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SAN FRANCISCO , June 3, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Precious Metal Catalysts - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
FACTS AT A GLANCE What's New for 2022?
Edition: 10; Released: March 2022 Executive Pool: 3214 Companies: 70 - Players covered include Alfa Aesar; ALS Limited; American Elements; Arora Matthey Limited; BASF SE; Catalytic Products International; Chimet S.p.A.; Clariant International Ltd (Switzerland ); Haldor Topsoe A/S; Heraeus Holding GmbH; Johnson Matthey Plc; N.E. Chemcat Corporation; Sabin Metal Corporation; Shaanxi Kai Da Chemical Engineering Co., Ltd.; Souvenier Chemicals; Stanford Advanced Materials; Takasago International Corporation; Umicore Galvanotechnik GmbH; Vineeth Precious Catalysts Pvt. Ltd. and Others. Coverage: All major geographies and key segments Segments: Type (Platinum, Palladium, Ruthenium, Rhodium, Iridium, Other Types); End-Use (Automobile, Pharmaceutical, Refinery, Other End-Uses) Geographies: World; USA ; Canada ; Japan ; China ; Europe ; France ; Germany ; Italy ; UK; Spain ; Russia ; Rest of Europe ; Asia-Pacific ; Australia ; India ; South Korea ; Rest of Asia-Pacific ; Latin America ; Argentina ; Brazil ; Mexico ; Rest of Latin America ; Middle East ; Africa .
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Amid the COVID-19 crisis, the global market for Precious Metal Catalysts estimated at US$16.2 Billion in the year 2022, is projected to reach a revised size of US$21.2 Billion by 2026, growing at a CAGR of 6.7% over the analysis period. Platinum, one of the segments analyzed in the report, is projected to grow at a 7.8% CAGR, while growth in the Palladium segment is readjusted to a revised 7.1% CAGR. Similar to several other industries that have been adversely impacted by the COVID-19 pandemic the market for precious metal catalysts also suffered during the past one year when the petrochemical and automotive industries, the two major end-user industries for the catalysts, slumped. Restrictions on transportation and lockdown regulations greatly impacted the automotive market. Sales of passenger vehicles slowed down drastically which led to a major decrease in demand for automotive catalysts that find use in vehicle exhaust streams. However, the global pharmaceutical industry has been one of the few industries to have returned to normalcy quickly. Precious metal catalysts demand from the pharma industry is anticipated to increase providing the overall market some respite.
The coronavirus pandemic triggered mines closure across the world during the initial months of 2020 which led to major disruptions in PGM (platinum group metals) containing scrap collection. Primary supplies worldwide decreased by around 20% also due to outages at the converter plant of Anglo American Platinum. Demand for auto catalysts declined by around 22% as European diesel car production witnessed a steep fall. However, while auto and jewelry demand plunged greatly, industrial demand for platinum showed some resilience. Construction of new glass and petrochemical companies in China proceeded as per schedule. The low prices because of demand slump from other end-user industries also triggered some amount of advance buying. US and European lockdowns resulted in demand decrease for platinum sponge used mostly by Western automotive and industrial buyers. However, demand for platinum ingot used in Asia continued to be high.
The pandemic intensified the weakness already existing in major diesel car markets of Europe . Producers of heavy duty trucks cut down production volumes resulting in auto sector demand for platinum contracting by 20% in 2020, the lowest since the financial crisis. Europe is the largest user of platinum for auto catalysts and the region witnessed demand drop significantly due to lockdowns and the resultant collapse of car sales. With car plants shut down temporarily, car production in Europe contracted by around 40% during 2020 first half, compared to same period the previous year. The sector however, started recovering gradually by the mid of the year. Moreover, impact was higher on the diesel segment than on gasoline segment. Impact upon platinum demand was aggravated also by the modest decline in average PGM content in Europe's diesel after treatment systems. Across Europe , platinum containing DPFs (Diesel Particulate Filters) are being substituted by SCRF non-pgm bricks which perform particulate filtration and also NOx reduction. However, Europe mandates that all the diesel vehicles in Europe have at least a single PGM containing catalyst brick.
The war of Russia on Ukraine is causing a spike in the cost of metals that are employed in the production of cars. While high quality nickel finds application in EV batteries, palladium is used in catalytic converters, and aluminum is employed in the vehicle bodywork. Increase in the cost of these metals is expected to be passed on to the final customer. Certain suppliers of auto components and shippers are moving away from Russian products and this is further burdening car producers who are also under pressure due to increased energy prices and chip shortages. Short supply of chips has caused a reduction in car inventories and a rise in prices. With regards to metals, companies in Russia are the key suppliers to Germany . In the year 2020, they contributed to 18%, over 30%, 41%, and 44% of Germany's palladium, iron, titanium, and nickel imports respectively. The prices of palladium have been increasing in the last few years, with Russia holding nearly 40% share of the world market. There are no alternatives to platinum and palladium for use in catalytic converters and they are vital to the production of cars.
Traditionally, palladium has been widely used by auto producers in catalytic converters which limit pollution in gasoline-powered cars. But with the cost of palladium soaring and rising supply concerns due to Russia -Ukraine crisis, demand for platinum is expected to strongly increase as the metal is likely to be used as a substitute for palladium by automakers in autocatalysts, given its relatively lower cost. Platinum can substitute nearly 25% of palladium in diesel catalytic converters and in certain applications even 50% substitution is possible. In 2022, palladium to the tune of 340,000 ounces is expected to be replaced. Palladium has been in short supply even before the war situation. Also theft of catalytic converters is now likely to increase due to the on-going Russia -Ukraine war. The precious metals used in catalytic converters generally origin from Russia . The shortage of these metals can impact their value and the catalytic converters' value on the street. Catalytic converters thefts have been on rise as they are considered valuable due to the rare metals contained in them such as palladium. Nearly 40% of the palladium mined globally is from Russia . Sanctions are said to spur greater demand, even in the illegal markets. Till the time alternate sources of such metals emerge, the value and theft of catalytic converters are expected to increase. Increasingly, companies in the West are shying away from palladium exports from Russia , against the backdrop of the war. The global sanctions on Russia pose the risk of interrupting palladium supply from the country, and this has caused a rise in prices of the metal to a record high. While the palladium substitution trend is gaining pace, Russia is the second leading producer of platinum globally and this can impact its supply.
Presence of major players and also stringent emission regulations make Europe the largest regional market for precious metal catalysts. Europe as a whole represents one of the largest markets as well as one of the leading manufacturers of commercial vehicles in the world. In addition, Europe is one of the leading regions in terms of ensuring cleaner vehicles. Having some of the most stringent standards for vehicle emissions in the world, the region presents ample growth opportunities for the catalysts market. However, over the coming years, Asia-Pacific would also emerge as a promising market. Strong demand for the catalysts is anticipated in China , which is the global hub of chemicals processing currently. The nation accounts for a large share of chemicals produced worldwide. Increasing global demand for different types of chemicals produced in China is expected to create an equally strong demand for precious metal catalysts here. The increased loadings of precious metals in autocatalysts for heavy duty diesel engines is also set to firm up demand in the near future owing to the impending roll out of new HDD norms from middle of the year 2021. Resumption of light vehicle demand is however slated to be less stupendous owing to the disparities in implementation of emission norms across the country with previous catalyst fitment tagged to the localized roll outs of norms which did not necessitate palladium and rhodium loading. As a result, auto manufacturers have shifted focus to improving engine performance to reduce emissions thus lowering requirement for the pricey palladium rhodium loaded catalysts. On the other hand, vehicles that comply with China 6a catalysts are set to take advantage of the disparity in timelines of legislative enforcement. However, heavy duty vehicles are primed to spike demand for the sector on account of impending implementation of compulsory country-wide roll out of China VI standards for HDD vehicles. Stringent norms require shift to high performing diesel particulate filters (DPFs) and diesel oxidation catalysts (DOC) with palladium and rhodium. More
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