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China currently uses 2.5 M tonnes of paint
F O C U S the end of last year. Indeed, Mr Vercollone ended his presentation on a very upbeat note: “Tight supply in TiO2 pigment could occur if demand is at trendline for the next 18 months!” Reg Adams
MARKETS North American PCC demand heading for a slight decline this year North American demand for precipitated calcium carbonate (PCC) is expected to show a slight decline in full-year 2002, compared against fullyear 2001. The magnitude of the decline could be as much as 3%. Primarily, this has been caused by weak demand conditions in the office papers segment of the market. Mineral Technologies Inc (MTI), which dominates the global market in PCC with total installed capacity of around 3.15 M s tons/y, remains optimistic about future growth prospects. Indeed, MTI expects to declare an increase in its global PCC sales volume this year, with growth in overseas markets offsetting any decline in North America. Chemical Market Reporter, 9 Sep 2002 (Website: http://www.chemicalmarketreporter.com)
US spending on food colorants & adjuvants approaching $400 M The US spent almost $5 bn on food additives in 2001 and spending is expected to increase to $5.8 bn by 2006, according to a recent study from Business Communications Co (BCC, of Norwalk, CT). Flavourings and flavour enhancers represent the largest sector of the market and spending here is forecast to increase from $1.25 bn in 2001 to $1.46 bn in 2006. Sales of food colorants and adjuvants are forecast to reach $371 M in 2006. Chemical Engineering (New York), Jul 2002, 109 (7), 17,19
China currently uses 2.5 M tonnes of paint According to a recent report from Frost & Sullivan, China is expected to consume 2.5 M tonnes of paint this
NOVEMBER 2002
O N
PIGMENTS
year. Of current consumption, 27.5% is accounted for by architectural paints, 55.4% for liquid OEM paints, 4.9% for powder coatings (mainly used by OEMs) and 12.2% for other speciality paints. Demand for architectural paints is increasing at 15% per annum, while the industrial paints sector is growing at 7% per annum. There are about 2500 Chinese paintmakers, including State-owned corporations, companies funded by foreign investors and local/village enterprises. The village enterprises have a combined capacity of 900,000 tonne/y and the State corporations account for 1 M tonne/y. The overall capacity of foreign-funded paintmakers is 600,000 tonne/y and most of their output consists of specialised, high value added coatings. ICI Paints (in collaboration with Swire Pacific) and Akzo Nobel have been particularly prominent in establishing paint plants in China. Increasingly strict environmental regulations – particularly for the disposal of waste water – is tending to raise manufacturing costs for Chinese enterprises to levels approaching those for foreign-funded paintmakers. Health and safety legislation is also making an impact. With effect from 1 July 2002, there are legal limits on the content of specific ingredients of paints manufactured in China, including: benzene, ethylbenzene, dimethylbenzene, toluene, mixed xylenes, formaldehyde, mercury, cadmium and arsenic.
end of July 2002, but there was a marked slowdown during August and September because of widespread drought conditions. The reduction of interest rates for housing loans has provided a boost to activity in the real estate market, prompting a sharp increase in sales of decorative paints. There has been particularly rapid growth in exterior building paints, of the order of 20-22% over the year as a whole. Goodlass Nerolac, the market leader in automotive paints (with a market share of 43%) reported a slowdown in this important subsector of the industrial paints market. On the other hand, demand for paint for domestic appliances has increased by 10% this year. Indian paintmakers generally welcomed the reduction in import duty on TiO2 from 35% to 30%, but the benefits of this have been more than wiped out by higher crude oil and associated petrochemical prices. Hence, retail prices on paint in the Indian market increased slightly during the year. Traditionally, Indian paint companies were rather inward-looking, only concerned with the domestic market. However, Asian Paints is now becoming a prominent competitor in overseas markets. It recently paid Rup 576 M to acquire Berger International’s business, based in Singapore. It also paid Rup 245 M to acquire a 60% stake in SCIB Chemicals (of Egypt).
Asian Chemical News, 28 Oct 2002, 9 (377), 22-23
Business Line, 3 Nov 2002, 9 (304), 13
Spending on paint in India passes the $1 bn mark Expenditure on paint in India is estimated to have increased by 810% this year and may pass the $1 bn mark for the first time. Of total expenditure, the architectural paints sector accounts for 70%, the industrial paints sector for 30%. Asian Paints is the market leader, with a 38% share, followed by Goodlass Nerolac, Berger Paints and ICI Paints. Charts accompanying this article show the evolution of market shares and total Indian paint consumption over the past six years. The Indian architectural paint market was booming during the four months from the start of April to the
LEGISLATION EU tightens legislation on ingredients of sunscreens, hair colorants & cosmetics The 26th amendment to the EU Cosmetics Directive has now passed into legislation. The list of identified fragrance ingredients prohibited for use in any cosmetic product manufactured or sold in the EU has now been extended by 28. There are now limitations on the content of lithium hydroxide and calcium hydroxide as pH adjusters for depilatories. There are also limitations on the content of 60 identified ingredients in permanent hair colorants.
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MARKETS North American PCC demand heading for a slight decline this year North American demand for precipitated calcium carbonate (PCC) is expected to show a slight decline in full-year 2002, compared against fullyear 2001. The magnitude of the decline could be as much as 3%. Primarily, this has been caused by weak demand conditions in the office papers segment of the market. Mineral Technologies Inc (MTI), which dominates the global market in PCC with total installed capacity of around 3.15 M s tons/y, remains optimistic about future growth prospects. Indeed, MTI expects to declare an increase in its global PCC sales volume this year, with growth in overseas markets offsetting any decline in North America. Chemical Market Reporter, 9 Sep 2002 (Website: http://www.chemicalmarketreporter.com)
US spending on food colorants & adjuvants approaching $400 M The US spent almost $5 bn on food additives in 2001 and spending is expected to increase to $5.8 bn by 2006, according to a recent study from Business Communications Co (BCC, of Norwalk, CT). Flavourings and flavour enhancers represent the largest sector of the market and spending here is forecast to increase from $1.25 bn in 2001 to $1.46 bn in 2006. Sales of food colorants and adjuvants are forecast to reach $371 M in 2006. Chemical Engineering (New York), Jul 2002, 109 (7), 17,19
China currently uses 2.5 M tonnes of paint According to a recent report from Frost & Sullivan, China is expected to consume 2.5 M tonnes of paint this
NOVEMBER 2002
O N
PIGMENTS
year. Of current consumption, 27.5% is accounted for by architectural paints, 55.4% for liquid OEM paints, 4.9% for powder coatings (mainly used by OEMs) and 12.2% for other speciality paints. Demand for architectural paints is increasing at 15% per annum, while the industrial paints sector is growing at 7% per annum. There are about 2500 Chinese paintmakers, including State-owned corporations, companies funded by foreign investors and local/village enterprises. The village enterprises have a combined capacity of 900,000 tonne/y and the State corporations account for 1 M tonne/y. The overall capacity of foreign-funded paintmakers is 600,000 tonne/y and most of their output consists of specialised, high value added coatings. ICI Paints (in collaboration with Swire Pacific) and Akzo Nobel have been particularly prominent in establishing paint plants in China. Increasingly strict environmental regulations – particularly for the disposal of waste water – is tending to raise manufacturing costs for Chinese enterprises to levels approaching those for foreign-funded paintmakers. Health and safety legislation is also making an impact. With effect from 1 July 2002, there are legal limits on the content of specific ingredients of paints manufactured in China, including: benzene, ethylbenzene, dimethylbenzene, toluene, mixed xylenes, formaldehyde, mercury, cadmium and arsenic.
end of July 2002, but there was a marked slowdown during August and September because of widespread drought conditions. The reduction of interest rates for housing loans has provided a boost to activity in the real estate market, prompting a sharp increase in sales of decorative paints. There has been particularly rapid growth in exterior building paints, of the order of 20-22% over the year as a whole. Goodlass Nerolac, the market leader in automotive paints (with a market share of 43%) reported a slowdown in this important subsector of the industrial paints market. On the other hand, demand for paint for domestic appliances has increased by 10% this year. Indian paintmakers generally welcomed the reduction in import duty on TiO2 from 35% to 30%, but the benefits of this have been more than wiped out by higher crude oil and associated petrochemical prices. Hence, retail prices on paint in the Indian market increased slightly during the year. Traditionally, Indian paint companies were rather inward-looking, only concerned with the domestic market. However, Asian Paints is now becoming a prominent competitor in overseas markets. It recently paid Rup 576 M to acquire Berger International’s business, based in Singapore. It also paid Rup 245 M to acquire a 60% stake in SCIB Chemicals (of Egypt).
Asian Chemical News, 28 Oct 2002, 9 (377), 22-23
Business Line, 3 Nov 2002, 9 (304), 13
Spending on paint in India passes the $1 bn mark Expenditure on paint in India is estimated to have increased by 810% this year and may pass the $1 bn mark for the first time. Of total expenditure, the architectural paints sector accounts for 70%, the industrial paints sector for 30%. Asian Paints is the market leader, with a 38% share, followed by Goodlass Nerolac, Berger Paints and ICI Paints. Charts accompanying this article show the evolution of market shares and total Indian paint consumption over the past six years. The Indian architectural paint market was booming during the four months from the start of April to the
LEGISLATION EU tightens legislation on ingredients of sunscreens, hair colorants & cosmetics The 26th amendment to the EU Cosmetics Directive has now passed into legislation. The list of identified fragrance ingredients prohibited for use in any cosmetic product manufactured or sold in the EU has now been extended by 28. There are now limitations on the content of lithium hydroxide and calcium hydroxide as pH adjusters for depilatories. There are also limitations on the content of 60 identified ingredients in permanent hair colorants.
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