Abstract
US metal powder demand to reach $2.3 billion in 2010
Metal powder demand in the US will approach $2.3 billion in 2010. The improved
outlook for the computer and electronic components markets will be
instrumental in driving metal powder value growth, since these markets use the
vast majority of the most expensive metal powders, namely silver, gold,
tantalum and the platinum group metals. In addition, the continuing economic
rebound will support demand for a number of less expensive, high volume, metal
powders used to manufacture industrial and automotive components. Among the
products that will benefit from this rebound are iron, steel and copper-based
powders. Preventing even stronger value growth will be an expected decline in
prices for many types of metal powders as metal prices fall from mid-decade
highs.
Volume gains to outpace market value increases
Volume gains will outpace value increase, with volume growth supported by new
applications for many types of metal powders, including iron and steel,
stainless steel, aluminum and tungsten metal powders. In some instances --
such as the spread of powdered metal parts in motor vehicles -- these
applications represent an ongoing evolution. However, completely new
applications and revolutionary products such as nanoscale metal powders will
also support growth in demand.
Iron and steel, aluminum, zinc and copper- based powders represent the vast
majority of total metal powder volume demand, with iron and steel powders
alone accounting more than 60 percent of the total in 2005. However, iron and
steel powders represent only about 25 percent of total value demand, due to
their low price compared to most other metal powders. In addition to the large
volume metals, both precious metal and tungsten powders represent significant
portions of total metal powder value demand. Precious metal powders are
primarily used in electronic applications, while tungsten metal powder is
largely used to produce tungsten carbide for abrasives.
Demand for iron and steel powders is heavily concentrated in parts production,
particularly for motor vehicles. The two major markets for aluminum powders
and flakes are chemicals -- where they are used as catalysts, reducing agents
and fillers -- and paints and coatings, for use as pigments. Much of the
demand for the most expensive metal powders -- tantalum and precious metals --
comes from the computer, electronic components, and electrical and electronic
equipment markets, for products such as film pastes and capacitor anodes.
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