Production World supply/demand balance

World PVC production was 23.3 x 10 t/a in 2000, and growth ranged from -3% (Japan) to +8% (China). Overall long-term growth worldwide is estimated at ca 4%. Table 16 summarizes the world supply/demand balance. 

The global demand for methanol has increased about 8%/yr from 1991 to 1995. The global production capacity of methanol has expanded by about 5.1 million metric tons, or 23% in the same time period. Leading the growth is increased methanol demand for MTBE and formaldehyde production. The world methanol supply/demand balance is shown in Table 3.19. 

Before World War n, pynites had been a governor on sulfur pricing, but after the war their influence diminished. More standard maiket fundamentals of supply-demand balance now influenced product pricing a summary of which is given below ... 

A useful summary of levels and trends in mine and smelter production, and of developments in refined metal consumption is provided by the industry metal balance. The balance can be drawn up for particular areas or regional markets, but most commonly covers the Western World, see Table 2.2. It pulls together the various elements of Western World lead supply and demand (including, separately, net trade with the Eastern Bloc in concentrates and refined metal), and focuses attention on the overall balance between them, with metal surpluses or deficits expressed in terms of an apparent change in stocks over a given period (usually a quarter or a year). In this way, the prevailing market position can be (fairly) accurately assessed and compared with developments in price and other market indicators (like reported stocks, turnover, etc). The construction of a metal balance also often forms the basis of forecasts of future trends in supply, demand and price (see Chapter 16). 

For the noble metals used in oxidation, the loading is about 0.1 oz per car, with calls for a million ounces per year. The current world production rates of platinum, palladium, and rhodium are 1.9, 1.6, and 0.076 million ounces respectively the current U,S. demand for platinum, palladium, rhodium, and ruthenium are 0.52, 0.72, 0.045, and 0.017 million ounces respectively (72, 73). The supply problem would double if NO reduction requires an equal amount of noble metal. Pollution conscious Japan has adopted a set of automobile emission rules that are the same as the U.S., and Western Europe may follow this creates a demand for new car catalysts approaching the U.S. total. The bulk of world production and potential new mines are in the Soviet Union and South Africa. The importation of these metals, assuming the current price of platinum at 155/oz and palladium at 78/oz, would pose a balance of payment problem. The recovery of platinum contained in spent catalysts delivered to the door of precious metal refiners should be above 95% the value of platinum in spent catalysts is greater than the value of lead in old batteries, and should provide a sufficient incentive for scavengers. 

The world s supply of rhodium is in approximate balance with demand with erratic releases onto the world market from Russia being counterbalanced by national and industrial stockpiles. These fluctuations in availability are reflected in the spot price, which fell from US 64 at the millennium to US 17g by 2001. The current price in 2004 is US 26 g. Of the 2002 world production of 19.0 tonnes and recovered scrap from automobile catalysts of 3.1 tonnes, over 80% was used as rhodium alloy catalysts for automobile emission reduction. The rhodium component is vital in controlling NO emissions and looks set to increase in order to meet higher emission control standards. 

Model development started with analysis of the behavior of the real price of platinum overtime. The nominal price was deflated by the consumer price index. Preliminary analysis indicates that the mean real price may be constant over a 100 year span however, statistical tests are being performed to validate this result (see Figure 5). Excursions from the mean real price can be accounted for by specific events, for example, World War I and the U.S. regulations on automotive emissions. However, over time, the supply and demand come back into balance through increases in production or substitution of non-PGM materials. 

Real-World Reading Link When demand for a product equals the available supply, the price remains constant. If demand exceeds supply, the price of the product increases. The price becomes constant again when supply and demand regain a state of balance. Systems at equilibrium behave in a similar way. 

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