The potassium gold cyanide (gold salt) market is highly concentrated and the gross profit margin of the industry is generally low.

Potassium gold cyanide, commonly known as gold salt, is an important gold plating chemical raw material and is widely used in the fields of industrial gold plating and decorative gold plating. Among them, industrial gold plating is mostly used in printed circuit boards, connectors, semiconductor devices, etc. Electronic information industry; decorative gold plating is widely used in jewelry, handicrafts and other fields.

In recent years, with the continued development of China’s printed circuit boards, semiconductors, connectors and other electronic information industries, China’s demand for gold potassium cyanide has shown an overall upward trend, except for a decline affected by the epidemic in 2020, driving industry consumption. overall increase. Stimulated by demand and coupled with the continued technological advancement of China’s potassium cyanide industry, the overall output of China’s potassium cyanide industry is on the rise. According to the“China Potassium Cyanide (Gold Salt) Industry Market Market Monitoring and Future Development Prospects 2023-2027 Research Report” released by the Industrial Research CenterIn 2022, China’s gold potassium cyanide industry output will be 136.3 tons and consumption will be 138.2 tons.

Potassium gold cyanide has high entry barriers, customer resource barriers, technical barriers, and financial barriers, and the industry entry threshold is high. After the “Catalogue of Hazardous Chemicals (2015 Edition)” was implemented in 2015, potassium gold cyanide was changed from a highly toxic chemical strictly controlled by the state to a general hazardous chemical. The market entry threshold was lowered, prompting the emergence of new competitors. , the level of market competition has been enhanced. At present, the main manufacturers in my country’s potassium cyanide industry include Yantai Zhaojin Lifu Precious Metals Co., Ltd., Hengyang Jinhong Fine Chemical Co., Ltd., Suzhou Xingrui Precious Metal Materials Co., Ltd., Jiangsu Suda Special Chemical Reagent Co., Ltd., and Koyo Chemical Applications Five companies of Materials Technology (Kunshan) Co., Ltd. occupy more than 70% of the market share, and the market concentration is high.

The gross profit margin level of manufacturers in the gold potassium cyanide industry is generally low, with a comprehensive gross profit margin of around 1%, which is closely related to industry characteristics and business models. Enterprises in the potassium cyanide industry use gold as the main raw material for processing in order to earn processing fees. They generally adopt the pricing model of “gold price + processing fee”. The unit processing fee is deducted from the unit processing cost to obtain the unit gross profit. However, enterprises When calculating revenue, not only processing fees are calculated, but gold value is also included in revenue and costs, and gold cost accounts for more than 95% of the product price, resulting in low gross profit margins for manufacturing companies.

Industry analysts said that potassium gold cyanide is a hazardous chemical and the state’s production, operation, storage, transportation and use of it All aspects including potassium cyanide are strictly supervised. Enterprises engaged in the potassium cyanide industry have strict entry thresholds and must have corresponding qualifications. my country’s potassium gold cyanide industry is highly concentrated, and because downstream customers are more cautious in choosing gold potassium cyanide suppliers, they generally will not change suppliers easily. This highly concentrated market competition pattern will be difficult to change in the future.