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Pipe coatings market offers growth opportunities
FOCUS and quartz dust) and they improve the chemical resistance of powder coatings. Original Source: Farbe und Lack, Jul 2011, 117 (7), 37 (Website: http://www.farbeundlack.de/) (in German) © Vincentz Network 2011
MARKETS Powder coatings. Costs continue to rise unabated German manufactures of powder coatings are currently faced with enormous price increases for raw materials. The prices for the white pigment titanium dioxide rose from €1600 per tonne to above €2600 per tonne, according to the latest report by the German Coatings Industry Association. Raw materials manufacturers announced further massive price increases which could double the price for titanium dioxide by early autumn 2011. Other problems are delays in deliveries and volume restrictions. Prices for binding agents also rose significantly since 2010. The price of epoxy resins rose by up to 85% and prices of polyester resins increased by 25-40% during the last few months. Prices for additives and colour pigments also rose in double-digit percentage figures. The association reports that political unrest in crude oil producing countries as well as the increasingly rising demand from the Far East make it difficult to predict the development of costs. A further problem is presented by the unfavourable supply and demand regulation for chemical commodities which result in continued partial delivery bottlenecks and supply problems for coatings raw materials. Original Source: Farbe und Lack, Jun 2011, 117 (6), 8 (Website: http://www.farbeundlack.de/) (in German) © Vincentz Network 2011
ON
POWDER
of “boom and bust,” in which new capacity investments are made at the peak of the demand cycle so that when demand bottoms out, the situation worsens with the new capacity coming on stream. The oversupply situation created depresses plant utilization rates further, and keeps the industry from returning to profitability at a later period as demand rebounds. This seems to be the case with the UK coatings sector, which is struggling to cope with the current supply issues it is facing. A glaring problem is in the supply of key classes of raw materials, particularly titanium dioxide, says the British Coatings Federation’s CEO, Tony Mash. The global titanium dioxide industry closed the year 2010 with prices surging, and reported increases for 2011 are also considerable, according to Merchant Research & Consulting. Low inventories of pigment opening the paint season and tight supply due to a lack of investment for several years underlie the current pricing expectations. Growth of the coatings industry is hampered by these supply problems. Most investments in production capacity for upstream raw materials are happening in Asia. While announcements of capacity investments have climbed in the first few months of 2011, it will have little strength to ease the current supply situation. US chemical company DuPont unveiled a major investment in a 200,000 tonne/y titanium dioxide capacity increase at its site in Altamira, Mexico, but its completion is not expected until end-2014. Upgrades are also ongoing at the company’s five titanium dioxide production sites that will see additional capacity of 150,000 tonnes/y. Original Source: Chemistry and Industry (London), 6 Jun 2011, (11) (Website: http://www.soci.org/) © SCI 2011
More of the same
Pipe coatings market offers growth opportunities
Industry observers say that the global chemical industry could be once again entering another cycle
Producers of coatings and their raw materials for steel pipelines will see opportunities for growth
6
C O AT I N G S with the many natural gas pipelines that are underway or are planned in Europe. A report from market research company Applied Market Information showed that European demand for pipeline coatings currently makes up 19% of the global total of about $5 bn, with Asia and North America accounting for 23% and 17%, respectively. Producers are partnering with equipment makers to develop new coating systems for steel pipelines. European polymer maker Borealis is preparing the full market launch of a coating for field pipeline joints that feature molten polyethylene, which it developed in collaboration with Finland’s KWH Pipeline Technology. France’s Arkema and Cybernetix are jointly developing a robotic technology for applying polyamide 11 coatings inside pipelines. Original Source: Coatings World, Jun 2011, 16 (6), 20-21 (Website: http://www.coatingsworld.com/) © Rodman Publishing 2011
DuPont invests in titanium dioxide at Altamira DuPont is spending $500 M to build a new titanium dioxide production line at its plant in Altamira, Mexico. The new line is anticipated to boost titanium dioxide supply by 200,000 tonnes by 2014. While DuPont is working on the new line, the company is also improving technological support to help its customers utilize less, but higher quality product. The titanium dioxide industry has bounced back from the global financial crisis two years earlier than anticipated, because of increased demand for titanium dioxide in paint in Latin America and other emerging economies. In 2010, DuPont estimates that titanium dioxide consumption in Brazil stood at 49,000 tonnes, while consumption in Mexico, Central America and the Andean countries totalled 108,000 tonnes, and consumption in the Southern Cone region, AUGUST 2011
MARKETS Powder coatings. Costs continue to rise unabated German manufactures of powder coatings are currently faced with enormous price increases for raw materials. The prices for the white pigment titanium dioxide rose from €1600 per tonne to above €2600 per tonne, according to the latest report by the German Coatings Industry Association. Raw materials manufacturers announced further massive price increases which could double the price for titanium dioxide by early autumn 2011. Other problems are delays in deliveries and volume restrictions. Prices for binding agents also rose significantly since 2010. The price of epoxy resins rose by up to 85% and prices of polyester resins increased by 25-40% during the last few months. Prices for additives and colour pigments also rose in double-digit percentage figures. The association reports that political unrest in crude oil producing countries as well as the increasingly rising demand from the Far East make it difficult to predict the development of costs. A further problem is presented by the unfavourable supply and demand regulation for chemical commodities which result in continued partial delivery bottlenecks and supply problems for coatings raw materials. Original Source: Farbe und Lack, Jun 2011, 117 (6), 8 (Website: http://www.farbeundlack.de/) (in German) © Vincentz Network 2011
ON
POWDER
of “boom and bust,” in which new capacity investments are made at the peak of the demand cycle so that when demand bottoms out, the situation worsens with the new capacity coming on stream. The oversupply situation created depresses plant utilization rates further, and keeps the industry from returning to profitability at a later period as demand rebounds. This seems to be the case with the UK coatings sector, which is struggling to cope with the current supply issues it is facing. A glaring problem is in the supply of key classes of raw materials, particularly titanium dioxide, says the British Coatings Federation’s CEO, Tony Mash. The global titanium dioxide industry closed the year 2010 with prices surging, and reported increases for 2011 are also considerable, according to Merchant Research & Consulting. Low inventories of pigment opening the paint season and tight supply due to a lack of investment for several years underlie the current pricing expectations. Growth of the coatings industry is hampered by these supply problems. Most investments in production capacity for upstream raw materials are happening in Asia. While announcements of capacity investments have climbed in the first few months of 2011, it will have little strength to ease the current supply situation. US chemical company DuPont unveiled a major investment in a 200,000 tonne/y titanium dioxide capacity increase at its site in Altamira, Mexico, but its completion is not expected until end-2014. Upgrades are also ongoing at the company’s five titanium dioxide production sites that will see additional capacity of 150,000 tonnes/y. Original Source: Chemistry and Industry (London), 6 Jun 2011, (11) (Website: http://www.soci.org/) © SCI 2011
More of the same
Pipe coatings market offers growth opportunities
Industry observers say that the global chemical industry could be once again entering another cycle
Producers of coatings and their raw materials for steel pipelines will see opportunities for growth
6
C O AT I N G S with the many natural gas pipelines that are underway or are planned in Europe. A report from market research company Applied Market Information showed that European demand for pipeline coatings currently makes up 19% of the global total of about $5 bn, with Asia and North America accounting for 23% and 17%, respectively. Producers are partnering with equipment makers to develop new coating systems for steel pipelines. European polymer maker Borealis is preparing the full market launch of a coating for field pipeline joints that feature molten polyethylene, which it developed in collaboration with Finland’s KWH Pipeline Technology. France’s Arkema and Cybernetix are jointly developing a robotic technology for applying polyamide 11 coatings inside pipelines. Original Source: Coatings World, Jun 2011, 16 (6), 20-21 (Website: http://www.coatingsworld.com/) © Rodman Publishing 2011
DuPont invests in titanium dioxide at Altamira DuPont is spending $500 M to build a new titanium dioxide production line at its plant in Altamira, Mexico. The new line is anticipated to boost titanium dioxide supply by 200,000 tonnes by 2014. While DuPont is working on the new line, the company is also improving technological support to help its customers utilize less, but higher quality product. The titanium dioxide industry has bounced back from the global financial crisis two years earlier than anticipated, because of increased demand for titanium dioxide in paint in Latin America and other emerging economies. In 2010, DuPont estimates that titanium dioxide consumption in Brazil stood at 49,000 tonnes, while consumption in Mexico, Central America and the Andean countries totalled 108,000 tonnes, and consumption in the Southern Cone region, AUGUST 2011