The extraordinary physical properties of the platinum group make its metals almost indispensable in a wide range of industrial applications.
Autocatalysts
Motor vehicle exhaust systems are fitted with catalytic converters to reduce the polluting effects of exhaust emissions. The converter's main component is a ceramic honeycomb, the surface of which is coated with platinum and rhodium, to which palladium is sometimes added. The main form of autocatalyst is a three way converter, so called because as engine exhausts pass through the converter at around 300°C, these precious metals convert nitrogen oxide, unburnt hydrocarbons and deadly carbon monoxide into harmless nitrogen, water and carbon dioxide.
Autocatalysts, which account for more than 40 per cent of total demand for platinum alone, are the major demand sector for PGMs - and for the next few years this market is unlikely to see any economically viable substitutes for these metals. It is believed that total autocatalyst demand for platinum was some 1.5 million ounces in 1989. Palladium supplies to the industry in 1989 amounted to 265 000 ounces. In the same year record amounts of rhodium, a rare metal, far more expensive than platinum, were used in autocatalyst manufacture: autocatalysts accounted for 79 per cent of total rhodium demand of 330 000 ounces, around 56 per cent being supplied by South Africa.
The major industrialised countries of the world - spearheaded by the United States, Japan and, most recently, the European Community member states are enacting legislation to apply increasingly stringent auto emission standards, in spite of developments like lean-burn engine technology (which aims at complete petrol combustion), and Ford's claims (subsequently shown to be exaggerated) regarding a new type of platinum-free, palladium oxidation catalyst, for the foreseeable future platinum/palladium/rhodium catalysts are likely to be the overwhelming choice of motor manufacturers worldwide. Autocatalyst demand, and especially that for the three way converters with their higher unit loadings of precious metal, continues to be encouraging. As a result of the European Parliament's series of votes in favour of tighter emission controls, 80 per cent of European cars were required to carry three way catalytic converters by 1993.
Jewellery
Today, around 38 per cent of the world's platinum finds its way into jewellery. Japan, which accounts for almost half of total free market demand for the metal, is by far the world's largest consumer of platinum for jewellery fabrication. Japan has traditionally favoured the metal over gold or silver. Elsewhere sales of platinum appear to have improved in other countries in the Far East and climbed steadily in the two major European markets, Italy and Germany.
Investment
Platinum has established a recognition for itself as a legitimate, complementary holding to gold and silver, primarily in that country, and also the United States and Western Europe. As growing evidence of this Johnson Matthey (UK marketing agents), as well as the Chinese, Australian, Canadian and former USSR governments, all launched platinum coins and medallions on to the market, with the Canadian Maple Leaf, the Isle of Man Noble and the Australian Koala dominating the legal tender coin investment sector.
Industry
In this sector, demand essentially arises out of the servicing of platinum requirements to make up losses incurred in use and through recycling. Any growth, therefore, is largely dependent on the establishment of new capacity, although new applications for PGMs continue to be discovered in a widening range of industries.
PGMs continue to maintain their long association with the electrical and electronics industry, which accounts for 50 per cent of annual palladium and ruthenium demands. Although traditional usage of PGMs in electrical contacts has declined, the 'micro-chip' era opened up a wide range of novel electronic applications. The use of iridium crucibles at very high temperatures for growing single crystals of specialised electronics materials is but one example demonstrating that PGMs are proving indispensable in many facets of electronics technology.
In the chemicals industry, the most important area of application for PGMs is in the production of nitric acid, essential for fertilizer and explosives manufacture and a host of other chemical uses. In the electro-chemical sector, ruthenium and iridium are used to coat electrodes for the production of chlorine, while iridium is employed in petroleum refining and other catalysts.
Platinum is essential to the petro-chemical industry. It is used as a reforming catalyst in the production of higher-octane fuels and the more complete exploitation of the various fractions of crude oil World demand for oil is recovering. which is resulting in more platinum and other PGMs such as iridium being needed to top up considerable stocks of reforming and isomerisation catalysts, while upgrading of refining capacity and construction of new isomerisation capacity will lead to greater demand. In addition, as the petroleum industry has pruned much excess capacity, the resultant sale back to the market of platinum recycled from spent catalyst has slowed down.
PGMs are used in the glass industry in two principal fields - glass fibre, and other optical and high-performance glass. in glass-fibre product/on, the fibres formed as molten glass are extruded through fine bushings. These are invariably made of rhodium/platinum alloys [n the case of optical and high-performance glass used in camera and instrumentation manufacturing, video equipment and television, there is still no substitute for platinum. Other areas of growth for platinum include catalysts for air pollution control, water purification and electrodes for cathodic protection against erosion.
Finally, motor manufacturers are introducing platinum-tipped spark plugs that offer longer life and improved combustion and fuel efficiency.
Medicine
Palladium is rapidly supplanting gold in dentistry. Platinum is used in the treatment of certain types of cancer. In the future PGMs may play a role in fighting viral. bacterial and parasitic infections: they may also come to be used as diagnostic tools.
Fuel cells
The clean and efficient fuel cell of the future, in which platinum catalysts are used to convert the chemical energy of a fuel into electrical energy, has for some time been seen as the next new major demand sector in the industrial area. Two problems plague further moves to achieve wide commercialisation of fuel-cell systems which utilise a platinum catalyst. Firstly, the current high capital cost of the pro-production units makes them uncompetitive: secondly, proof of reliability can only be achieved through demonstration of the generating plants. It is forecast that there will be an increasing call for these types of cell in specialist applications, such as in the aerospace, defence and leisure industries. |