Metal Industry Rebounds from 5 years of decline.
Press Release Summary:
Michael E. Lutheran, president of Metal Powder Industries Federation (MPIF), said that North American powder metallurgy (PM) industry regained its growth momentum in 2010 after 5 years of declining demand. Explaining further, Lutheran explained rebound can be largely pinned on light-vehicle sales increases but that other end markets also gained. Based on first quarter of 2011, Lutheran reported that PM industry executives remain optimistic about business outlook.
Original Press Release:
Metal Powder Industry Rebounds
The North American powder metallurgy (PM) industry regained its growth momentum in 2010 after five dismal years of declining demand, reported Michael E. Lutheran, president of the Metal Powder Industries Federation (MPIF) here at PowderMet2011, the 2011 International Conference on Powder Metallurgy & Particulate Materials. While the dramatic rebound can be largely pinned on the increase in light-vehicle sales, other end markets also gained, he stressed. PM's design-engineering advantages, contributions to sustainability, and proven economies are stronger than ever.
The industry's real turnaround actually began during the last quarter of 2009 when customer inventories were at their lowest point and the pipeline needed refilling. This situation signaled a firming of demand for metal powders and PM parts. A clear indicator of rising production levels was the hiring spurt seen at many PM parts fabricator plants.
Total 2010 North American metal powder shipments increased about 35 percent to an estimated 451,021 short tons.
North American Metal Powder Shipments
2009 2010
Iron & Steel 244,839 353,121
Stainless Steel 4,500 (E) 6,700 (E)
Copper & Copper Base 13,239 18,000 (E)
Aluminum 55,000 (E) 55,000 (E)
Molybdenum 2,000 (E) 2,000 (E)
Tungsten 4,000 (E) 4,500 (E)
Tungsten Carbide 5,900 (E) 6,000 (E)
Nickel 4,500 (E) 5,000 (E)
Tin 543 700 (E)
(E) estimate 334,521 short tons 451,021 short tons
Total iron powder shipments in 2010 soared by 44.23 percent to 353,121 short tons. The PM parts share represented 315,192 short tons, a 50 percent increase over 2009 levels. Lutheran pointed out that 2009 was a dismal year and the increase brought the industry to levels still below its peak year of 2004, when iron powder shipments hit almost 474,000 tons. "Nevertheless, we are back on the growth track, regaining momentum in nearly every quarter," he said.
Copper powder shipments in 2010 also advanced to an estimated 18,000 short tons, a 36 percent increase from 2009. Stainless steel powder shipments jumped as well to an estimated 6,700 short tons, an increase of almost 50 percent.
North American metal injection molding (MIM)-grade powder shipments increased close to 29 percent in 2010 to over one million pounds.
Shipments of PM tool steel, high-alloy materials, and tungsten also registered gains in 2010.
Internationally, PM industry production rose in Europe, Asia, and South America last year. China, South Korea, Brazil, Japan, and India enjoyed substantial increases.
The 2011 Outlook
Based on the first quarter of 2011, PM industry executives remain optimistic about the business outlook, Lutheran reported. Iron powder shipments increased 9.1 percent in the first quarter, with the PM parts/friction materials sector up 10.1 percent. Stainless steel powder shipments remain robust and copper powder shipments are positive as well.
According to discussions with leading PM parts makers, business in the first half of 2011 looks very favorable. First-quarter sales reports show increases ranging from 10 to 35 percent with strong back orders. While many companies have rehired previously furloughed production workers, they are still running with leaner workforces than before.
Automotive Scene
Through April, demand remained firm in PM's largest market. PM parts found in new engines and six-speed transmissions use substantial amounts of metal powder. For example, GM and Ford six-speed models contain from 28 to 34 pounds of PM parts. Overall, the average U.S.-made vehicle in 2010 contained an estimated 41.6 pounds of PM parts, with a slight gain to almost 42 pounds forecast for 2011. In Europe, the average per vehicle in 2010 is estimated at 18.5 pounds.
Technology Developments
The hot isostatic pressing (HIP) market is growing, supported by demand for large stainless steel and superalloy HIPed near-net shapes for energy and industrial applications. Markets for PM high-speed steel and tool-steel wrought mill forms such as bar, plate, and wire are expanding as well. Future trends include PM HIPed shapes replacing forgings and castings because of improved and consistent microstructures, isotropic properties, and improved inspection, and HIP units capable of operating at higher temperatures.
The Isostatic Pressing Association (IPA), representing both HIP and cold isostatic pressing (CIP), reports increases in net-shape parts and in the development of new alloys. According to IPA, PM accounts for an estimated 42 percent of HIP applications. In contrast, PM accounts for an estimated 57 percent of CIP applications. Other uses of HIP and CIP include ceramics and densification of castings and MIM parts. The most important HIP and CIP end markets are aerospace, defense, electronics, oil and gas, and medical.
The Metal Injection Molding Association (MIMA) forecasts increasing sales in 2011. The association characterizes the growth of the MIM business today as having reached the evolutionary stage rather than the early hyper-growth of past years. The most important MIM markets are medical, firearms, electronics, dental, automotive, and telecommunications. There are approximately 40 MIM parts producers in North America accounting for an estimated $200 million in annual sales. Captive companies making parts for the orthodontic, medical, and firearms markets account for an estimated 30 percent of MIM production.
The MPIF Technical Board has been active in assessing threats and opportunities posed by competitive technologies as well as R&D priorities, and is investigating the potential of alternative-energy sources and lightweight materials as part of an upcoming technology assessment report. It is also working on revising the 10-year-old PM Industry Roadmap document.
For further details contact James Dale at MPIF (609-452-7700/jdale@mpif.org). A copy of the complete State of the North American PM Industry is available from Dora Schember at 609-452-7700/dschember@mpif.org.
