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Rising demand from plastics boosts global CaCO3 market
MARKETS
2013, down 7.4% from net sales of $684.9 million in the second quarter of the previous year. The company reports that the decline in quarterly sales was driven by its exit from the phosphorus flame retardants business [ADPO, July 2012], lower metals surcharges, unfavourable pricing in the bromine portfolio and lower Fine Chemistry Services volumes, partly offset by favourable volumes in the Refinery Catalysts and Brominated Flame Retardant businesses. Alongside the continued sluggishness across Europe, and weak electronics and construction markets, Albemarle, like BASF (see p. 7), noted that China’s performance was much weaker than most anticipated at the beginning of the year. Despite these negative impacts, the businesses delivered EBITDA margins of 22%, reports CEO Luke Kissam. Albemarle’s Polymer Solutions segment reported net sales of $224.3 million in the second quarter of 2013, a 9% decrease from net sales in 2Q 2012. The decline was due to the year-over-year effects of the phosphorus flame retardants business exit in 2Q 2012 and overall lower flame retardant pricing, partly offset by favourable flame retardants volumes. Segment income for Polymer Solutions was $43.7 million in 2Q 2013, a 34% decline from $65.7 million in the same quarter of 2012, driven by unfavourable pricing, manufacturing costs and foreign currency impacts, partly offset by improved sales volumes and favourable impacts from the exit from the phosphorus flame retardants business. A similar pattern was seen for the six months ended 30 June 2013, with net sales down 7.6% year on year to $439 million and segment income falling 26% to $87.5 million. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com
2013 results represented a 15% drop in net earnings attributable to the company from $40.6 million in 2Q 2012, but a 27% increase in net sales from continuing operations from the figure of $404 million the previous year. In Additive Technologies, sales decreased 2% to $73 million in 2Q 2013. Sales volumes were also down 2% compared to 2Q 2012, primarily due to a planned rationalization of a low margin product within the speciality additives product line, the company says. Sales of polymer additive products were particularly strong related to demand improvement in the European agricultural film market and general demand improvement for differentiated technologies in North American markets. Changes in the selling prices and the overall impact of exchange rates were essentially flat versus the prior year quarter. Operating earnings of $12.2 million were down versus $14.4 million in the second quarter of 2012, primarily due to increased manufacturing costs. Operating margins in this segment remain strong as the business continuously seeks opportunities to improve profitability. Looking ahead to the remainder of 2013, Cytec says that it expects demand in the USA to remain stable through the year across most of the end markets served by the Additive Technologies segment, with modest growth in differentiated polymer additive products offsetting flat demand in speciality additive products. The company continues to estimate sales for the segment in a range of $275 million to $285 million for the full year and operating earnings in a range of $39 million to $41 million. Contact: Cytec Industries Inc, Woodland Park, NJ, USA. Tel: +1 973 357 3100, Web: www.cytec.com
MARKETS Cytec’s sales improve but earnings decline in 2Q 2013
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ew Jersey-based Cytec Industries Inc announced net earnings attributable to the company for the second quarter of 2013 of US$34.6 M on net sales from continuing operations of $514 M. Earnings from continuing operations were $62.6 million, while discontinued operations posted a loss of $28.0 million. Compared to the company’s results a year earlier (adjusted for a change in pension accounting in the USA), Cytec’s 2Q
September 2013
Rising demand from plastics boosts global CaCO3 market
T
he global market for calcium carbonate (CaCO3) is projected to reach 94 million tonnes by 2018, according to a new study Calcium Carbonate – A Global Strategic Business Report (MCP-2033) published by Global Industry Analysts (GIA). The forecast growth will be driven by rising consumption in the paper and plastic industries and the growing demand for both precipitated
Additives for Polymers
9
MARKETS
and ground calcium carbonate in Asia Pacific, Latin America and the Middle East. Calcium carbonate finds extensive use as functional and commercial fillers in plastics, paper, rubber, coatings, light chemicals and architectural materials, among others. The dynamics of the global market are closely linked to trends in the paper, automotive, plastics and construction industries, which are significantly affected by cyclical fluctuations of the global economy, GIA observes. CaCO3 consumption therefore declined during the economic uncertainties of the recession years. In particular, the demand for precipitated CaCO3 (PCC) fell drastically owing to the steep decline in paper output in the USA and Europe. However, the market is expected to make steady recovery and post growth in the long run. Asia Pacific represents the largest and fastest-growing regional market for CaCO3, with the rapid progress of its plastics and paper industries expected to drive future growth. China, in particular, is expected to remain a major contributor to growth. On the other hand, the CaCO3 market in developed regions is expected to grow at a relatively moderate pace. Ground CaCO3 (GCC) represents the largest and fastest-growing product segment in the global market, GIA finds. While the demand for GCC from Asian countries is expected to be robust, North America and Europe are forecast to register lacklustre growth. GCC is commonly used as a filler in the plastics industry while in the papermaking sector, GCC continues to generate demand in both coating and filler applications. Growth in the PCC market will also be driven by the increasing number of paper mills and rising demand from the plastics sector. Asia Pacific offers huge opportunities for growth, with China’s surging domestic demand for paints and plastics in the construction industry. Increasing consumption of PCC in the paper and rubber industries is also expected to offer favourable opportunities in China. In North America and Europe, the establishment of satellite plants augurs well for the PCC market, according to GIA. The report provides a comprehensive review of market trends, issues, drivers, company profiles and strategic industry activities. It offers market estimates and projections for the major geographic markets, and detailed analysis of the GCC and PCC product segments and their end-use markets. Key players profiled in the report include Excalibar Minerals, Huber Engineered Materials, Imerys, Maruo Calcium Minerals Technologies, Mississippi Lime Company, Okutama Kogyo, Omya, Schaefer Kalk and Solvay. The 399-page report costs US$4500.
10
Additives for Polymers
Contact: Global Industry Analysts, Inc, San Jose, CA, USA. Tel: +1 408 528 9966, Web: www.strategyr.com
Ceresana forecasts dynamic growth for carbon black market
G
lobal demand for carbon black is expected to rise dynamically until 2019, according to a new market study from Ceresana Research. By 2019, market volume is expected to increase by more than 3.1 million tonnes from 2011 levels. The major share of consumption is in the production of tyres of all sorts; this segment consumed >7.8 million tonnes in 2011. Carbon black is used as a filler in tyres and numerous rubber products. In other industrial sectors such as plastics, paints, varnishes and printing inks, carbon black is used as a pigment. The automotive industry is the largest sales market for carbon black. Its development is decisive for both the tyre segment as well as the utilization of a wide range of rubber products. On average, manufacturers of carbon black have been able to profit from the sound development of the automotive market in the past eight years. Global production of passenger cars rose from 42 million units in 2003 to almost 60 million units in 2011, with utility vehicles adding a further 20 million units that year. In 2010 the global stock of all vehicles surpassed the 1 billion mark for the first time. Unsurprisingly, Asia Pacific is found to be the main driver for growth; consumption and production volumes in this region are both expected to increase by more than 4.5% per annum. China dominates the market, single-handedly consuming >30% of the total global carbon black market volume. As a result of massive expansions in capacity, this region will become a net exporter in the future. Production costs and prices of carbon black are mainly influenced by the prices for raw materials and vary greatly due to fluctuating prices for crude oil. The increase of the average global price for crude oil from US$27/barrel in 2003 to >$108/barrel in 2011 caused carbon black prices to rise by almost 130% in the same period. Pressure on margins is forecast to continue for manufacturers of carbon black. Accordingly, further consolidation among manufacturers and a localization of production in individual countries is expected, Ceresana reports. In addition to detailed analysis of the carbon black market by region/country and application area, including
September 2013
2013, down 7.4% from net sales of $684.9 million in the second quarter of the previous year. The company reports that the decline in quarterly sales was driven by its exit from the phosphorus flame retardants business [ADPO, July 2012], lower metals surcharges, unfavourable pricing in the bromine portfolio and lower Fine Chemistry Services volumes, partly offset by favourable volumes in the Refinery Catalysts and Brominated Flame Retardant businesses. Alongside the continued sluggishness across Europe, and weak electronics and construction markets, Albemarle, like BASF (see p. 7), noted that China’s performance was much weaker than most anticipated at the beginning of the year. Despite these negative impacts, the businesses delivered EBITDA margins of 22%, reports CEO Luke Kissam. Albemarle’s Polymer Solutions segment reported net sales of $224.3 million in the second quarter of 2013, a 9% decrease from net sales in 2Q 2012. The decline was due to the year-over-year effects of the phosphorus flame retardants business exit in 2Q 2012 and overall lower flame retardant pricing, partly offset by favourable flame retardants volumes. Segment income for Polymer Solutions was $43.7 million in 2Q 2013, a 34% decline from $65.7 million in the same quarter of 2012, driven by unfavourable pricing, manufacturing costs and foreign currency impacts, partly offset by improved sales volumes and favourable impacts from the exit from the phosphorus flame retardants business. A similar pattern was seen for the six months ended 30 June 2013, with net sales down 7.6% year on year to $439 million and segment income falling 26% to $87.5 million. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com
2013 results represented a 15% drop in net earnings attributable to the company from $40.6 million in 2Q 2012, but a 27% increase in net sales from continuing operations from the figure of $404 million the previous year. In Additive Technologies, sales decreased 2% to $73 million in 2Q 2013. Sales volumes were also down 2% compared to 2Q 2012, primarily due to a planned rationalization of a low margin product within the speciality additives product line, the company says. Sales of polymer additive products were particularly strong related to demand improvement in the European agricultural film market and general demand improvement for differentiated technologies in North American markets. Changes in the selling prices and the overall impact of exchange rates were essentially flat versus the prior year quarter. Operating earnings of $12.2 million were down versus $14.4 million in the second quarter of 2012, primarily due to increased manufacturing costs. Operating margins in this segment remain strong as the business continuously seeks opportunities to improve profitability. Looking ahead to the remainder of 2013, Cytec says that it expects demand in the USA to remain stable through the year across most of the end markets served by the Additive Technologies segment, with modest growth in differentiated polymer additive products offsetting flat demand in speciality additive products. The company continues to estimate sales for the segment in a range of $275 million to $285 million for the full year and operating earnings in a range of $39 million to $41 million. Contact: Cytec Industries Inc, Woodland Park, NJ, USA. Tel: +1 973 357 3100, Web: www.cytec.com
MARKETS Cytec’s sales improve but earnings decline in 2Q 2013
N
ew Jersey-based Cytec Industries Inc announced net earnings attributable to the company for the second quarter of 2013 of US$34.6 M on net sales from continuing operations of $514 M. Earnings from continuing operations were $62.6 million, while discontinued operations posted a loss of $28.0 million. Compared to the company’s results a year earlier (adjusted for a change in pension accounting in the USA), Cytec’s 2Q
September 2013
Rising demand from plastics boosts global CaCO3 market
T
he global market for calcium carbonate (CaCO3) is projected to reach 94 million tonnes by 2018, according to a new study Calcium Carbonate – A Global Strategic Business Report (MCP-2033) published by Global Industry Analysts (GIA). The forecast growth will be driven by rising consumption in the paper and plastic industries and the growing demand for both precipitated
Additives for Polymers
9
MARKETS
and ground calcium carbonate in Asia Pacific, Latin America and the Middle East. Calcium carbonate finds extensive use as functional and commercial fillers in plastics, paper, rubber, coatings, light chemicals and architectural materials, among others. The dynamics of the global market are closely linked to trends in the paper, automotive, plastics and construction industries, which are significantly affected by cyclical fluctuations of the global economy, GIA observes. CaCO3 consumption therefore declined during the economic uncertainties of the recession years. In particular, the demand for precipitated CaCO3 (PCC) fell drastically owing to the steep decline in paper output in the USA and Europe. However, the market is expected to make steady recovery and post growth in the long run. Asia Pacific represents the largest and fastest-growing regional market for CaCO3, with the rapid progress of its plastics and paper industries expected to drive future growth. China, in particular, is expected to remain a major contributor to growth. On the other hand, the CaCO3 market in developed regions is expected to grow at a relatively moderate pace. Ground CaCO3 (GCC) represents the largest and fastest-growing product segment in the global market, GIA finds. While the demand for GCC from Asian countries is expected to be robust, North America and Europe are forecast to register lacklustre growth. GCC is commonly used as a filler in the plastics industry while in the papermaking sector, GCC continues to generate demand in both coating and filler applications. Growth in the PCC market will also be driven by the increasing number of paper mills and rising demand from the plastics sector. Asia Pacific offers huge opportunities for growth, with China’s surging domestic demand for paints and plastics in the construction industry. Increasing consumption of PCC in the paper and rubber industries is also expected to offer favourable opportunities in China. In North America and Europe, the establishment of satellite plants augurs well for the PCC market, according to GIA. The report provides a comprehensive review of market trends, issues, drivers, company profiles and strategic industry activities. It offers market estimates and projections for the major geographic markets, and detailed analysis of the GCC and PCC product segments and their end-use markets. Key players profiled in the report include Excalibar Minerals, Huber Engineered Materials, Imerys, Maruo Calcium Minerals Technologies, Mississippi Lime Company, Okutama Kogyo, Omya, Schaefer Kalk and Solvay. The 399-page report costs US$4500.
10
Additives for Polymers
Contact: Global Industry Analysts, Inc, San Jose, CA, USA. Tel: +1 408 528 9966, Web: www.strategyr.com
Ceresana forecasts dynamic growth for carbon black market
G
lobal demand for carbon black is expected to rise dynamically until 2019, according to a new market study from Ceresana Research. By 2019, market volume is expected to increase by more than 3.1 million tonnes from 2011 levels. The major share of consumption is in the production of tyres of all sorts; this segment consumed >7.8 million tonnes in 2011. Carbon black is used as a filler in tyres and numerous rubber products. In other industrial sectors such as plastics, paints, varnishes and printing inks, carbon black is used as a pigment. The automotive industry is the largest sales market for carbon black. Its development is decisive for both the tyre segment as well as the utilization of a wide range of rubber products. On average, manufacturers of carbon black have been able to profit from the sound development of the automotive market in the past eight years. Global production of passenger cars rose from 42 million units in 2003 to almost 60 million units in 2011, with utility vehicles adding a further 20 million units that year. In 2010 the global stock of all vehicles surpassed the 1 billion mark for the first time. Unsurprisingly, Asia Pacific is found to be the main driver for growth; consumption and production volumes in this region are both expected to increase by more than 4.5% per annum. China dominates the market, single-handedly consuming >30% of the total global carbon black market volume. As a result of massive expansions in capacity, this region will become a net exporter in the future. Production costs and prices of carbon black are mainly influenced by the prices for raw materials and vary greatly due to fluctuating prices for crude oil. The increase of the average global price for crude oil from US$27/barrel in 2003 to >$108/barrel in 2011 caused carbon black prices to rise by almost 130% in the same period. Pressure on margins is forecast to continue for manufacturers of carbon black. Accordingly, further consolidation among manufacturers and a localization of production in individual countries is expected, Ceresana reports. In addition to detailed analysis of the carbon black market by region/country and application area, including
September 2013