Page 165 - CW E-Magazine (3-6-2025)

News from Abroad

PGM MARKET REPORT
Platinum market supply shortfall to continue in 2025

The platinum market will remain in in persistent deficit between 2012 and ruthenium is forecast to record a deep
deficit in 2025, but palladium will move 2024, is predicted to move into balance deficit this year.
back into balance, according to Johnson this year. Operational restructuring
Matthey’s latest ‘PGM Market Report’. will impact primary supply from South A small increase in primary iridium
Platinum Group Metals (PGMs) are pre- Africa and the USA, but robust growth supply is expected to help balance the
cious metals which include platinum, in Chinese automotive recycling will boost iridium market. Demand is predicted
palladium, rhodium, iridium, osmium, secondary supply, despite weak scrap to be stable, as lower consumption in
and ruthenium. volumes in other regions. Lower pro- chemical applications is balanced by
duction of gasoline vehicles is predicted increased use in crucibles, required for
The platinum market is forecast to to cut automotive palladium demand by growing single crystals for specialised
record a significant supply shortfall for a 5%. The weak outlook for the auto market applications in the electronics and medical
third consecutive year. Primary supply is has also impacted investor sentiment and sectors.
predicted to decline by 3%, with South is curtailing investment demand.
African PGM output constrained by Mr. Rupen Raithatha, Market
operational restructuring, severe weather, The rhodium market is expected to Research Director at Johnson Matthey,
and process plant maintenance. Secondary remain in deficit, with a decline in South commented: “It’s a real challenge to
supply will remain depressed in all African supply balanced by a fall in predict PGM demand in 2025, in view
regions except China, where the govern- automotive consumption. Industrial de- of uncertainty over US import tariffs
ment has renewed a trade-in incentive mand is forecast to rebound this year, as and potential retaliatory actions by
scheme which is encouraging consumers purchasing by the glass industry norma- trade partners. The most obvious
to scrap older vehicles. lises in the wake of rhodium inventory impact will be in the auto sector. We’re
liquidation during 2020-2024, the report already expecting PGM use on vehicles
Industrial platinum consumption stated. Johnson Matthey expects ruthenium to fall by 5% this year, but there’s a
should see modest growth in 2025, in demand to rise by 2% in 2025, with further downside risk if tariffs result in
line with capacity expansions in the strong demand for hard disks for data cuts to vehicle production. Lower car
chemicals, fibreglass, biofuels and centre expansions, and robust consump- sales could also reduce the number of
synthetic fuels sectors, the report said. tion by Chinese chemicals companies. older vehicles being scrapped, cutting
Automotive platinum use is forecast In China, ruthenium catalysts are widely secondary supply.”
to contract by 5%, from a 16-year high used for the production of caprolactam,
in 2024, as battery electric powertrains a feedstock for Nylon 6 resins used in Johnson Matthey’s report also high-
take market share in both the car and engineering plastics. Unless there is a lighted the potential for additional PGM
truck markets. Palladium, which was further drawdown of producer inventory, demand due to higher defence spending.

AkzoNobel to close two more European sites

Dutch paints firm, AkzoNobel, has plans for Montataire in France. The
announced plans to close its manufacturing company aims to focus on anchor sites
sites in Wapenveld (the Netherlands) and that offer greater scale and improved
Machelen (Belgium) and consolidate pro- efficiencies. “Capital allocation will
duction at other locations in the region. increasingly be focused on anchor sites,
which will also enable future innovation.
The intended closures are part of Recent examples include equipment
the company’s multi-year industrial and process upgrades at the company’s
transformation programme aimed at aerospace coatings site in Pamiers,
“improving operations and reducing France, and new research labs
complexity”. They follow last year’s facturing sites located in Europe and in Sassenheim, the Netherlands,” it
announcements regarding three manu- Africa, and the more recent streamlining informed.

Chemical Weekly June 3, 2025 165

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