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Japan's carbon black industry beats expectations despite earthquake
FOCUS forecast was published by Argex, a Canadian junior mining company which has retained Ti-Insight to provide regularly updated overviews of the TiO2 industry. In its initial report, published towards the end of January 2011, Ti-Insight was forecasting an average global price of $4.80 per kilo for 2015. This would be double the $2.40 per kilo, assessed as the global average price for 2010. Doubling in five years is equivalent to an average rate of growth of nearly 15% per annum. The revised forecast indicates an increase of more than 20% per annum on average. However, rather than straight-line growth, Ti-Insight envisages a particularly rapid upsurge in TiO2 pigment prices this year and next year, followed by fairly rapid deceleration towards the middle of the decade as new pigment capacity comes on-stream. The company points out: “On a constant dollar basis, TiO2 pigment prices in 2011 are only just now reaching price levels obtained in 1980 and they remain well below the peak prices levels of 1989 and 1990. Prices would need to increase by approximately 30% this year to reach the peak constant dollar level obtained in 1989.” Ti-Insight was co-founded in November 2008 by Mr Gary Cianfichi and Mr Augustus Williamson, both of whom had previously worked for more than 20 years at Cristal Global, Millennium and predecessor companies. Argex owns a large hardrock titanium minerals deposit near Lac de la Blache (about 150 km inland from Baie Comeau, Quebec) and it has ambitious plans to become a major player in the industry when it fulfills its aim of producing 600,000 tonnes/y of a product containing 99.8% TiO2 directly from low-grade ore, employing a new ‘oxychloride’ process developed by Process Research Ortech and Canadian Titanium Ltd. Press Release from: Argex Mining Inc, Suite 2040, 2020 University Ave, Montréal, Québec H3A 2A5, Canada, tel: +1 (416) 848 0307, website: http://www.argex.ca (31 Aug 2011)
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The impact of the 11 March earthquake and early April aftershocks in northern Japan was a major factor, forcing certain carbon black producers and consumers to suspend operations and then invest in costly repairs. The closure of Tokai Carbon’s Ishinomaki plant and of Mitsubishi Chemicals’ Onahama plant meant the loss of 7500 tonnes of carbon black per month. For the first six months of 2011, production was 340,669 tonnes. Shipments were 343,119 tonnes, of which 319,792 tonnes for the tyre and rubber sector. Activity in Japan’s automotive industry recovered much faster than originally anticipated. Also, Japan’s carbon black exports have improved. The Japan Carbon Black Association has revised its forecast for full-year 2011 shipments (domestic plus exports) to 813,322 tonnes. This will be 3.0% lower than the actual outturn for 2010, but previously the forecast had been for a 4.8% fall. Original Source: Japan Chemical Web, 1 & 8 & 23 Sep 2011, (Website: http://www.japanchemicalweb.jp) © The Chemical Daily Co Ltd 2011
European paintmakers see falling profits caused by raw material cost upsurge Major European paintmakers – AkzoNobel, BASF, Tikkurila and others – are despondent about their prospects for maintaining profitability. Although sales volumes showed a healthy increase, comparing 1H 2011 with 1H 2010, paint suppliers have been unable to raise their prices fast enough to match the upsurge in raw material costs. European TiO2 pigment prices have risen by 40% over the past 18 months. The index of paint raw material prices has increased by 20% over the past year and it has increased by 60% over the past two years. Original Source: Coatings World, Sep 2011, 16 (9), 24-25 (Website: http://www.coatingsworld.com/) © Rodman Publishing 2011
PLANTS Japan’s carbon black industry beats expectations despite earthquake Japan’s carbon black production fell by 3.9% and shipments fell by 2.2%, comparing 1H 2011 against 1H 2010.
NOVEMBER 2011
China: Cabot & Shanghai Coking Chemical – black masterbatch Cabot Corp held an official opening ceremony for its new 45,000 tonnes/y
carbon black masterbatch plant at Tianjin on 19 September – only seven months after the commencement of construction work. The ceremony was attended by Mr Zhang Jun (Vice Director of the Tianjin Economic Technological Development Area) and by Mr Sean Keohane (Cabot’s General Manager, Performance Products). The plant cost $20 M to build and it has been designed to facilitate ready expansion to 80,000 tonnes/y in line with market demand. Also at this site, which is operated as a 70:30 joint venture between Cabot and Shanghai Coking Chemical (part of the Shanghai Huayi group), is the world’s largest carbon black plant, with a capacity of nearly 300,000 tonnes/y. The new masterbatch plant has been heralded as Cabot’s first such plant to be fully integrated with carbon black production at the same site. Mr Jin Minda (Chairman of Shanghai Huayi) said: “During the past 23 years, we have partnered with Cabot on business opportunities from Shanghai to Tianjin and we have achieved much success together. Cabot brings to the China market not only new products, but also the most advanced technologies.” Original Source: Plastics Today, 21 Sep 2011, (Website: http://www.plasticstoday.com/) © UBM Canon 2011
China: Jiangxi Black Cat – precipitated silica Jiangxi Black Cat Co has established itself as the leading Chinese-owned carbon black producer, with a capacity of 420,000 tonnes/y, as a result of vigorous expansion over the past five years. (See also ‘Focus on Pigments’, Oct 2010, 6). The company is now keen to establish a leading position in the precipitated silica industry. Following the successful operation of a pilot-scale 1000 tonnes/y unit at its Jingdezhen complex (Jiangxi province), Jiangxi Black Cat recently brought on-stream a 20,000 tonnes/y precipitated silica plant here. Capacity will be trebled over the next few years, generating an anticipated annual revenue stream of around Rmb 1 bn (equivalent to $150 M). Notch Consulting News, 14 Sep 2011 (Website: http://notchconsulting.wordpress.com)
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ON
PIGMENTS
The impact of the 11 March earthquake and early April aftershocks in northern Japan was a major factor, forcing certain carbon black producers and consumers to suspend operations and then invest in costly repairs. The closure of Tokai Carbon’s Ishinomaki plant and of Mitsubishi Chemicals’ Onahama plant meant the loss of 7500 tonnes of carbon black per month. For the first six months of 2011, production was 340,669 tonnes. Shipments were 343,119 tonnes, of which 319,792 tonnes for the tyre and rubber sector. Activity in Japan’s automotive industry recovered much faster than originally anticipated. Also, Japan’s carbon black exports have improved. The Japan Carbon Black Association has revised its forecast for full-year 2011 shipments (domestic plus exports) to 813,322 tonnes. This will be 3.0% lower than the actual outturn for 2010, but previously the forecast had been for a 4.8% fall. Original Source: Japan Chemical Web, 1 & 8 & 23 Sep 2011, (Website: http://www.japanchemicalweb.jp) © The Chemical Daily Co Ltd 2011
European paintmakers see falling profits caused by raw material cost upsurge Major European paintmakers – AkzoNobel, BASF, Tikkurila and others – are despondent about their prospects for maintaining profitability. Although sales volumes showed a healthy increase, comparing 1H 2011 with 1H 2010, paint suppliers have been unable to raise their prices fast enough to match the upsurge in raw material costs. European TiO2 pigment prices have risen by 40% over the past 18 months. The index of paint raw material prices has increased by 20% over the past year and it has increased by 60% over the past two years. Original Source: Coatings World, Sep 2011, 16 (9), 24-25 (Website: http://www.coatingsworld.com/) © Rodman Publishing 2011
PLANTS Japan’s carbon black industry beats expectations despite earthquake Japan’s carbon black production fell by 3.9% and shipments fell by 2.2%, comparing 1H 2011 against 1H 2010.
NOVEMBER 2011
China: Cabot & Shanghai Coking Chemical – black masterbatch Cabot Corp held an official opening ceremony for its new 45,000 tonnes/y
carbon black masterbatch plant at Tianjin on 19 September – only seven months after the commencement of construction work. The ceremony was attended by Mr Zhang Jun (Vice Director of the Tianjin Economic Technological Development Area) and by Mr Sean Keohane (Cabot’s General Manager, Performance Products). The plant cost $20 M to build and it has been designed to facilitate ready expansion to 80,000 tonnes/y in line with market demand. Also at this site, which is operated as a 70:30 joint venture between Cabot and Shanghai Coking Chemical (part of the Shanghai Huayi group), is the world’s largest carbon black plant, with a capacity of nearly 300,000 tonnes/y. The new masterbatch plant has been heralded as Cabot’s first such plant to be fully integrated with carbon black production at the same site. Mr Jin Minda (Chairman of Shanghai Huayi) said: “During the past 23 years, we have partnered with Cabot on business opportunities from Shanghai to Tianjin and we have achieved much success together. Cabot brings to the China market not only new products, but also the most advanced technologies.” Original Source: Plastics Today, 21 Sep 2011, (Website: http://www.plasticstoday.com/) © UBM Canon 2011
China: Jiangxi Black Cat – precipitated silica Jiangxi Black Cat Co has established itself as the leading Chinese-owned carbon black producer, with a capacity of 420,000 tonnes/y, as a result of vigorous expansion over the past five years. (See also ‘Focus on Pigments’, Oct 2010, 6). The company is now keen to establish a leading position in the precipitated silica industry. Following the successful operation of a pilot-scale 1000 tonnes/y unit at its Jingdezhen complex (Jiangxi province), Jiangxi Black Cat recently brought on-stream a 20,000 tonnes/y precipitated silica plant here. Capacity will be trebled over the next few years, generating an anticipated annual revenue stream of around Rmb 1 bn (equivalent to $150 M). Notch Consulting News, 14 Sep 2011 (Website: http://notchconsulting.wordpress.com)
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