Precious Metals Production in the UK Industry Market Research Report Now Updated by IBISWorld

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The Precious Metals Production industry has been highly volatile over the past few years, reflecting dramatic shifts in the world prices for precious metals, declining industry participation and unsteady demand from downstream markets which have resulted in a compound annual decline in industry revenue of 3.3% over the five years through 2012-13. Industry revenue is forecast to return to modest growth over the five years through 2017-18 reflecting fairly stable output and gradually inflating world prices for precious metals.

IBISWorld industry market research
Recovering markets and metal price rises to return revenue to growth

The main products manufactured by the Precious Metals Production industry are refined silver, platinum and gold. Platinum sales are heavily influenced by the automotive industry where it is used for the manufacturing of catalytic converters. Gold and silver are both used for jewellery manufacturing and for investment purposes, although silver has many other industrial uses as well.

According to IBISWorld industry analyst Lewis Sutton, “the industry has been highly volatile over the past few years, reflecting dramatic shifts in the world prices for precious metals, declining industry participation and unsteady demand from downstream markets”. The industry is expected to generate revenue of £1.22 billion in 2012-13, compared with £1.45 billion in 2007-08. This equates to a compound annual decline of 3.3%. Industry revenue is expected to decline by 5.1% in 2012-13 as downstream markets falter.

Industry participation, in terms of the amount of firms present in the industry, has been declining for a number of years. Intense import competition has been responsible for driving many operators overseas, to take advantage of lower production costs. The numbers of industry establishments and enterprises have both fallen over the past five years, at compound annual rates of 3.9% and 3.5% respectively. Participation is expected to continue falling, but at a slower rate. The importance of international trade has grown substantially over the past five years, with imports now accounting for 74.7% of domestic demand and exports representing approximately 74% of revenue. This is expected to remain more stable over the coming years.

Industry revenue is expected to perform better over the next five years and with less volatility. Revenue is forecast to return to modest growth over the five years through 2017-18. Sutton adds, “this will reflect fairly stable output and gradually inflating world prices for precious metals.” Although participation will fall slightly over the coming years, this will be offset by improving conditions in the motor vehicle and jewellery manufacturing industries.

The Precious Metals Production industry has a moderate level of market share concentration with the four largest operators in the industry holding a combined market share of 59%. However, market share is heavily skewed towards the leading two operators, Johnson Matthey and Baird & Co, which account for approximately 54.5% of industry revenue.

For more information on the Precious Metals Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Firms in this industry refine precious metals like gold, silver and platinum. They may also undertake plating with precious metals.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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