European plastic colorants demand growth forecast at 2.14% per annum

European plastic colorants demand growth forecast at 2.14% per annum

FOCUS sector. In China, micronised white barytes remains popular with local paint formulators. The anticipated 1015% increase in China’s production of...

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FOCUS sector. In China, micronised white barytes remains popular with local paint formulators. The anticipated 1015% increase in China’s production of liquid paints in 2006 will be reflected in an increase in barytes consumption here. The booming oil industry worldwide has emphasised the dwindling global supply of economically viable drilling grade barytes. Supplies of drilling grade material that satisfy industry standard specifications of 4.2 g/cu cm specific gravity have continued to decline, particularly in China. The average price of Chinese barytes rose by more than 40% between late 2003 and September 2005, due to declining material availability, high ocean freights, port congestion and other factors. Exports of Chinese barytes to the US have increased by 20-25% over the past 12-18 months. Despite the abundant occurrence of barytes in many countries, a lot of deposits are not suitable for drillinggrades, because the material cannot easily be separated and refined to achieve the API minimum specific gravity of 4.2 g/cu cm. Drilling muds need to have low levels of mercury, cadmium and water-soluble alkaline earth metals. Delivery cost considerations have also made some known barytes deposits not viable for drilling. Barytes demand is particularly strong in the Gulf of Mexico, where hydrocarbon exploration companies are trying to address the long term shortage of natural gas. According to the US Geological Survey (USGS), there has been a 70% rise in the total US rig count in the past three years, with the Gulf of Mexico accounting for most of the increased activity. US domestic production of barytes has risen by 19% over the past three years, while imports of crude barytes have increased by 56%. M-I Swaco (of Houston) launched a new barytes grade in January 2006, with a minimum density specification of 4.10 and the company has been urging the API to consider introducing a new standard which would accommodate the new product grade. Some industry observers are also in favour of this, pointing out that adoption of the new standard would help to extend the life of barytes reserves in Nevada. Industrial Minerals, Jan 2007, (472), 52-55 & Sep 2006, (468), 88

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Global demand for laser toners assessed at 220,000 tonnes/y According to Wacker, world consumption of toner for photocopiers and laser printers is currently running at 220,000 tonnes per annum. Most of this is represented for by black toner, but thanks to the increasing popularity of personal colour printers, the market share of colour toners is growing fast. In recent years, global demand for black toners has expanded by 3-5% per annum, while global demand for colour toners has expanded by 1525% per annum. Toner is essentially a dry mixture of resin and pigment particles, with certain additives. It is an important criterion of the toner formulation to facilitate and maintain optimal charge distribution. Wacker supplies the speciality additive HDK pyrogenic silica to keep the toner free-flowing and stable in storage. Wacker Worldwide (WWW), Oct 2006, (2.6), 4 (Available from: Wacker Chemie AG, Hanns-SeidelPlatz 4, 81737 Munchen, Germany, website: http://www.wacker.com)

World colour cosmetics spending to reach $30 bn by 2010 Global expenditure on colour cosmetics is forecast to increase from $24 bn in 2005 to $30 bn by 2010. Colour cosmetics are mainly used for: face makeup, mascaras and other eye makeup, lipsticks and nail polishes. L’Oréal is the global market leader, with a 34% market share, followed by Revlon with 20.7% and Procter & Gamble with 20.5%. Colour cosmetics account for about 15% of the total cosmetics and personal care market. ICIS Chemical Business Americas, 18 Dec 2006, (Website: http://www.icbamericas.com)

European plastic colorants demand growth forecast at 2.14% per annum According to Frost & Sullivan, Europe’s spending on plastic colorants amounted to €292.6 M in 2005 and it is forecast to rise at 2.14% per annum to reach €339.4 M in 2012. Growth in the high density polyethylene (HDPE) and polyethylene terephthalate (PET) sectors has been particularly good, with growth rates since 2001 ranging between 3.4%/y and 4.4%/y.

Packaging is an important end-use sector for coloured plastics and both HDPE and PET are widely used in the manufacture of plastic bottles and containers. Other end-use sectors of growing importance for coloured plastics are plastic films and plastic automotive parts. But European plastic colorant producers are faced with more aggressive competition from Indian and Chinese suppliers, who enjoy lower production costs and tend to buy their pigments and other raw materials more cheaply. For many classic organic pigments, European customers are often paying €2-3 per kilo more than Asian customers. Also, demand for plastic colorants in Europe is not growing as fast as in Asia. Many suppliers of colour masterbatches to European markets were profiled in a recent ‘P&C’ survey. The multinationals – Ampacet, Cabot, Clariant and Schulman – are prominent in many European markets. Tosaf (of Israel) and Finke Colors (of Germany) have recently established marketing positions in France. Market Report B404-39 from: Frost & Sullivan, website: http://www.chemicalsandmaterials.frost.com (18 Oct 2006) & Plastiques et Caoutchoucs Magazine, Oct 2006, (843), 50-55 (in French)

Japan’s TiO2 production hovers at around 250,000 tonnes/y According to the Japan Titanium Dioxide Association (JTDA), Japan’s production of TiO2 was 253,259 tonnes in the year to end-March 2006, representing a 0.6% fall from the previous year. Japanese manufacturers’ domestic shipments were 167,551 tonnes, versus 167,937 tonnes in the previous year. Japanese exports fell by 7.3% to 80,988 tonnes. JTDA forecasts an increase of 0.6% in domestic shipments and an increase of 2.0% in exports for the current fiscal year. The country’s production has hovered around the 250,000 tonnes/y level for the past five years, while domestic shipments have slipped back from a peak of nearly 172,000 tonnes in 2002/03. The paint industry remains the most important outlet, accounting for 46% of total domestic shipments last year. Following the closure of Furukawa’s plant at Osaka, the earlier closure of Tohkem’s plant at

JANUARY 2007