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Paint still considered as a luxury product in India
F O C US retains a strong market position, with worldwide sales of 1.43 M tonnes. Current prices are quoted as $120 per tonne for 200-mesh, paint-grade talc and $87 per s.ton for good quality ceramic-grade talc. Industrial Minerals, Jan 2004, (436), 52
Low-cost Asian suppliers in US organic pigment markets US domestic organic pigment suppliers say they are seeing intense competition from cheap imports from India, China and elsewhere in Asia. These suppliers are also keen to build up sales in Latin America. Faced with competition in their home market, US pigment manufacturers are either trying to undercut the lower-priced imports, or they are establishing manufacturing positions in China or in other parts of Asia. Once a high-profit sector, organic pigments in the US market have now become more like commodities. US prices for most organic pigments have fallen to less than half their former value in the last ten years. However, data from China indicates that growth in the country’s imports of organic pigments is easily outpacing growth in exports. Compared against 1H 2002, China’s imports of organic pigments increased by 11.5% to 16,933 tonnes in 1H 2003 (valued at $74.405 M) while China’s exports of organic pigments increased by only 3.1% to 42,001 tonnes (worth $171.07 M). Chemical Week, 3 Dec 2003, 165 (43) & China Chemical Reporter, 6 Dec 2003, 14 (34), 22-24
Alleged dumping of pearlescent pigments in India Sudarshan Chemicals (of Pune, part of the DIC group) has filed a complaint with the Designated Authority in the Commerce Ministry of the Indian Government, alleging dumping of mica-based pearlescent pigments on the part of suppliers from China, Japan, the US and the EU. Business Line, 27 Dec 2003, 10 (357), 3
Swedish paint consumption approaching 120 M litres per annum The Swedish paints market is dominated by three suppliers –
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AlcroBeckers (part of the Tikkurila group), Nordsjö (part of the AkzoNobel group) and Fluegger. Altogether, there are 116 paint manufacturers in Sweden, with about 4000 employees altogether, producing about 5000 different paint products. Total sales of paint in Sweden amounted to 115 M litres, worth SKR 3.5 bn in 2002. Paint consumption is forecast to increase at 2% per annum over the next few years, thus maintaining Sweden’s relatively high per capita paint consumption figure. Imports of paints and pigments amounted to SKR 4.6 bn in 2002, of which TiO2 pigments accounted for 15%, while organic pigments accounted for 10%.
reports the average cost of TiO2 pigment at $1850 per tonne in the September 2003 quarter and $1875 per tonne in the December 2003 quarter. However, Mr Dani acknowledged that the Indian paint industry should benefit from the recently announced reduction in Custom duties and the removal of special additional import duties, which will mitigate the impact of higher raw material prices.
Farbe und Lack, Jan 2004, 110 (1), 11 (in German)
Brazil: Cabot – carbon black
Paint still considered as a luxury product in India “Within the Indian consumer market, paint is still considered to be a luxury product” according to Mr Ashwin Dani (Vice Chairman & Managing Director of Asian Paints, the country’s leading producer of architectural paints. This partly explains why India has such a low per capita paint consumption. Another factor is the lack of enthusiasm for do-it-yourself (DIY) house decorating and maintenance. A third factor is the fragmented nature of the paint industry in India, with relatively poor quality products offered by many small suppliers, tarnishing the industry’s overall image. There are reckoned to be 25003000 small-scale paint manufacturers in India, accounting for nearly 35% of the total paint market. Asian Paints claims a 40% share of the total Indian paint market. The company reported net sales revenue at Rup 13.2 bn for the first nine months of 2003 and although it operates in 23 countries, the home (Indian) market still accounts for 70% of total sales revenue. Asian Paints increased its paint prices across-the-board by 1.3% in September 2002 and by 3% in May 2003, but it encountered considerable resistance from purchasers. On the other hand, raw materials account for 60% of the unit cost of manufacturing paint and raw material costs have increased substantially. Typically, TiO2 pigment accounts for 25-30% of unit manufacturing costs. Asian Paints
Business Line, 28 Dec 2003, 10 (358), 13 & Paint India, Feb 2004, 54 (2), 97
PLANTS Cabot Brasil intends to build a third unit at its Maua carbon black plant in Sao Paulo province, increasing capacity there from 70,000 tones/y to 120,000 tonnes/y. The company has already filed plans to obtain the necessary Government approvals and the third unit should come into production towards the end of 2005. The Maua plant is already certified to ISO-9002 and ISO-14001 standards; the new unit will be designed to employ the same state-of-the-art technology. The capital cost of the third unit has been estimated at $25 M. Coupled with the recent doubling of its capacity in Shanghai (See ‘Focus on Pigments’, Mar 2004, 3), the Brazilian project should enable Cabot to retain its leadership in the world carbon black industry. Cabot currently has a 25% global market share. Press release from: Cabot Corp, Two Seaport Lane, Suite 1300, Boston, MA 02210-2019, USA, Website: http://www.cabot-corp.com (18 Feb 2004) & Chemical Week, 3 Mar 2004, 166 (8)
Canada: QIT – TiO2 feedstock QIT Fer & Titane, a wholly-owned subsidiary within the Rio Tinto group, has announced plans to raise its capacity for making UGS (upgraded slag), the patented “rutile replacement” feedstock containing 95% TiO2. The plant is located at Sorel (Quebec) and was first opened towards the end of 1997, with an initial capacity of 200,000 tonnes/y. Investment in building this plant was about C$ 460 M. During 2000, UGS
APRIL 2004
Low-cost Asian suppliers in US organic pigment markets US domestic organic pigment suppliers say they are seeing intense competition from cheap imports from India, China and elsewhere in Asia. These suppliers are also keen to build up sales in Latin America. Faced with competition in their home market, US pigment manufacturers are either trying to undercut the lower-priced imports, or they are establishing manufacturing positions in China or in other parts of Asia. Once a high-profit sector, organic pigments in the US market have now become more like commodities. US prices for most organic pigments have fallen to less than half their former value in the last ten years. However, data from China indicates that growth in the country’s imports of organic pigments is easily outpacing growth in exports. Compared against 1H 2002, China’s imports of organic pigments increased by 11.5% to 16,933 tonnes in 1H 2003 (valued at $74.405 M) while China’s exports of organic pigments increased by only 3.1% to 42,001 tonnes (worth $171.07 M). Chemical Week, 3 Dec 2003, 165 (43) & China Chemical Reporter, 6 Dec 2003, 14 (34), 22-24
Alleged dumping of pearlescent pigments in India Sudarshan Chemicals (of Pune, part of the DIC group) has filed a complaint with the Designated Authority in the Commerce Ministry of the Indian Government, alleging dumping of mica-based pearlescent pigments on the part of suppliers from China, Japan, the US and the EU. Business Line, 27 Dec 2003, 10 (357), 3
Swedish paint consumption approaching 120 M litres per annum The Swedish paints market is dominated by three suppliers –
4
O N
PIGMENTS
AlcroBeckers (part of the Tikkurila group), Nordsjö (part of the AkzoNobel group) and Fluegger. Altogether, there are 116 paint manufacturers in Sweden, with about 4000 employees altogether, producing about 5000 different paint products. Total sales of paint in Sweden amounted to 115 M litres, worth SKR 3.5 bn in 2002. Paint consumption is forecast to increase at 2% per annum over the next few years, thus maintaining Sweden’s relatively high per capita paint consumption figure. Imports of paints and pigments amounted to SKR 4.6 bn in 2002, of which TiO2 pigments accounted for 15%, while organic pigments accounted for 10%.
reports the average cost of TiO2 pigment at $1850 per tonne in the September 2003 quarter and $1875 per tonne in the December 2003 quarter. However, Mr Dani acknowledged that the Indian paint industry should benefit from the recently announced reduction in Custom duties and the removal of special additional import duties, which will mitigate the impact of higher raw material prices.
Farbe und Lack, Jan 2004, 110 (1), 11 (in German)
Brazil: Cabot – carbon black
Paint still considered as a luxury product in India “Within the Indian consumer market, paint is still considered to be a luxury product” according to Mr Ashwin Dani (Vice Chairman & Managing Director of Asian Paints, the country’s leading producer of architectural paints. This partly explains why India has such a low per capita paint consumption. Another factor is the lack of enthusiasm for do-it-yourself (DIY) house decorating and maintenance. A third factor is the fragmented nature of the paint industry in India, with relatively poor quality products offered by many small suppliers, tarnishing the industry’s overall image. There are reckoned to be 25003000 small-scale paint manufacturers in India, accounting for nearly 35% of the total paint market. Asian Paints claims a 40% share of the total Indian paint market. The company reported net sales revenue at Rup 13.2 bn for the first nine months of 2003 and although it operates in 23 countries, the home (Indian) market still accounts for 70% of total sales revenue. Asian Paints increased its paint prices across-the-board by 1.3% in September 2002 and by 3% in May 2003, but it encountered considerable resistance from purchasers. On the other hand, raw materials account for 60% of the unit cost of manufacturing paint and raw material costs have increased substantially. Typically, TiO2 pigment accounts for 25-30% of unit manufacturing costs. Asian Paints
Business Line, 28 Dec 2003, 10 (358), 13 & Paint India, Feb 2004, 54 (2), 97
PLANTS Cabot Brasil intends to build a third unit at its Maua carbon black plant in Sao Paulo province, increasing capacity there from 70,000 tones/y to 120,000 tonnes/y. The company has already filed plans to obtain the necessary Government approvals and the third unit should come into production towards the end of 2005. The Maua plant is already certified to ISO-9002 and ISO-14001 standards; the new unit will be designed to employ the same state-of-the-art technology. The capital cost of the third unit has been estimated at $25 M. Coupled with the recent doubling of its capacity in Shanghai (See ‘Focus on Pigments’, Mar 2004, 3), the Brazilian project should enable Cabot to retain its leadership in the world carbon black industry. Cabot currently has a 25% global market share. Press release from: Cabot Corp, Two Seaport Lane, Suite 1300, Boston, MA 02210-2019, USA, Website: http://www.cabot-corp.com (18 Feb 2004) & Chemical Week, 3 Mar 2004, 166 (8)
Canada: QIT – TiO2 feedstock QIT Fer & Titane, a wholly-owned subsidiary within the Rio Tinto group, has announced plans to raise its capacity for making UGS (upgraded slag), the patented “rutile replacement” feedstock containing 95% TiO2. The plant is located at Sorel (Quebec) and was first opened towards the end of 1997, with an initial capacity of 200,000 tonnes/y. Investment in building this plant was about C$ 460 M. During 2000, UGS
APRIL 2004