Strict ballast water regulations drive demand for iridium and ruthenium

SMM: between 2019 and 2024, an estimated 40000 ships will have to install a new ballast water treatment system, (BWT), to continue operation to support the demand for iridium and ruthenium-based electrolytic chlorination systems. The International Maritime Organization (IMO) (IMO) Ballast Water Management Convention was implemented in September 2019. All ships weighing more than 400 gross tons are required to install a compliant and approved ballast water treatment system (BWT) by September 2024 at the latest.

Electrolytic chlorination is the preferred method for ballast water treatment, accounting for more than 1/3 of the world's installed systems (source: DESMI). It uses iridium and ruthenium coated electrodes to produce diluted sodium hypochlorite (bleach) in situ. Over time, the electrodes degrade, creating a regular replenishment demand for metals. Last year, demand for iridium and ruthenium for electrochemical applications reached 62 thousand ounces and 180 thousand ounces, respectively, but was interrupted by 2020 due to weak demand for some downstream products, such as polyvinyl chloride in the construction industry. However, the demand for electrodes is expected to continue until the early 1920s and will grow year-on-year in the long run.

The necessary upgrading of ballast water treatment has contributed to the activity of the workshop this year as ship operators seize the opportunity to refit and global shipping levels decline as a result of the epidemic. However, the main wave of modification and installation is expected to peak in 2022, during which time 15000 BWTS (source: DNV GL)) is expected to be installed and manufactured.

Affected by the South African coronavirus and smelter problems, both the iridium and ruthenium markets have been tight this year, affecting supply and causing shortages in both markets. The supply of iridium, especially those with the longest processing time of all platinum group metals, will be significantly affected in 2021. In the product inventory is expected to increase next year's refining production.