METAL POWDER TRENDS

From APMI/MPIF - The future of the North American powder metallurgy (PM) industry remains bright because of new technologies, improved PM material properties, innovative processes, and globalization, report Edul M. Daver, president of the Metal Powder Industries Federation (MPIF), and C. James Trombino, CAE, executive director/CEO, MPIF. They delivered the annual State of the North American PM Industry report at PowderMet2007 in Denver. For 2006, iron powder shipments declined about five percent to 416,828 short tons. The PM share of this amount also declined about 5 percent, to 377,004 short tons. Industry observers attribute this decline to the Detroit 3 automakers’ loss of market share to transplants and the shift away from SUVs and light trucks to passenger cars and crossover vehicles. SUVs and light trucks are heavy users of PM parts. Shipments of copper and copper-base powders declined 9.4 percent in 2006 to 21,789 short tons. The PM share of this amount dropped 6.4 percent to 18,228 short tons. These declines can be attributed to the previously cited reasons, as well as the loss of the domestic bearing business to manufacturers in Southeast Asia, and the very high price of commodity copper. Tin powder shipments declined slightly to 975 short tons. Stainless steel powder shipments rose by an estimated 5 percent to 10,185 short tons. Nickel powder imports into the United States rose about 11 percent to an estimated 10,000 short tons. The domestic aluminum powder market is estimated at about 50,000 short tons. The tungsten and tungsten carbide markets are estimated at 4,500 short tons and 6,500 short tons, respectively. Despite the challenges of coping with spiraling commodity prices, PM as a net-shape or near-net-shape technology has an important story to tell: the PM process saves raw materials by eliminating or reducing costly scrap. The metal injection molding (MIM) market, an industry bright spot, enjoys a consistent double-digit annual growth rate. The Metal Injection Molding Association (MIMA) estimates the 2006 international MIM market at $435 million, according to the following sales breakdown: Europe—$130 million, Asia—$130 million, and North America—$175 million. Some observers claim the global market is much higher, approaching $1 billion in sales. Another source puts the 2007 worldwide MIM market at over 4,500 short tons of metal powder, excluding hard metals. MIMA’s top growth markets for 2007 are medical, automotive, and electronic. Iron powder shipments for the first quarter of 2007 have increased by 3.9 percent to 108,291 short tons, while copper has declined again, impacted by the steadily rising price of commodity copper. The North American iron powder market is projected to end up either flat or increase by no more than 2 to 3 percent in 2007. The outlook for PM parts makers is mixed. Non-automotive niche product companies seem to be doing well when delivering higher-density and higher-performance parts. On the other hand, companies focused on the automotive market may or may not be holding their own, depending on whether or not they are making parts for so-called ‘hot’ platforms. Without a doubt, the vehicle product mix is changing drastically away from large SUVs and light trucks to passenger cars and crossover models, adversely affecting PM parts makers. Because of production cuts and shifts in OEM market shares, the average content of PM parts in North American vehicles will experience its first decline in decades, dipping 2 to 3 percent to slightly below 43 pounds in the 2007 model year. However, new program launches, such as the Ford Edge, spell good news for the PM industry. One PM automotive supplier claims they cannot make parts fast enough for this model. The new 2008 Cadillac CTS and STS sedan, both hot-selling models, will use the new 300-horsepower 3.6 liter V-6 engine with variable valve timing (VVT) and direct fuel in