Sodium Cyanide

Global Sodium Cyanide Market Outlook

MARKET OVERVIEW

Global Capacity: 953 Thousand MT (2022-F)

Global Demand: 678 Thousand MT (2022-F)

Global Demand CAGR: 3-4 percent (2022–2026)

• The global sodium cyanide capacity stood at 953 Thousand MT during 2023. There is sufficient installed capacity and supply in major markets, like the US, Europe, and APAC

• No major capacity expansions are expected until 2026 across all the regions

Global Capacity–Demand Analysis : Sodium Cyanide

Sodium cyanide demand from the gold mining industry constitutes only for approx. 7–8 percent of the total cyanide demand. Sodium cyanide is a low-volume buying downstream segment for both the caustic soda and ammonia markets.

Capacity

• The global sodium cyanide market is oversupplied with 133 Thousand MT of excess capacity in 2023

• The capacity-demand is expected to contract towards 2026, as no new capacity additions have been planned across the globe

Demand

• High demand for precious metals, especially in regions, like Africa, APAC, and Oceania, is driving the growth of metal mining industries, further increasing the demand for the sodium cyanide market

• Overall, gold mining is expected to be the major demand driver, with nearly 85 percent market share in 2021 and the trend to continue in the upcoming years

Global Demand by Application : Sodium Cyanide

• Demand share of Mining industry buyers has further increased during 2021, amidst the rise in demand for precious metals post the COVID pandemic

• Demand from small-volume applications, like chemical intermediates and performance materials, is expected to be steady

• Growth in demand for sodium cyanide from electroplating is expected to slowdown, owing to the increasing awareness about its ill effects. Overall, buying trends to drop in 2023

Downstream Demand Outlook

Mining Industry

• Increasing mining activities are demand drivers for sodium cyanide. More than 90 percent of the global gold-producing companies utilize sodium cyanide for the extraction of gold

• Given the volume and better pricing recieved by sodium cyanide producers from the mining industry, buyers from the sector will hold the maximum negotitation potential

Electroplating

• Sodium cyanide for its better blending properties is being widely used in electroplating applications

• The demand for sodium cyanide is expected to decrease, as it is being increasingly replaced by other product-specific subsititutes

• Growth in demand for sodium cyanide from electroplating is expected to comedown, prevailing its increasing awareness about its ill effects

• Demand from other industries, like research, chemical intermediates, and performance additives, is expected to remain high

Industry Drivers and Constraints : Sodium Cyanide

Drivers

Mining Activity and Investment Markets

• Growing mining activities across the globe contribute to the rising demand for sodium cyanide

• Any unfavorable movement in the cash market would increase the investment in gold and other precious metals. This, in turn, would increase the demand for sodium cyanide by manifold

Constraints

Environmental Regulations

• Stringent environmental regulations had increased the production cost of sodium cyanide. Regulations have impacted both production and distribution of the material

Fed Interest Rate fluctuation

• Increase of Federal interest rate is expected to have negative impact on the overall gold demand in 2023. Due to higher interest rates, some of the buyers have invested in the US dollars than gold which impacted the sodium cyanide demand during 2023.

Sodium Cyanide Cost Structure Analysis

• Raw material, especially hydrogen cyanide, is the major price driver of sodium cyanide. The production cost of sodium cyanide is lower in the US and Australia when compared to other regions, due to low raw material cost.

• Raw material cost accounts for 65–68 percent of the total production cost, out of which, hydrogen cyanide accounts for 48 percent and 43 percent in Australia and the US, respectively

• Utility cost contributes to about 9–16 percent of the total production cost because of its energy-intensive process

• Indirect cost contributes to about 15–21 percent of the total production cost

• Labor cost contributes to about 3–7 percent of the total production cost

Why You Should Buy This Report

The report gives the global and regional market outlook, supply-demand trend analysis, and Porter’s five force report of areas like North America, Europe, and Asia. It lists out the sodium cyanide industry drivers and constraints, as well as about sodium cyanide price, and provides the cost structure analysis of sodium cyanide. It gives supplier profile and SWOT analysis of key global players like Anhui Shuguang Chemical Group, Cyanco, Hebei Chengxin, and more.