US processors expected to invest significantly in new powder capacity

Published 26 July 16

US processors over the next two years are expected to add significantly to their powder production capacity, according to a report by Co-Bank, a co-operative bank serving rural America. Despite the current challenging market conditions, new projects in the works could add an estimated 200k tonnes of additional powder production over the next two years. Using global production data based on 2013 for WMP and SMP combined, would result in global production of these products increasing to just under 6,900k tonnes, an increase of 3%.

The report also outlines that US processors will need to be able to meet more stringent product specification requests and adjust production in response to changes in demand. In the long term, it is expected that these projects will pay dividends, due to opportunities in emerging markets and a growing world population.