolefins plants. In mid-2016, LyondellBasell disclosed that it intends to construct a high-density polyethylene facility in La Porte, TX, with a capacity of about 500,000 tonnes/y. Initial production is expected by 2019. Exxon Mobil and SABIC are considering a partnership to build a facility in the US Gulf Coast. The joint venture will include a 1.8 M tonnes/y ethylene steam cracker and downstream facilities. PTT Global is considering building a billion-dollar facility in Ohio to manufacture polyethylene and other plastics. The ACC reported that about 50% of the industry's output in the US would be marketed overseas by 2030. Evonik Industries finished the purchase of Air Products’ speciality additive segment for $3.8 bn in early 2017 and now intends to acquire JM Huber's silica gel unit in the US. Evonik Industries also declared in end-2016 its plan to construct a $120 M precipitated silica facility for the tyre industry in South Carolina. Wacker Chemie is set to invest about $150 M for a new fumed silica manufacturing plant with a capacity of about 13,000 tonnes/y in Charleston, SC. The Energy Information Administration (EIA) said that the US crude oil production has increased again since Oct 2016. The EIA anticipates a moderate growth in funding for 2017 and 2018 and an increase from $43.30/barrel to $56.20/barrel in the average annual price in West Texas Intermediate basis by 2018. The EIA also forecast a strong growth in the natural gas condensates production in the medium term. The American Petroleum Institute (API) estimates the average natural gas condensates output in Jan 2017 to be nearly 3.5 M barrels/d. The API said that the total oil refineries capacity in the US stood at nearly 18.5 M barrels/d in 2016, an increase of 400,000 from 2015. The average capacity utilization increased by 0.3 percentage points to 89.7% against in Jan 2016. Market researcher OG Analysis said that the production capacity in the sector is anticipated to increase by 6.3% in 2020. Market researcher Industrial Info Resources said that petroleum refineries in Canada and the US will spend nearly $14.5 bn for projects that will enter the construction phase in 2017.
Original Source: Nachrichten fuer Aussenhandel, 7 Jun 2017, (Website: http:// www.maerkte-weltweit.de) ã MBM Martin Brueckner Medien GmbH 2017.
Molecular biology enzymes, kits, and reagents market worth $26.7 bn by 2025
Automotive sector drives demand for lithium: Roskill
The global molecular biology enzyme, kits and reagents market is expected to reach $26.7 bn by
As reported by Roskill, the global market for lithium-ion (Li-ion) batteries has reached 87 GWh
August 2017
MARKETS AND BUSINESS The platinum market remains strong as industrial and auto sector increases offset a reduced demand for jewelry Strong demand from the automotive, industrial and investment sectors compensated for weakness in the jewelry sector, and kept the platinum market in deficit in 2016. Investment purchasing rose by over a third, with exceptionally strong sales of platinum bars to Japanese investors. Sales of platinum to automakers were at their highest level since 2008, boosted by higher European diesel car output, and the full implementation of Euro 6b emissions legislation. Industrial consumption reached a fiveyear high, on the back of strong demand from Chinese glass and chemicals producers. These gains were offset by a sharp contraction in jewelry fabrication demand in China, where weak retail activity led to destocking in the distribution chain. With primary supplies flat, and limited growth in autocatalyst recycling, the market remained in a modest deficit of 202,000 oz. With jewelry, autocatalyst and investment demand forecast to slow, the platinum market is predicted to move into surplus in 2017 for the first time in six years. Chinese jewelry fabrication is expected to contract again, while automotive demand will be hit by changes in catalyst technology in Europe, in response to the introduction of Real Driving Emissions testing. Investment demand is forecast to remain positive, but at lower levels than in the last two years, as purchasing by Japanese investors slows. While industrial demand will remain firm, and both primary supplies and recycling are expected to drop, this is unlikely to be enough to keep the market in balance.
Original Source: Johnson Matthey Precious Metals Management, 15 May 2017 (Website: http://www.platinum.matthey.com/) ã Johnson Matthey Precious Metals Management 2017.
Larger Russian supplies and weaker industrial demand move palladium market toward balance in supply and demand The palladium market moved closer to balance in 2016, despite a 23% rise in demand from Chinese automakers and lackluster recycling activity. Chinese auto demand surged above 2 M oz, as a reduction in vehicle purchase taxes lifted passenger car sales by more than 15%. However, industrial demand softened, while higher prices triggered heavy profit-taking by ETF investors. With supplies rising 5% on the back of Russian destocking, the palladium market deficit fell to 163,000 oz. World automotive demand is forecast to exceed 8 M oz for the first time, with further growth in world gasoline car production and tighter emissions legislation in China, Europe and North America. There is potential for further profittaking in the investment sector, but the rate of liquidation is predicted to slow following two years of heavy disinvestment. With firm prospects for industrial demand, especially from Chinese bulk chemicals producers, it is predicted that total gross demand will rise by more than 7% to exceed 10 M oz. Although the autocatalyst recycling sector should see some recovery after two years of depressed activity, primary palladium
2
ON
CATALYSTS
supplies are predicted to be lacklustre. As a result, the market deficit is forecast to widen significantly to 792,000 oz.
Original Source: DuPont, 15 May 2017, (Website: http://www2.dupont.com/) ã DuPont 2017.
Molybdenum: Global surplus to fall to 1 M lb. Sojitz forecast a small market surplus of 1 M lb molybdenum. World molybdenum demand is estimated to remain stable at 341 M lbs, as lower crude oil prices lead to weak pipeline demand. Supply is projected to drop by 6% to 342 M lb, due to reduced output by US and Canadian producers. In addition, scale up of the Sierra Gorda project in Chile has been delayed. Output was estimated at 25 M lb in 2016. The Chilean project is owned by Sumitomo Metal Mining (31.5%), KGHM (55%) and Sumitomo (13.5%). Japanese demand for molybdenum was weak and imports of sintered ores dropped by 8% year-on-year to 17,532 tonnes in 1H 2016. Higher imports from Chile were more than offset by lower shipments from Canada and the US following the placement of Endako and Thompson Creek mines on care-and-maintenance. In contrast, Japanese imports of molybdenum oxides and hydroxides increased by 12% year-onyear to 1705 tonnes in 1H 2016, reflecting higher demand in the catalysts industry. Shipments from China doubled to 1327 tonnes and China accounted for nearly 80% of total shipments. Chinese exports of sintered molybdenum ores increased by 42% year-on-year to 1704 tonnes in 1H 2016, as international market prices rose above domestic prices. Shipments of ferro-molybdenum increased by 265% to 651 tonnes over the same period. Four tables show Chinese exports of molybdenum by country of destination in 20122016, Japanese imports of sintered molybdenum ores by country of origin in 2012-2016, forecast world supply of molybdenum by operation in 20132016, and forecast world molybdenum demand by region in 2013-2016. Two bar graphs show the forecast world molybdenum production by operation and molybdenum demand by region in 2013-2016.
Original Source: Roskill, Oct 2016, 7-10 (Website: http://www.roskill.com) ã Roskill 2016.
Synthetic zeolites market worth $16.28 bn by 2022. According to the report “Synthetic Zeolites Market by Type (Zeolite A, Zeolite Y, Zeolite X, Zeolite Zsm-5), Application (Detergents, Catalysts, Adsorbents), and Region - Global Forecast to 2022”, published by MarketsandMarkets, the market was valued at $13.67 bn in 2017 and is projected to reach $16.28 bn by 2022, at a CAGR of 3.6% between 2017 and 2022.
Original Source: MarketsandMarkets, 2017, Found on PR Newswire, 22 Jun 2017, (Website: http://www.prnewswire.com).
2025, according to a new report by Grand View Research Inc.
Original Source: Grand View Research Inc, 2017. Found on PR Newswire, 29 Jun 2017, (Website: http://www.prnewswire.com).
Large-scale U.S. projects in the plastics industry The ACC's “Petrochemical Update” reported that there are nearly 9 M tonnes/y of new ethylene capacity declared as of Dec 2016. These projects are forecast to be completed by 2H 2019. New polyethylene projects with a total of nearly 8 M tonnes/y capacity were also approved. Capital spending in the plastics market is set to increase by 6.4% to $6.5 bn in 2017. In Feb 2017, Taiwanese firm Formosa Petrochemical secured an approval to build a $9.4 bn facility in St James Parish, LA, US, which will start production in 2021. The first phase of the plant will include 1.2 M tonnes/y of ethylene and 600,000 tonnes/y of propylene, while the second phase will include an additional ethylene complex of a similar size and polyethylene and other polyolefins plants. In mid-2016, LyondellBasell disclosed that it intends to construct a high-density polyethylene facility in La Porte, TX, with a capacity of about 500,000 tonnes/y. Initial production is expected by 2019. Exxon Mobil and SABIC are considering a partnership to build a facility in the US Gulf Coast. The joint venture will include a 1.8 M tonnes/y ethylene steam cracker and downstream facilities. PTT Global is considering building a billion-dollar facility in Ohio to manufacture polyethylene and other plastics. The ACC reported that about 50% of the industry's output in the US would be marketed overseas by 2030. Evonik Industries finished the purchase of Air Products’ speciality additive segment for $3.8 bn in early 2017 and now intends to acquire JM Huber's silica gel unit in the US. Evonik Industries also declared in end-2016 its plan to construct a $120 M precipitated silica facility for the tyre industry in South Carolina. Wacker Chemie is set to invest about $150 M for a new fumed silica manufacturing plant with a capacity of about 13,000 tonnes/y in Charleston, SC. The Energy Information Administration (EIA) said that the US crude oil production has increased again since Oct 2016. The EIA anticipates a moderate growth in funding for 2017 and 2018 and an increase from $43.30/barrel to $56.20/barrel in the average annual price in West Texas Intermediate basis by 2018. The EIA also forecast a strong growth in the natural gas condensates production in the medium term. The American Petroleum Institute (API) estimates the average natural gas condensates output in Jan 2017 to be nearly 3.5 M barrels/d. The API said that the total oil refineries capacity in the US stood at nearly 18.5 M barrels/d in 2016, an increase of 400,000 from 2015. The average capacity utilization increased by 0.3 percentage points to 89.7% against in Jan 2016. Market researcher OG Analysis said that the production capacity in the sector is anticipated to increase by 6.3% in 2020. Market researcher Industrial Info Resources said that petroleum refineries in Canada and the US will spend nearly $14.5 bn for projects that will enter the construction phase in 2017.
Original Source: Nachrichten fuer Aussenhandel, 7 Jun 2017, (Website: http:// www.maerkte-weltweit.de) ã MBM Martin Brueckner Medien GmbH 2017.
Molecular biology enzymes, kits, and reagents market worth $26.7 bn by 2025
Automotive sector drives demand for lithium: Roskill
The global molecular biology enzyme, kits and reagents market is expected to reach $26.7 bn by
As reported by Roskill, the global market for lithium-ion (Li-ion) batteries has reached 87 GWh
August 2017