PGM Recycling Report

SFA (Oxford) has, over a number of years, been contracted to work discreetly with numerous links throughout the PGM recycling value chain, including due diligence on scrap processing facilities, filling underutilised capacity, sourcing feed material, understanding the economics of recycling, evaluating opportunities in emerging markets or providing a full business case for a new entrant. This experience has provided SFA (Oxford) with a comprehensive understanding of the recycling business. With an extensive database on PGM end-use and sophisticated algebra, we have quantified recycling volumes in autocatalyst, jewellery and electronic applications. This includes detail on processing infrastructure capacity limits and economics

In its review of PGM recycling potential, SFA (Oxford) considers the recycling business and its drivers to quantify scrap volumes and PGM flows. The report includes detailed commentary and analysis on the sources of scrap, competition, market growth rates and legislation impacting on this area of PGM supply.

Who Should Read This Report

End-users and fabricators concerned about the future security of PGM supply. 

Mining companies wanting in-depth analysis on future market fundamentals, particularly the changing cocktail of supply, and an evaluation of the processing opportunities offered by a growing recycling sector. 

Investors with exposure to the PGM sector that need to fully quantify the risks to market fundamentals and pricing from recycling volume growth.

Recyclers and refiners evaluating expansion opportunities and sourcing feed materials.

The Report

SFA (Oxford) has tracked the development of PGM usage and subsequent PGM scrap generation in the autocatalyst, jewellery and electrical & electronic sectors. This supply-side analysis for autocatalysts and these assumptions are underpinned by data on vehicle production, sales, parc, trade, age distribution and collector locations, as well as an understanding of historical, regional catalyst introduction and associated changes in loadings, which has enabled us to model and define, by region, the existing and potential future volumes of PGMs and associated ceramic components available for recovery and recycling.

In modelling PGM volumes, SFA (Oxford) also accounts for the price factors and elasticities affecting profitability, including price structures and metal returns, pricing conditions, hedging, and the sensitivity and volatility of the metal price, in order to provide a risk assessment of volume growth. 

The model also takes into consideration the effects of price elasticity, currency and price volatility on recycling volumes, particularly for jewellery, and includes analysis of the drivers of price appreciation such as mine cost inflation. 

Finally, SFA (Oxford)’s long-term assessment takes account of the potential ratio and volume of metals returning to market against processing margins, technology, capacity and utilisation rates. The emerging business case to recycle catalysts in Chinese/Indian markets (potential growth areas) is also considered. 

Your Copy

For more information on our report on PGM recycling potential, or to obtain a copy of the report, please get in touch with us.