MetalsPlus The New Metals Consultancy

M E T A L SResearch and Consulting

MetalsPlus

The New Name in Metals Consultancy


MetalsPlus in Brief


MetalsPlus

The new name in metals consultancy

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Client Focussed Metals Sector Consultancy at its Very Best

MetalsPlus, new name in metals consultancy with a long track record

• We have decades of metals-specific experience

MetalsPlus offers clients tailor-made solutions to problems

MetalsPlus also offers direction to company aspirations

We cover the complete supply chain

• From mine through to end-product markets


Our Vision

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We listen carefully to our clients’ needs

We address needs fully without compromise with results that are:

• Clear

• Concise

• Complete

• Accurate and

• Actionable

We work from a secure base of sector-specific knowledge and analytical tools

We never resort to stock answers to a client request

Our clients’ needs will always come first

Our clients’ success is our success


Sectors Served

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Metals

• from mine through to metals market dynamics and pricing

Industry

• from materials input

• to sector-specific market analysis and interpretation

Overview


Who We Are


Who We Are

MetalsPlus is owned and operated by Paul Dewison.

Projects will be run by Paul Dewison

• in many cases they will also be fulfilled exclusively by him

With deep industry links

• to other consulting firms

• to expert individuals

Outside data and consulting expertise will be brought in as appropriate

For each project, we will make clear about

• the composition of the project team

• the information resource base to be employed

To be sure that we fulfil all of your expectations

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Profile of Paul Dewison

Having graduated from Sidney Sussex College, Cambridge University with a degree in Geography, Paul Dewison followed on to work for a number of the big names in metals consulting. These included Commodities Research Unit and Brook Hunt (now Woodmac). More recently, having run his own consulting firm Metalica Ltd., Paul moved on to Bloomsbury Minerals Economics (BME) where he ran the copper publications and downstream consulting sides of the business.

In 2013 BME’s reports and consulting business was bought by Intierra, a business that became a part of SNL Metals & Mining in 2014. At SNL, Paul managed a commodity reports business, initiating the roll out of multi-metals and single metals publications similar to those in copper as well as continuing to work for single clients. In May 2015, Paul left full time employment at SNL to set up MetalsPlus Research & Consulting.

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Paul is a leading base metals industry consultant, focussing in particular on copper, nickel and on their downstream markets. Expertise spans other metals as well, including iron ore / steel, aluminium and zinc. Paul’s work ranges from commodity market analysis and forecasting to highly granular analysis of the industries that use metals.

Clients worked for include mining companies, financial interests, metals processors and industrial companies, and industry associations. As well as hands on research, Paul has been successful in business development and in managing a consulting and publications business in both large and small firms


What We Do


MetalsPlus Offering in Brief

Our expertise spans across metals markets to the industries that use metals

• from mine through to final assembled industrial product

Our breadth of coverage has benefits for both ends of the spectrum

• and all in between

To mine interests we offer

• a true understanding of where your product is destined.

To industry we offer

• an understanding of materials content dynamics

• sophisticated, granular industry-specific analysis

Our approach is market dynamic focussed

We assess value chain links and industry structure components

• to find advantage for our clients where this can best be found.

To May 2015, the MetalsPlus expertise was resident within other research firms

• Now we are able to give a better value offering

• more accurately targeted at achieving your goals10


Types of Assignment

Supply, demand and price analysis and forecasting

Supply chain mapping using zero-sum analysis techniques

Value chain dynamics, identifying apportionment of value

Mined and refined product differentiation and the implications

Scrap in the supply chain

Routes to market

Mine development pipeline in its market context

Smelter and refinery development in the market context

Granular demand sector analysis and forecasting by fabricated product

Granular demand sector analysis and forecasting by manufactured product

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Metals Sector (1)


Types of Assignment

Granular demand sector analysis and forecasting by industry sector

Inter-materials competition and the implications

Materials substitution, miniaturisation and other threats to metals use

Emerging technologies and new opportunities for metals

Promotional opportunity and leverage for metals / metals products

Mine sector industry analysis and competitor appraisal

Trends in mining and industry structure and the implications

Trends in metals processing industry structure and the implications

The ramifications of technology change

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Metals Sector (2)


Types of Assignment

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Industry (1)

Materials use and materials options in industrial products

Market segmentation and shares analysis

Supply, demand and price analysis and forecasting

Supply and value chain mapping, identifying apportionment of value

Routes to market, options compared

Granular demand sector analysis and forecasting by manufactured product

Granular demand sector analysis and forecasting by industry sector


Types of Assignment

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Industry (2)

Emerging technologies and new opportunities

Promotional opportunity and leverage by product

Competitor appraisal

Market appraisal relating to capacity expansion

Market appraisal relating to product development

Industry structure trends and the implications

The ramifications of technology change


Assignment Snapshots


Building Wire

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Accounting for around 15% of copper use, building wire is the largest of copper’s markets. Yet, it is often poorly understood, assumed to be a constant part of the building industries’ output of new built structures with few developments of interest in the wire market itself.

In fact, quite the reverse is true. In this analysis we carried out a detailed market segmentation by major country and region, identifying the unique characteristics of residential and non-residential sectors, of new building and refurbishment activity, and the relation of building wire to each. The survey looks at building wire in the context of wiring structures within buildings and the regulations attached to them. We also assessed the characteristics of different types and sizes of wire.

Through this process we discovered important regional differences between market segments and regions, in particular differences in intensity of use measured against floorspace in place and floorspace newly built. We also discovered a few important emerging trends, not least the penetration of 8000 series aluminium products

Market appraisal and forecast


Transformers

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Transformers form a crucial market for copper, aluminium, electrical steel and mineral oil. The scope of this research encompassed products from distribution transformers of 5 kVA to the largest power transformer of over 1,000 MVA, measuring the market in MVA, value, and materials content. The dynamics of incremental and replacement demand were assessed separately.

Though transformer design fundamentals changed little for decades, we found this to be an industry in that is now in flux. Faced by ever-tougher efficiency legislation, shifts in the structure of the emerging power network and gyrations in the cost of major materials, transformer manufacturers are making big changes to their product line up. As well as having major implications for materials suppliers, the industry itself is undergoing big changes.

The larger global players in the transformer industry, perhaps better able to cope with the demands of a changing market, often have a quite different design philosophy from their smaller counterparts. The research shows clearly that this is a business in a process of change that is by no means over

Industry analysis and forecast

Source: ABB


Electrical Steel and Copper

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Commissioned by a major industry body, this was a detailed review and forecast of the electrical materials used for their magnetic properties in motors, generators and transformers, namely electrical steel and conductor material (copper or aluminium).

The research involved a detailed analysis of the material content of electrical products, the design options applying, the logic of material choice and what this means for the volume and grades of material chosen.

In particular, for electrical steel the designer has a wide variety of material grade options, in general the choice of higher quality meaning lower volume but better margins.

The market interface

These margins, though, vary over time and relate to the relative bargaining power of suppliers and consumers. We took a close look at this evolution, taking into account the relative market position of different material grades of steel and also of copper, which if used in more volume may allow less or lower grade steel to be used.

The project required us also to carry out a detailed appraisal of the supply side of the electrical steel equation.


Promotion Opportunity

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Commissioned by a major industry body, the purpose was firstly to identify how product specification decisions are made, and who makes them. Here, we looked at the parties involved within a corporate structure (including engineering, procurement and marketing), the relative position of plant location and head office, and the relative importance of different companies along a complex supply chain from basic manufactured product through to final assembly and then final consumer.

The second part was then to identify applications which offered the greatest opportunity for promotion (or marketing) leverage. Part of this is about access, and thus falls out of the decision making work. Other issues are the intrinsic merit of a marketing argument, the nature of inter-materials competition and technology change and the market volume open to being gained or alternatively saved from being lost to competition.

In the process of doing this work, we developed a unique In house methodology for ranking promotional and marketing opportunities for basic materials.

An appraisal for all copper products


Nickel Marketing Plan

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In some ways, nickel straddles the divide between metals and industrial products. At the outset, the mining company may have a technical choice as to what product to make. The option chosen has deep implications for the markets to be addressed, the routes to market and the potential revenue stream of a mine project. Should the mining company focus on the most obvious market choice – stainless steel – or have the flexibility to address nickel’s more esoteric markets?

This research formed part of a feasibility study for a 60 ktpy nickel mine. The task was to decide what product to make from the options available (nickel cathode, rondelles, briquettes or other pure nickel, ferronickel or intermediates), what grade, which markets to address and to define the routes to market.

The project required a detailed market segmentation analysis, research into the differentiation in the products available from different mines, prices premia and discounts applying, customer requirements and ease of entry into the different market sectors.

Marketing plan for a new mine


For further information please contact Paul Dewison at:

[email protected]

Documents

MetalsPlus The New Metals Consultancy