Metal Powder Industry Rebounding according to MPIF President.
Press Release Summary:
At PowderMet2010, MPIF president Michael E. Lutheran said metal powder industry returned to its growth track. Second half of 2009 showed 28% rebound in iron powder shipments, and that continued into first quarter of 2010 when shipments were 64% above same period in 2009. Also, first quarter 2010 copper and copper-base powder shipments rose 36%. Other positive indicators were cited for light-vehicle market, powder metallurgy, metal injection molding, and hot isostatic pressing.
Original Press Release:
Metal Powder Industry Rebounding
After several years of declining shipments, mainly due to falling light vehicle production in North America, the metal powder industry has returned to its growth track, reported Michael E. Lutheran, president of the Metal Powder Industries Federation (MPIF) here at PowderMet2010, the 2010 International Conference on Powder Metallurgy & Particulate Materials.
In 2009 the industry slowly began turning the corner, with a 28 percent rebound in iron powder shipments in the second half of the year. However, for the year total iron powder shipments declined 25 percent from 2008 to 244,839 short tons. Essentially, the industry hit bottom in 2009, marking five years of dwindling powder demand.
Copper and copper-base powder shipments have declined as well, with 2009 shipments declining 24 percent to 13,239 short tons.
But 2009 ended on a positive note, especially during the final quarter, Lutheran reported.
2010 Outlook
The strong rebound of last year's fourth quarter has continued into the first quarter of 2010 when iron powder shipments soared 64 percent above the same period in 2009 to 88,410 short tons. First quarter 2010 copper and copper-base powder shipments rose 36 percent to 3,977 short tons.
The Automotive Market
The light-vehicle market remains the dominant force impacting the powder metallurgy (PM) industry's financial health and future growth. With this in mind, Lutheran reported that the automotive industry will consume an estimated 230,000 short tons of PM parts in 2010. It is also estimated that PM parts content in the average-size vehicle will remain about the same as in 2009 with 41 pounds per vehicle. This is based on typical Detroit 3 usage and on overseas brands such as Toyota, Honda, and Hyundai-Kia actually increasing their PM content. The U.S. number continues to compare favorably with the European PM average parts content in 2009, 15.8 pounds as reported by the European Powder Metallurgy Association, and with that of Japan, 17.6 pounds in 2008 as reported by the Japan Powder Metallurgy Association.
GM's use of PM parts continues to be very strong at an average of about 48 pounds per vehicle. Ford is next at 45 pounds, Chrysler at 43 pounds, followed by the Asian brands at 38 pounds. However, some European SUVs and light trucks contain as much as 42 pounds of PM parts.
"There is more good news about the automotive market," Lutheran said. The new six-speed transmissions introduced by GM and Ford have a high PM content, in the 30-pound range. Several of Ward's 2010 Best Engine choices have high PM contents as well. Ford's 3.5L EcoBoost Turbocharged V-6 engine has 81 PM parts weighing a total of 21 pounds. The engine contains PM valve guides and valve seat inserts, connecting rods, oil pump, sensor ring, cam caps, VVT assemblies, camshaft sprocket, and crankshaft sprocket and hub.
The MPIF Technical Board continues to update the PM Automotive Parts Catalog launched last year. Aimed at automotive design engineers and materials specifiers, the catalog identifies up to 1,000 PM parts representing 325 applications in a typical vehicle. The applications are in the engine, transmission, and chassis. In addition to North America, the catalog also covers Europe, Japan, and Korea. And there are some new high-profile PM stars to showcase. The Tata Nano model contains PM parts in the valve train, as well as in the timing, hydraulic, and suspension systems. On the other end of the price range, luxury models like the Ferrari California and 456 Italia, and the Mercedes AMG SLS, all use advanced PM hydraulic-pump parts that are assembled into a double-clutch transmission.
MIM and HIP Trends
Bucking the negative PM marketplace trend last year, Lutheran reported, the U.S. metal injection molding (MIM) business performed fairly well, supported by the growing firearms and medical markets. In a survey conducted by the Metal Injection Molding Association (MIMA), 77 percent of the responding companies expect increasing sales in 2010. The three most significant business challenges faced by the MIM industry are global competition, raw materials costs, and meeting customer requirements. The top manufacturing challenges are new material development, continuous improvement, and maintaining and improving quality.
The MIM business will continue growing by replacing complex CNC-machined parts and investment castings. The annual U.S. MIM market is estimated at $170-$200 million, about the same as in Europe. The current market in Asia, which includes Japan, Taiwan, Singapore, Korea, and China, is estimated at $300 million. Europe's dominant MIM end-markets are automotive and high-end jewelry, while Asia focuses on electronics and consumer products. The total annual worldwide MIM market is estimated at $640 to $700 million.
The future of hot isostatic pressing (HIP) is bright, supported by growing sectors such as casting densification, MIM parts densification, aerospace and energy, near-net-shape powder parts, diffusion-bonded parts, cladding, and metal powder billets. New near-net PM applications in oil and gas exploration and land-based turbines are growth markets. HIPed PM tool steels, titanium, and more exotic alloys are growing as well, along with diffusion bonding for nuclear applications. For example, pilot projects involve diffusion bonding of the first wall of a reactor. In the electronics sector, sputtering targets made from metal powders represent the leading application. HIPed parts can range in size from tiny dental brackets to massive billets weighing more than 10,000 pounds.
Recognizing the growing influence and importance of isostatic pressing technology, this past year MPIF formed its newest association, the Isostatic Pressing Association.
Technology Developments
The PM industry's future will undoubtedly depend on new technology, Lutheran reported. Metal powder producers, equipment makers, and PM parts and products makers are all busy investing in new materials and process improvements. We must never write off the creative resiliency of the PM industry to overcome obstacles.
Metal powder companies are studying new materials and processes to advance PM's dynamic properties and competitiveness. New materials include lean diffusion-bonded alloys for heat treating and new materials for warm compacting and sintering hardening. Equipment builders are developing new electronically controlled compacting presses, rapid-tooling-change systems and higher-temperature and higher-efficiency furnaces.
The MPIF Technical Board is assessing technology issues that will impact PM's future growth. Its programs include single-press-to-full-density, an update on metal injection molding trends, and evaluating the potential threats of competitive and disruptive technologies and processes. The Technical Board is also studying potential PM applications in green energy and power.
The Center for Powder Metallurgy Technology (CPMT) is conducting programs aimed at generating a path to higher density via new tooling concepts and higher-tonnage presses capable of compaction pressures above 60 TSI. Final densities of more than 7.45 grams per cubic centimeter have been achieved on complex parts. The center is also developing data for establishing machinability guidelines and life-cycle-fatigue data. In all, CPMT is investing $150,000 in programs in 2010. Recognizing the shortage of trained PM engineers, CPMT continues to provide annual scholarships through the Clayton Family Foundation and the Howard I. Sanderow endowment.
Educating design engineers and the end-user industrial public has always been a focus and steady theme woven into many MPIF programs. To this end, MPIF released a new 13-minute video, "PM Touches Your Life," illustrating why PM is the preferred metal-forming solution. The video can be viewd on YouTube.
Standards development is another important industry program. In 2009 MPIF published a new edition of Standard 35, Materials Standards for PM Structural Parts. MPIF also published new editions of Standard Test Methods for Metal Powders and Powder Metallurgy Products, and Standard 35, Materials Standards for PM Self-Lubricating Bearings. The new information contained in these standards is vital to educating design engineers, purchasing agents, and other specifiers of materials. In addition, the Global PM Property Database continues to grow in content and serve global needs for information about PM products and materials.
With the launch of MPIF's sustainability initiative, PM's advantages as "a recognized green technology" are receiving prominent attention. PM's sustainable value comes from its net-shape capabilities and its very high materials-utilization advantage. We are an energy-efficient and green technology that must be promoted as such. We have a very positive message to tell.
"Let us view 2010 as a transition year leading us to a new era of opportunity in the global marketplace," Lutheran reported. "The industry has been challenged and shaken, yet the future is still positive. Again, never underestimate the creative resiliency of this industry to overcome and rise again to new heights. Competitive technologies that do, do so at their peril."
A copy of the complete State of the North American PM Industry is available by contacting Dora Schember at 609-452-7700 / dschember@mpif.org.
