My basketIndustry Analyses
The following accounts give examples of recent INDUSTRY ANALYSES completed by Roskill Consulting Group. To protect confidentiality, client names & identifying data have been omitted.
Industry report on two alloy metals for a listing document
Assignment
A newly formed resources company wishing to list on a local stock exchange retained Roskill to produce a detailed industry report for the two metals. The client required a global overview of supply and demand for each product, plus a detailed analysis of regional supply and demand, together with a profile of potential purchasers.
Approach
Roskill reviewed demand, mine reserves, mine production and processing, cost curves, international trade and historical price trends for the two metals, providing a breakdown by principal geography and major end-use markets with a particular focus on the regional market under review. The historical supply demand balance was compared with price trends. The study identified key capacity expansion projects in the target region and worldwide and fed the results into a forecast of future supply and demand. The forecast took into account any policies and regulations in the target region that might impact on supply and demand. A price forecast for the following five years was supplied.
Results
The client was provided with a detailed industry report for each metal together with some information on likely purchasers in the target area. The independent evaluation supplied by Roskill was suitable for incorporation into a listing document.
Similar industry reports have been prepared for other companies, including a Chinese producer of a noble alloy that successfully listed on the Hong Kong Stock Exchange.
Review of the global market for a clay product
Assignment
The client, a multinational metals company but whose expertise was outside of the industrial minerals sector, was interested in discovering the market dynamics of a commodity and specialist clay product. A comparative study of the leading producers, an analysis of the value chain, competing products, and end-use trends and market outlook were all key requirements in the client’s brief.
Approach
Understanding the complexity of this particular clay mineral, often differentiated by its source location, and how processing could change both the physical and chemical properties to suit each application, was vital to establish the market dynamics. To achieve this, the study compiled a global picture of supply, describing graphically each company’s operations and therefore their respective position in the value chain. The mainly desk-based research programme was supplemented with interviews with consumers in each end-use market to gain a perspective on end-use trends, competing products, market share and prices across the range of clay products available.
Result
The report highlighted the difference between lower-value bulk producers and value-added product suppliers, and how this equated to market share across each end-use. An outlook for demand based on industry trends indicated where growth in demand was likely to come from medium-term as well as risks arising from substitution.
A study of the market for a ceramic material
Assignment
A producer of mineral fertiliser in Russia required a study of the market for a specialist ceramic material used in advanced ceramic applications. The aim of the study was to profile suppliers, map production and consumption globally, assess market prices and provide an outlook for demand. The client also required an appraisal of production methods and costs.
Approach
The ceramic material under review has a small, but high-value, market and is often produced alongside other ceramic materials and/or chemicals; therefore production, consumption and prices are less transparent than in bulk markets. Taking a top-down approach, primary research concentrated on contacting consumers to establish the major players, market share and prices, consumers were also questioned on their outlook for demand going forward. Primary and desk research was used to profile suppliers and establish production methods.
Results
The study established that there are two main methods of production and that producers were spread globally, although with a high concentration of emerging producers in East Asia. Increased demand is coming from replacement of metal parts in industrial processing and active materials in green energy.
