Sodium Cyanide

Global Sodium Cyanide Market Outlook

• The global sodium cyanide capacity stood at 911 Thousand MT during 2019. 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

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 was 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 as 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 a positive growth rate and high volume.
• Demand from small-volume applications including, chemical intermediates and performance materials, is expected to remain on a higher note.
• Demand growth for sodium cyanide from electroplating is expected to slow down, owing to the increasing awareness about its ill effects.

Downstream Demand Outlook

Mining Industry 

• The mining industry will remain a key demand-driver for sodium cyanide across the globe.
• Given the volume and better pricing received by sodium cyanide producers from the mining industry, industrial buyers hold maximum negotiation potential.

Electroplating 

• Sodium cyanide is been widely used by electroplating companies across the world for its better blending properties.
• Sodium cyanide demand is expected to decrease, as it is being increasingly replaced by other product-specific substitutes.
• 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 have increased the production cost of sodium cyanide.
• Regulations have impacted both the production and distribution of the material.
• A recent example of Cyanco’s railroad building issue can be stated for an increase in regulations and awareness among the public about having a sodium cyanide supply chain in their vicinity.
• The recent COVID-19 pandemic has negatively affected the global sodium cyanide market. This is in line with the negative effect of the pandemic on various industries. However, the only sector where the use of sodium cyanide continues to be positive is the pharmaceuticals sector.

Market Overview

The global size of the sodium cyanide industry is expected to expand steadily through 2022, primarily driven by demand from the mining sector. The market growth, in terms of volume, is higher compared to that of the growth, in terms of dollar value, mainly owing to prevailing excess supply. The majority of sodium cyanide imports to Africa come from South Korea and Australia, which are basically AGA trade routes.  

The production cost of sodium cyanide is lower in the US and Australia compared to other regions, given the presence of low-cost raw materials such as hydrogen cyanide. Utility cost accounts for about 9-16% of the total sodium cyanide cost production and labor cost accounts for about 3-7%. Further, the global sodium cyanide market is highly consolidated with key four players holding nearly 50% of the capacity share.

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.