Report Coverage
This report focuses on the manufacture of basic precious and non-ferrous metals in South Africa, and includes information on the state and size of the sector, production and trade of each major metal, corporate actions and developments and factors influencing them. There are profiles of 30 companies including vertically-integrated platinum group metals producers Anglo American Platinum, Impala Platinum Holdings and Sibanye-Stillwater, copper producer Palabora Copper, gold producers including DRD Gold and Gold Fields and aluminium players such as Hillside Aluminium and Hulamin.
Introduction
Local manufacturers of basic precious and non-ferrous metals are benefiting from rising prices for most metals in response to the recovery of the world economy. South African exports of basic precious and non-ferrous metals amounted to R325.3bn in 2020, compared to R224.3bn in 2019, according to the International Trade Centre’s Trade Map, and Stats SA figures indicate 12,979 people were employed in the manufacturing of these metals in the first six months of 2021, compared to 13,544 in the same period in 2020. Factors such as the impact of the pandemic, high input costs and the inconsistent supply of electricity continue to have a significant impact on the performance of the sector.
Strengths
• Input materials to process are mostly available in South Africa.
• The sector is well-established and able to satisfy domestic demand for precious metals and most non-ferrous metals.
• Wide range of end-users.
Weaknesses
• Energy-intensive production processes make producers vulnerable to high electricity costs and load-shedding.
• No zinc refinery in South Africa.
• Raw material alumina, and a percentage of gold refinery feedstock, have to be imported.
Opportunities
• Growing demand for PGMs related to production of green hydrogen.
• High metals prices currently, mainly due to recovery of world economy.
• Imposition of an export duty on scrap metals.
• Increasing demand for several non-ferrous metals linked to global decarbonisation.
• Introduction of an import tariff of 15% on aluminium rolled products.
Threats
• Impact of COVID-19 on demand for products.
• Inconsistent supply of electricity.
• Increasing costs of electricity, water, raw materials and labour in particular, pose a threat to the sector’s profitability and sustainability.
Outlook
In September 2021, Moody’s Investors Service forecast the prices of most precious metals and non-ferrous metals will stabilise at slightly lower levels in 2022 after most reached record highs in 2021 as a result of supply disruptions and higher demand due to the recovery of the world economy. \r\n\r\nAccording to Australia’s Department of Industry, Science, Energy and Resources, global primary aluminium production is forecast to increase by 1.8% in both 2022 and 2023, to 71,302kt in 2023, mainly due to higher output in China. World primary aluminium consumption is expected to rise by 3.9% in 2022 and 3.6% in 2023, to 75,705kt by 2023, as the metal’s use in vehicles and renewable energy equipment increases. Aluminium’s average spot price on the London Metal Exchange is expected to rise by 7.6% to US$2,565/t in 2022, and by another 1.0% to US$2,590/t in 2023.\r\nS&P Global Market Intelligence forecasts world refined cobalt output will increase by 38.5% from 2021 levels to reach 223kt by 2025 as supply chain disruptions come to an end and output at several production facilities is expanded. Demand for cobalt is expected to increase, largely due to its use in rechargeable batteries. The market is forecast to experience a surplus in 2022 after 2021’s deficit, causing prices to decrease.\r\n\r\nThe Department of Industry, Science, Energy and Resources expects global refined copper production to increase by 4.1% in 2022 and 3.1% in 2023, to 27,041kt in 2023, mainly due to higher output in China and the Democratic Republic of Congo. World refined copper consumption is expected to rise by 2.0% in 2022 and 2.9% in 2023, to 27,278kt by 2023, as the metal’s use in electric vehicles and renewable energy equipment is forecast to increase. The London Metal Exchange’s average spot copper price is expected to decrease by 3.0% to US$8,846/t in 2022, and by another 2.2% to US$8,650/t in 2023.\r\n\r\nGlobal gold supply is expected to increase by 1.0% in 2022 and by 1.1% in 2023, to 4,942t in 2023, mainly due to higher mine production. World gold demand is expected to rise by 4.1% in 2022 and by 7.4% in 2023, to 4,535t by 2023, as demand for gold jewellery grows. The London Bullion Market Association average gold price is expected to decrease by 4.7% to US$1,701/oz in 2022, and by another 3.9% to US$1,634/oz in 2023.\r\n\r\nThe International Lead and Zinc Study Group expects world refined lead supply will rise by 3.6% in 2021, to 12,080kt, mainly due to higher mine production. Global refined lead demand is expected to increase by 4.4% to 11,890kt in 2021. The World Bank forecasts London Metal Exchange average lead prices will decrease by 4.5% to US$2,100/t in 2022, and by another 4.8% to US$2,000/t in 2023 as demand for electric vehicles grows at the expense of internal combustion engine vehicles.\r\n\r\nWorld primary refined nickel supply is expected to increase by 7.7% in 2022 and by 9.3% in 2023, to reach 3,074kt in 2023, mainly due to higher production in Indonesia. Global primary refined nickel consumption is expected to rise by 4.7% in 2022 and by 6.1% in 2023, to 3,022kt by 2023, as demand for electric vehicle batteries grows. The London Metal Exchange average nickel price is expected to decrease by 7.5% to US$16,690/t in 2022, and by another 3.1% to US$16,169/t in 2023.\r\n\r\nAnglo American Platinum expects platinum will be in oversupply in 2021, but will gradually move to a deficit of 10t in 2025, mainly due to it replacing palladium in petrol-engine autocatalysts. In the longer term, demand for platinum will increase due to its use in vehicle fuel cells and proton exchange membrane electrolysis for the production of green hydrogen. Palladium is forecast to continue to be in deficit in 2021, mainly due to higher autocatalyst demand, but the deficit is expected to gradually shrink to 11t in 2025 as substitution by platinum increases. Rhodium is expected to record a small surplus in 2021, but will move to a deficit in 2022 that will grow to 1.3t in 2025 as demand for autocatalysts improves. Supply from autocatalyst recycling is forecast to rise over the medium term, but will largely affect palladium supply.\r\n\r\nAccording to the Silver Institute, global silver supply is expected to increase by 8.2%, to 32,854t in 2021, mainly due to higher mine production. Mine production is expected to grow over the medium term, while recycling is forecast to decrease. World silver demand is expected to rise by 15.3% in 2021, to 32,130t, mainly due to higher investment demand. Demand is expected to grow over the medium term. The London Bullion Market Association average silver price is expected to increase by 32.8% to US$27.30/oz in 2021.\r\n\r\nAccording to the World Bank, global supply of refined tin is expected to be insufficient to satisfy rapidly-growing demand from electronics and renewable energy equipment. London Metal Exchange average tin prices are forecast to decrease by 0.8% to US$31,000/t in 2022 after record high prices in 2021.\r\n\r\nWorld refined zinc supply is expected to increase by 0.8% in 2022 and by 1.0% in 2023, to reach 14,156kt in 2023, mainly due to higher production from several large producers. Global refined zinc consumption is forecast to rise by 1.5% in 2022 and by 0.9% in 2023, to 14,195kt in 2023. The London Metal Exchange average zinc spot price is expected to decrease by 12.0% to US$2,581/t in 2022, and by another 5.0% to US$2,450/t in 2023 after record high prices in 2021.
Full Report
R 1 900.00(ZAR) estimated $105.06 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.54 (USD)*
Industry Organogram
R 450.00(ZAR) estimated $ 24.88 (USD)*
Historical Reports
The Manufacture of Basic Precious and Non-Ferrous Metals Industry in South Africa 2019-05-27
R 1 900.00(ZAR) estimated $105.06 (USD)*
View Report Add to CartThe Manufacture of Basic Precious and Non-Ferrous Metals Industry in South Africa 2016-04-05
R 1 900.00(ZAR) estimated $105.06 (USD)*
View Report Add to CartThe Manufacture of Basic Precious and Non-Ferrous Metals Industry in South Africa 2014-04-22
R 1 900.00(ZAR) estimated $105.06 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 2 |
2.2. | Geographic Position | 10 |
2.3. | Size of the Industry | 12 |
2.4. | Key Success Factors and Pain Points | 19 |
3. | LOCAL | 19 |
3.1. | Key Trends | 19 |
3.2. | Notable Players | 23 |
3.3. | Trade | 26 |
3.4. | Corporate Actions | 38 |
3.5. | Regulations | 38 |
3.6. | Enterprise Development and Social Economic Development | 40 |
4. | AFRICA | 41 |
5. | INTERNATIONAL | 58 |
6. | INFLUENCING FACTORS | 89 |
6.1. | COVID-19 | 89 |
6.2. | Economic Environment | 90 |
6.3. | Input Costs | 91 |
6.4. | Inconsistent Supply and Increasing Cost of Electricity | 94 |
6.5. | Technology, Research and Development (R&D) and Innovation | 94 |
6.6. | Government Support | 95 |
6.7. | Environmental Issues | 95 |
6.8. | Labour | 96 |
7. | COMPETITIVE ENVIRONMENT | 98 |
7.1. | Competition | 98 |
7.2. | Ownership Structure of the Industry | 100 |
7.3. | Barriers to Entry | 101 |
8. | SWOT ANALYSIS | 101 |
9. | OUTLOOK | 102 |
10. | INDUSTRY ASSOCIATIONS | 104 |
11. | REFERENCES | 104 |
11.1. | Publications | 104 |
11.2. | Websites | 105 |
APPENDICES | 107 | |
Appendix 1 - Summary of Notable Players | 107 | |
COMPANY PROFILES | 113 | |
Afrisol (Pty) Ltd | 113 | |
Anglo American Platinum Ltd | 115 | |
Cape Precious Metals (Pty) Ltd | 119 | |
Copalcor (Pty) Ltd | 121 | |
DRDGold Ltd | 124 | |
EVRAZ Highveld Steel and Vanadium Ltd | 129 | |
Finegold Laboratory Services CC | 131 | |
Gauteng Refinery (Pty) Ltd | 133 | |
Gold Fields Ltd | 135 | |
Harmony Gold Mining Company Ltd | 140 | |
Heraeus South Africa (Pty) Ltd | 147 | |
Hillside Aluminium (Pty) Ltd | 149 | |
Hulamin Ltd | 151 | |
Impala Platinum Holdings Ltd | 155 | |
Insimbi Industrial Holdings Ltd | 160 | |
Manganese Metal Company (Pty) Ltd | 165 | |
Metal Concentrators SA (Pty) Ltd | 167 | |
NiMag (Pty) Ltd | 169 | |
Non-Ferrous Metal Works (S A) (Pty) Ltd | 171 | |
Northam Platinum Holdings Ltd | 174 | |
Palabora Copper (Pty) Ltd | 177 | |
Pan African Resources PLC | 181 | |
Rand Refinery (Pty) Ltd | 185 | |
SA Metal Group (Pty) Ltd | 188 | |
SA Precious Metals (Pty) Ltd | 191 | |
Sibanye Stillwater Ltd | 193 | |
SMT Afritech (Pty) Ltd | 199 | |
Village Main Reef (Pty) Ltd | 201 | |
Wispeco (Pty) Ltd | 204 | |
Zimco Group (Pty) Ltd | 206 |