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Sodium Cyanide Market: Increase in Gold Mining to Offer Newer Opportunities

Sodium Cyanide Market: Key Highlights

·         The global sodium cyanide market was valued at ~US$ 2.2 Bn in 2018, and is anticipated to expand at a CAGR of ~4% during the forecast period.

·         The global sodium cyanide market is driven by growth in the gold mining industry in China, India, and Japan.  

·         Europe and North America are attractive regions of the global sodium cyanide market, led by the increase in industrial automation and technological reforms in these regions. Europe offers immense potential for investors operating in the industry. The market size is small in the region; however, there exists vast potential for mining and other applied products due to the growth of the chemical industry.

Key Drivers of Sodium Cyanide Market

·         In terms of value and volume, the global sodium cyanide market is expected to expand at a moderate pace during the forecast period. Rise in the demand for sodium cyanide in mining, dyes & paints, and pharmaceutical industries, and increase in the usage of sodium cyanide in polymer synthesis are anticipated to drive the global market during the forecast period.

·         The International Cyanide Management Code (referred as Cyanide Code) for the manufacture, use, and transport of sodium cyanide during the production of gold and silver may also help promote sodium cyanide management practices.

·         Sodium cyanide is also an economically viable and environmentally sustainable technology for gold ore processing.

 

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Solid Form to Offer Attractive Opportunities

·         In terms of form, the solid segment accounted for a major share of the global sodium cyanide market in 2018. The segment is anticipated to continue its dominance during the forecast period, as it is comparatively easy to transport.

·         In either the solid or liquid form, sodium cyanide may be transported by rail or road in bulk quantities, often long distances, from the manufacturing site to remote areas. For instance, it could be transported for usage in gold beneficiation and base metal flotation. Countries have enacted stringent regulations and guidelines for the transportation and usage of sodium cyanide, as exposure to the solid form can be hazardous due to its ability to release poisonous hydrogen cyanide gas slowly into the air.

 

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Adverse Effects of Sodium Cyanide on Environment to Hamper Market

·         Stringent environmental regulations imposed on chemicals are adversely affecting the consumption of sodium cyanide across the globe. Environmental regulations for chemicals are primarily related to the disposal of waste gases, wastewater, and mineral residues.

Asia Pacific Dominates Sodium Cyanide Market

·         Asia Pacific accounted for a leading share of the global sodium cyanide market in 2018, due to the increase in the demand for gold and silver products in the region; and rise in the demand for chemicals and gold extraction, especially in countries such as China and India. China and India are among the prominent gold producing countries in the world.

·         China, Australia, and India are global leaders in term of sodium cyanide production. These countries witness the maximum demand for sodium cyanide in Asia Pacific. However, organizations such as the International Cyanide Management Code have enacted precise guidelines on the usage of sodium cyanide. This is estimated to adversely affect the market in Asia Pacific in the near future. There have been initiatives to substitute sodium cyanide in gold recovery, as it is hazardous to the environment. However, it still remains the most eco-friendly among similar products.

 

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Top Five Players Account for Key Share of Sodium Cyanide Market

·         The sodium cyanide market is dominated by a few major players such as Cyanco, The Chemours Company, Orica Limited, Evonik Industries AG, and Australian Gold Reagents Pty Ltd. These companies held ~ 70% share of the market in 2018.

·         Other key companies that manufacture sodium cyanide include Taekwang Industry Co, Ltd., Asahi Kasei Corporation, Sasol Limited, Changsha Hekang Chemical Co., Ltd., Draslovka Holding B.V., and American Elements.

·         Major players are strengthening their distribution channels to increase their market share. They are also expanding their global presence by establishing production facilities in developing regions to capture untapped markets. Mergers and acquisitions are likely to alter the market shares of companies during the forecast period. The implementation of stringent regulations on the production and usage of sodium cyanide is estimated to discourage new companies from entering the market.

 

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