Global Sodium Cyanide Market Outlook

  • Global sodium cyanide capacity stood at 1,246 Thousand MT during 2017. The market is oversupplied in major markets, like the US, Europe, and APAC 
  • Capacity expansion is expected to increase in North America; however, in other regions, no such capacity expansions are expected

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Global Capacity–Demand Analysis

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 456 Thousand MT of excess capacity in 2017
  • About 55 percent of the new capacity expansion occurred in the US, while 42 percent occurred in APAC during 2014–2015 

Demand 

  • The precious metal mining industry is expected to grow at a CAGR of 3–4 percent in Africa and 2–3 percent in the APAC and Oceania regions, facilitating a similar growth in sodium cyanide consumption
  • Demand from these regions will serve the key drivers for the global sodium cyanide trade 
  • The US mining industry is expected to increase marginally in the coming years, followed by favorable policy changes

Global Demand by Application

  • Mining industry buyers will continue to hold maximum bargaining potential, owing to positive growth rate and high volume 
  • Demand from small-volume applications, like chemical intermediates and performance materials, is expected to remain on a higher note 
  • Growth in demand for sodium cyanide from electroplating is expected to slowdown, owing to the increasing awareness about its ill effects

Downstream Demand Outlook

Mining Industry 

  • The industry will remain as a key demand driver for sodium cyanide across the globe 
  • 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 is been widely used by electroplating companies across the world for its better blending properties 
  • Sodium cyanide demqnd is expected to decrease, as it is being increasingly replaced by other product-specific subsititutes 
  • There is increasing awareness about the harmful after-effects of sodium cyanide plating. So, demand from this industry is expected to be less 
  • Demand from other industries, like research, chemical intermediates, and performance additives, is expected to remain high

Industry Drivers and Constraints

Drivers

Mining Activity and Investment Markets

  • Increase in mining activity would mean an increase in 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

Environmental Regulations

  • Stringent environmental regulations had increased the production cost of sodium cyanide
  • Regulations have impacted both production and distribution of the material
  • Recent example of Cyanco’ s rail road building issue can be stated for increase in regulations and awareness among the public about having a sodium cyanide supply chain in their vicinity