#EUA – PGM and the LPPM

** This post will be added to as more of the market is found.

So where do all the millions of ounces that get mined every year end up? Long story short, the automotive sector dominates. But who are the main players, the secondary traders and refiners. Whilst I believe a miner is most likely to buy Eurasia Mining, it is almost a certainty the buyer will be involved in the sector already. So consider this a definitive list of options!

A good place to start is The London Platinum & Palladium Market – with

32 Platinum Refiners

28 Palladium Refiners

15 Full Members

42 Associate Members

45 Affiliates

Now there is some crossover between lists, so the following is a brief summary of who is who.

GermanyC Hafner GmbHGood Delivery
Heraeus Metals Germany GmbHFull
Saxonia Edelmetalle Good Delivery
UKJohnson Matthey Good Delivery
Anglo American PlatinumAssociate
IndiaHindustan Platinum Pvt. Ltd Good Delivery
ItalyChimet SpA Good Delivery
JapanAida Chemical Industries Good Delivery
Asaha Pretec Corp Good Delivery
Furuya Metal Co Good Delivery
Hanwa Company Limited Affiliate
Honda Trading Affiliate
Ishifuku Metal Industry Good Delivery
Materials Eco-Refining Co Good Delivery
Matsuda Sangyo Co Good Delivery
Mitsubishi MaterialsAffiliate
Nihon Material Co Good Delivery
Sumitomo Corporation Associate
Tanaka Kikinzoku Kogyo K.K.Full
Tokuriki Honten Co Good Delivery
Toyota Tsusho Affiliate
KoreaHeesung PM Tech Corp Good Delivery
RussiaJoint Stock Company (Gulidov Krasnoyarsk) Good Delivery
Norilsk Nickelnon member
Prioksky Plant Good Delivery
South AfricaHeraeus South Africa (Pty) Ltd Good Delivery
Impala Platinum Ltd Good Delivery
Rustenburg Platinum Mines Ltd Good Delivery
Sylvania Platinum Limited Affiliate
SwitzerlandArgor-Heraeus SA Good Delivery
Metalor Technologies SAFull
Valcambi SAFull
TaiwanSolar Applied Materials Technology Corp Good Delivery
USABASF (Catalysts Division)Full
Johnson Matthey IncFull
Sabin Metal CorporationAssociate
Heraeus Precious Metals North America LLC Good Delivery
Market MakersGoldman SachsFull
ICBC Standard Bank PLCFull
JP Morgan Chase BankFull
Standard Chartered BankFull
Bank of Nova ScotiaFull
Toronto-Dominion BankFull
need researchAlliance Industries LtdAssociate
Amalgamated Metal Trading Limited Associate
Baird & Co LtdAssociate
Cookson Precious MetalsAssociate
CRI / Criterion Catalyst Company LtdAssociate
Metals Trade Overseas AGAssociate
Mitsubishi Corporation International (Europe) Plc Associate
Mitsui & Co Ltd Associate
Natixis Associate
SCMI LtdAssociate
Sharps PixleyAssociate
Triland Metals LtdAssociate
Umicore AG & Co KGAssociate
UOP CH SarlAssociate
UOP LtdAssociate
Avon Speciality MetalsAffiliate
Colonial Metals Affiliate
Comdaq MetalsAffiliate
DD&Co Limited
Dillon Gage Metals
Eiger Trading Advisors Ltd.
G4S Cash Solutions UK Ltd.
G4S International Logistics (UK) Limited
Gemini Industries Inc.
Gerrards (Precious Metals) Ltd.
GFI Securities Limited
ICAP Securities Limited
Inspectorate International Ltd.
Ivanhoe Mines SA
Loomis International (UK) Ltd
Malca-Amit Commodities Ltd.
Mastermelt Ltd.
Metals Focus Limited
Ospraie Management, LLC
Platinum Group Metals Ltd.
Richmond Commodities Limited
Sojitz Corporation
Techemet Metal Trading LLC
Tharisa Plc
Tokuriki Honten Co. Ltd
Tullett Prebon (Europe) Limited
Western Digital Corporation
Wogen Resources Ltd.
World Platinum Investment Council
Group RevenueCompanyFinancial Info
$69.7bnBASFFrom 2020 Annual Report – EUR 59.1bn. German giant of industry, PGM in Catalysts division with American HQ
$60.6bnToyota Tsusho6.69 trillion yen (2019 annual report). This is the trading division of Toyota.
$48.1bnSumitomoFrom 2019 Annual Reports (2020 due in May). A true giant on the global stage. $12.5bn from metal products and $10bn from mineral resources.
$32.3bnAnglo AmericanFrom 2020 Annual Reports. $8.4bn from PGM mining
$26.4bnHeraeusIn the 2019 financial year, Heraeus generated revenues of €22.4 billion with approximately 14,900 employees in 40 countries. Heraeus is now one of the top 10 family-owned companies in Germany and holds a leading position in its global markets.
$15.5bnNorilsk Nickel2020 Consolidated revenue increased 15% y-o-y to $15.5bn owing to higher prices of palladium and rhodium as well as the scheduled ramp-up of Bystrinsky project; EBITDA decreased 3% y-o-y to $7.7bn.
Largest Palladium miner in world and neighbour to Eurasia site at Monchetundra.
$15.4bnHanwa1.7 trillion Yen (2021 estimates) Hanwa is a trading company with operations spanning non-ferrous metals, metals and alloys, food, petroleum and chemicals, machinery, lumber and many other business sectors. The company has solid positions in all of these businesses.
$13.2bnMitsubishi Materials1.46 trillion yen (2021 estimates), precious metals division, invests in copper mines overseas, urban mining (recycling)
$9.06bnHonda Trading Trading arm of Honda, responsible for over 6% of transactions in PGM each year (from their website)
$7.74bnSibanye StillwaterNet profit of $1.78 billion in 2020, the highest for any year since it was formed in 2013, revenue increased to $7.74 billion from $5.04 billion.
$5.83bnJohnson MattheyFrom 2020 Annual Report, £539m profit, £4.2bn sales (exc precious metals trading)
$1.91bnMatsuda Sangyo MATSUDA SANGYO CO.,LTD. is located in SHINJUKU-KU, TOKYO, Japan and is part of the Steel Service Centers & Other Metal Wholesalers Industry. MATSUDA SANGYO CO.,LTD. has 1,436 total employees across all of its locations and generates $1.91 billion in sales (USD). There are 52 companies in the MATSUDA SANGYO CO.,LTD. corporate family. (DNB report)
$733mSaxonia SAXONIA Holding GmbH has 710 total employees across all of its locations and generates $732.96 million in sales (USD). There are 17 companies in the SAXONIA Holding GmbH corporate family. (DNB report)
$114mSylvania PlatinumFrom 2020 Annual Report, EBIDTA $69.6m
$68mC HafnerC. Hafner GmbH + Co. KG is located in Wimsheim, Baden-Württemberg, Germany and is part of the Primary Metals Manufacturing Industry. C. Hafner GmbH + Co. KG has 198 employees at this location and generates $68.20 million in sales (USD). There are 7 companies in the C. Hafner GmbH + Co. KG corporate family.

Think of it as a handy port of call for background research. Some companies are good enough to list some details on their website, such as Honda Trading involved in over 6% of PGM volume annually. Only an affiliate member so will need to go through the full list to work out how many other major players are hiding in plain view!

from hondatrading website

Finally, the Matthey report is an excellent industry leading annual report. A must read for anyone investing in the PGM sector.

Key highlights (from Matthey report) 

Platinum 2020
  • The platinum market remained in deficit in 2020, with sharply lower supplies, and strong investment demand.
  • Autocatalyst consumption plunged by 22%, with steep falls in European diesel car production.
  • Industrial purchasing was more resilient, especially in China, where petrochemical and glass expansions went ahead.
  • Chinese jewellery demand slumped to a 20-year low, although record gold prices encouraged some retailers to stock more platinum.
  • Japan saw heavy bar purchasing in the first half of 2020, while ETF investment turned strongly positive in the second half.
  • Primary platinum supplies shrank by 20%, due to processing outages and pandemic-related disruption in South Africa.
  • Auto recycling contracted sharply on weak diesel scrap volumes in Europe and processing capacity constraints.
Palladium 2020
  • The palladium market remained in significant deficit, driving the price to all-time highs in early 2020.
  • A plunge in vehicle output was partly offset by higher palladium loadings on gasoline vehicles.
  • Consumption in chemical catalysts remained buoyant, with strong investment in new plants in China.
  • Other industrial demand fell sharply, due to COVID-related disruption and price-driven thrifting.
  • Investment demand remained negative, with further redemption of palladium ETFs.
  • Primary supplies were hit by mine closures and processing outages, while autocatalyst recycling also slowed.
Rhodium 2020
  • The rhodium market moved deeper into deficit as supplies dropped faster than demand.
  • With tighter emissions limits boosting catalyst loadings, auto demand fell by less than 10%.
  • Purchases by glass companies plunged, as high prices stimulated thrifting.
  • Primary supplies contracted sharply due to mine disruption and processing outages in South Africa.
  • The rhodium price surged to an all-time record of $17,000 in December 2020.
Outlook for 2021, all pgm
  • Pgm supply and demand are forecast to bounce back in a V-shaped recovery in 2021.
  • Autocatalyst demand will recover strongly, on higher car output and stricter emissions limits for trucks in China.
  • Industrial consumption will remain robust, with pgm use in chemicals set to reach an all-time high.