Palladium demand in autocatalyst
applications rose 4% to 7.9 million oz (245.1 mt) last year, slightly faster than new vehicle demand and to a new record high.
The company's main activities include the manufacture of autocatalysts
, platinum process catalysts and speciality chemicals and the refining, fabrication and marketing of platinum group metals.
Platinum Supply & Demand (2011-2013, '000 oz) Supply 2011 2012 2013 South Africa 4,860 4,090 4,120 Russia 835 800 780 North America 350 310 315 Zimbabwe 340 340 400 Others 100 110 125 Total Supply 6,485 5,650 5,740 Demand Autocatalysts
3,185 3,190 3,125 Jewelry 2,475 2,780 2,740 Industrial 1,975 1,605 1,790 Investment 460 455 765 Recycling -2,060 -2,040 -2,075 Total Demand 6,035 5,990 6,345 Stocks 450 -340 -605 Source: Johnson Matthey's Platinum 2013 Interim Review
This reversal of trend was almost completely attributable to supply side factors with refined metal outturn from the three major sources; mining, autocatalyst
recycling and the recycling of old jewellery scrap contracting sharply last year, by 10 per cent, nine per cent and 19 per cent respectively.
demand is projected at record highs of 3.86m oz, up 8.4% on 2004.
Johnson is thought likely to say that it has benefited from robust autocatalyst
demand and high precious metal prices.
The majority of North American vehicles continue to be equipped with platinum-based autocatalyst
systems, and platinum demand wasn't to change much in 1997.
The world's autocatalyst
demand is shown to have been 1.88m ounces in 1996, rising by 2.4% in 1997 to over 1.92m ounces, reflecting higher production in the Asia Pacific region.
business in Asia benefited from strong growth in the Chinese market where sales of cars and vans rose by 37 per cent in 2003.
The company said global vehicle sales had grown by just one per cent, but the autocatalyst
market grew by around six per cent in the year, with tighter air pollution regulations in major markets like the US and Japan and moves by other countries to clamp down on noxious gases spewed out by vehicles.
The catalysts and chemicals division saw turnover jump by 69 per cent to pounds 638 million and operating profit up 18 per cent at pounds 46.2 million, helped by stronger paladium prices and continued growth in autocatalyst
Gold regained its premium over platinum, with the autocatalyst
metal struggling for traction as demand fears grew.