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PGM Recycling Market Expected To Be Worth $9 Billion By 2018 – Research Firm

By Kitco News
Monday March 31, 2014 1:45 PM

(Kitco News) - The market for recycled platinum group metals is expected to see significant growth over the next four years, according to a study from a private research firm.

The report, Global Market for Platinum, Palladium and Other Platinum Group Metals Recycling - A Global Technology, Industry and Market Analysis, was compiled by Innovative Research and Products. The firm said that they are expecting the global recycling market for PGMs to expand 8.2% by 2018 and have a market value of $9 billion.

“The platinum group metals recycling industry has sustained growth in the last decade and is likely to continue this growth into the next decade because of the increasing value of PGMs,” IRAP said in a press release.

July platinum future prices have been extremely volatile since the start of the year. Prices started January at $1,391.0 an ounce and by March 6 they closed at the highest point of the year at of $1,487.80 an ounce; however, prices have slid significantly lower since then. As of 1:28 p.m. EDT, July platinum was trading at $1,416.80 an ounce.

June palladium futures have fared much better than platinum as they started the year at $720.25 and has managed to hold on its gains. As of 1:28 p.m., June palladium was trading at $777.00 an ounce.

In the report, the research firm said that a growing global automotive market, especially in developing nations like Brazil, India and China, and strong jewelry demand will contribute the expanding appetite for the precious metals.

However, the firm also said that the development of new technologies and proliferation of fuel cells will also add to the demand the marketplace.

Breaking down the recycling market by geographical locations, the firms said that Asia has the biggest growth potential.

“Asia is expected to exhibit growth that exceeds some of the world’s most vibrant markets in the Americas and Europe by expanding at a rate of approximately 9.2% annually,” the firm said.

The European PGM recycling market is expected to grow by 7.7% and in the Americas, the market is expected to grow by 7.5%. However, the firm pointed out that the Americas could end up being the biggest source for recycled PGMs.

The PGM sector has garnered a lot of attention in the last few weeks as the industry tries to cope with rapidly declining supplies as a result of a mining strike in South Africa and tensions between Western nations and Russia.

On Friday, Chris Griffith, chief administrative officer for Anglo American Platinum, the world’s largest platinum producer, said the company’s stockpile of the precious metal has been cut in half to about 215,000 ounce since the work action started more than 10 weeks ago.

By Neils Christensen of Kitco News; nchristensen@kitco.com



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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