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Roskill digs out the details on China's talc, kaolin, GCC & PCC, the white mineral pigments
FOCUS ON P I G M E N T S A MONTHLY REPORT FROM REG ADAMS OCTOBER 2006 In this issue
MARKETS
2-4
TiO2 price rises for Africa, Asia, Middle East & Latin America Foreign suppliers to benefit from China’s fumed silica demand growth Importers’ share of Japan’s carbon black market reduced
PLANTS
4-6
Cabot to make 200,000 tonnes/y of carbon black at Tianjin? Guangzhou TiO2 plant closed after TiC4 leak Heubach expands bismuth vanadate capacity in Germany Ishihara to raise TiO2 capacity in Singapore to 84,000 tonnes/y? Huntsman Tioxide to add a third ICON unit at Greatham Huber to reduce its US kaolin capacity by 40%
COMPANIES
6-7
BASF to work with NMT in Singapore on ZnO nanosuspensions Cathay Pigments buys Ishihara’s US magnetic iron oxides business Ferro sells plastic colorants business to private equity firm
EVENTS
PIGMENTS
8
PIGMENTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN THE PIGMENTS SECTOR ISSN 0969–6210
ROSKILL DIGS OUT THE DETAILS ON CHINA’S TALC, KAOLIN, GCC & PCC, THE WHITE MINERAL PIGMENTS Roskill Information Services (of Wimbledon, South London) has been publishing multi-client reports on the world’s minerals and metal industries for more than 30 years. Its latest world kaolin report, for instance, represents the 11th edition in this series. In recent years, Roskill consultants have carried out a number of proprietary studies on various sectors of Chinese industry, engaging researchers with bilingual Chinese and English language abilities to carry out face-to-face interviews as an important component in understanding what is really going on and in properly interpreting locally published data. In the world at large, there is a marked disparity between the demand for and the supply of accurate, comprehensive and detailed data on most sectors of China’s pigments industry. But, amalgamating the company’s human resource skills in China with the company’s massive database on white mineral pigments in an international context, Roskill was ideally placed to make a valuable contribution towards closing the information supply/demand gap by compiling the recently published “Filler Minerals in China.” (Ref 1). The report covers kaolin, ground calcium carbonate (GCC), precipitated calcium carbonate (PCC) and talc. It begins with a six-page executive summary chapter, followed by a short chapter with highlights on China’s position in the world economy. The bulk of the report (114 pages) consists of the four separate chapters devoted to each of the four
PIGMENTS
PIGMENTS
white mineral pigments. In each chapter, the locations of mineral deposits, current processing facilities and projects are identified, with maps. Data is included on resources, reserves, capacity, production, imports and exports. There are profiles on all the major producers, with detailed product specifications and information on their operations and plans for the future. Within each of these four chapters, there is a discussion of China’s domestic consumption of the four pigments in the paper, paint and plastics industries. The seventh and final chapter of the report (22 pages) provides data on the major end-use sectors, indicating growth trends and assessing the implications for China’s demand for white mineral pigments. Major end-users in the paper and plastic industries are identified and profiled. The entire publication contains 107 tables and 26 charts and maps. GCC has emerged as the most important white mineral pigment in China. In 1990, China’s production and consumption of GCC was estimated at only 200,000 tonnes. In 2005, about 5.5 M tonnes of GCC was produced in China, virtually all of which was destined for Chinese consumers – 48% for paper, 38% for plastics and 14% for paint. Although China is the world’s second largest producing country for GCC , practically none of it is exported. Roskill identifies approximately 100 GCC producers in China, the majors being: Asia Pulp & Paper (APP), Chenming Paper, Imerys, Omya,
PIGMENTS
PIGMENTS
FOCUS ShenXing Chemical and Sun Paper. Most large paper mills now have satellite GCC plants either operated captively or by one of the multinational suppliers, several of which are scheduled for capacity increases. In addition, the rapid expansion of GCC demand in the Chinese paper industry has attracted a number of new companies – both foreign and local – to install processing facilities. Chinese customers prefer high quality GCC that can be used as supplied, without the need for flotation or magnetic beneficiation. However, high quality marble resources are finite and many marble mines are already forced to carry out underground mining operations, rather than open-pit operations, in order to minimise the environmental impact on the countryside. PCC – often referred to in China as “light calcium carbonate” – has been used by Chinese papermakers for more than 40 years. It was the most widely used carbonate filler/pigment in China prior to 1990, but growth in PCC consumption has been outpaced by GCC consumption since then. The majority of PCC used by Chinese papermakers comes from satellite plants that use a manufacturing method that is similar to the “carbonation” process. Mineral Technologies Inc (MTI), the world’s leading supplier, has a joint venture with APP, operating PCC plants at the Dagang and Suzhou paper mills (both in Jiangsu province). Other prominent producers include: Guangping Chemical Industrial; Jiawei Chemical Industrial; Jingxing County Calcium & Magnesium Industry General; and Zhejiang Linghua Chemicals. China’s total production and consumption of PCC now stands at about 2.9 M tonnes/y. China’s kaolin industry is mainly based on hydrous kaolin deposits and on calcined kaolin, derived from hard kaolin or flint clays. In 2005, China produced 2 M tonnes of hydrous kaolin plus 450,000 tonnes of calcined kaolin. About one-half of the country’s hydrous kaolin output was exported in 2005, mainly to ceramics manufacturers in other Asian markets. Kaolin from the Longyan district (in Fujian province) is especially popular with overseas porcelain manufacturers, because of
2
ON
PIGMENTS
its low iron and titania content. Kaolin from the Maoming district (in Guangdong province) is mainly used for paper coating applications. However, domestic suppliers have been unable to satisfy all Chinese papermakers’ requirements for paper coating grades and China has become a substantial importer of hydrous kaolin, notably from Brazil and the US. In 2005, imports were 243,000 tonnes and they are expected to increase by more than 30% this year. There is an urgent need for new Chinese resources of kaolin to be developed, but it seems that none of those identified so far can match the quality of imported material. The production of calcined kaolin in China is based on hard kaolin, also known as “flint clays”, normally associated with deposits of coal. The kaolinite contained in these deposits is often very pure and amenable to calcining. China is now second only to the US as the largest producing country for calcined kaolin. China’s output was 450,000 tonnes in 2005, contributed by about 55 separate operations, many of them in the northwestern provinces (Inner Mongolia, Shanxi and others). China is the world’s largest producer and exporter of talc raw materials. Nearly 400,000 tonnes/y of talc lump and 250,000 tonnes/y of talc powder are produced in China. Most of the country’s talc comes from mines in Liaoning, Shandong and Guangxi provinces. More than 70% of the country’s output is classified as medium to low quality. Over 80% of the high-quality talc output is exported. Total Chinese exports of talc reached 560,000 tonnes in 2005, with the US, Japan, Italy and the Netherlands being the most important recipients. Average unit export values were $164 per tonne for talc powder and $98 for talc in lump and other forms. Chinese suppliers must pay for a Government licence to export talc and licenses are obtained by negotiation tender or by open tender. The actual cost of an export licence varies from one year to the next and this naturally affects the trend of fob talc export prices. In 2005, the export licence cost represented about 17% of the overall fob export price for highquality talc and an even higher percentage for lower grades. The Government has also instituted a
quota system for talc exports and Roskill’s report gives a detailed list of the 2006 export quota volumes assigned to 36 different companies, accounting for 315,480 tonnes in total. China’s own consumption of talc reached 1.24 M tonnes in 2005, of which 49% was accounted for by the paper industry; 24% by the paint industry; 8% by the ceramics industry; 7% by the plastics industry; 2% by the cosmetics industry; 1% by the rubber industry; and 9% by other industrial sectors. The Chinese economy achieved year-on-year growth rates of between 7% and 11% in every year onwards from 1995. In terms of gross domestic product (GDP), China now ranks seventh in the world and, with growth forecast at 7-8% per annum over the next decade, it is expected to move further up the rankings. The 2008 Olympic Games in Beijing and the 2010 Shanghai World Expo will help to stimulate growth in the country’s paper, paint and plastics industries. In turn, this will stimulate growth in China’s consumption of white mineral pigments. Reg Adams
1) “Filler Minerals in China” (1st edition) is available for £2200 or $4400 or €3850 from Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB. Tel: +44 20 8944 0066. Fax: +44 20 8947 9568. E-mail: [email protected]. Website: http://www.roskill.co.uk
MARKETS TiO2 price rises posted for Africa, the Middle East, Asia and Latin America After a lull for most market regions in 1Q 2006, the major multinationals posted price increases for European and North American customers in June and July. (See ‘Focus on Pigments’, Jul 2006, 2). A new wave of price increase announcements started at the beginning of August, with DuPont posting increases of $100 per tonne for all customers in Africa and the Middle East (effective as from 1 August) and for all customers in the Asia/Pacific region (effective as from 15 August). DuPont then posted an increase of $150 per tonne for all customers in Latin America, including
OCTOBER 2006
MARKETS
2-4
TiO2 price rises for Africa, Asia, Middle East & Latin America Foreign suppliers to benefit from China’s fumed silica demand growth Importers’ share of Japan’s carbon black market reduced
PLANTS
4-6
Cabot to make 200,000 tonnes/y of carbon black at Tianjin? Guangzhou TiO2 plant closed after TiC4 leak Heubach expands bismuth vanadate capacity in Germany Ishihara to raise TiO2 capacity in Singapore to 84,000 tonnes/y? Huntsman Tioxide to add a third ICON unit at Greatham Huber to reduce its US kaolin capacity by 40%
COMPANIES
6-7
BASF to work with NMT in Singapore on ZnO nanosuspensions Cathay Pigments buys Ishihara’s US magnetic iron oxides business Ferro sells plastic colorants business to private equity firm
EVENTS
PIGMENTS
8
PIGMENTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN THE PIGMENTS SECTOR ISSN 0969–6210
ROSKILL DIGS OUT THE DETAILS ON CHINA’S TALC, KAOLIN, GCC & PCC, THE WHITE MINERAL PIGMENTS Roskill Information Services (of Wimbledon, South London) has been publishing multi-client reports on the world’s minerals and metal industries for more than 30 years. Its latest world kaolin report, for instance, represents the 11th edition in this series. In recent years, Roskill consultants have carried out a number of proprietary studies on various sectors of Chinese industry, engaging researchers with bilingual Chinese and English language abilities to carry out face-to-face interviews as an important component in understanding what is really going on and in properly interpreting locally published data. In the world at large, there is a marked disparity between the demand for and the supply of accurate, comprehensive and detailed data on most sectors of China’s pigments industry. But, amalgamating the company’s human resource skills in China with the company’s massive database on white mineral pigments in an international context, Roskill was ideally placed to make a valuable contribution towards closing the information supply/demand gap by compiling the recently published “Filler Minerals in China.” (Ref 1). The report covers kaolin, ground calcium carbonate (GCC), precipitated calcium carbonate (PCC) and talc. It begins with a six-page executive summary chapter, followed by a short chapter with highlights on China’s position in the world economy. The bulk of the report (114 pages) consists of the four separate chapters devoted to each of the four
PIGMENTS
PIGMENTS
white mineral pigments. In each chapter, the locations of mineral deposits, current processing facilities and projects are identified, with maps. Data is included on resources, reserves, capacity, production, imports and exports. There are profiles on all the major producers, with detailed product specifications and information on their operations and plans for the future. Within each of these four chapters, there is a discussion of China’s domestic consumption of the four pigments in the paper, paint and plastics industries. The seventh and final chapter of the report (22 pages) provides data on the major end-use sectors, indicating growth trends and assessing the implications for China’s demand for white mineral pigments. Major end-users in the paper and plastic industries are identified and profiled. The entire publication contains 107 tables and 26 charts and maps. GCC has emerged as the most important white mineral pigment in China. In 1990, China’s production and consumption of GCC was estimated at only 200,000 tonnes. In 2005, about 5.5 M tonnes of GCC was produced in China, virtually all of which was destined for Chinese consumers – 48% for paper, 38% for plastics and 14% for paint. Although China is the world’s second largest producing country for GCC , practically none of it is exported. Roskill identifies approximately 100 GCC producers in China, the majors being: Asia Pulp & Paper (APP), Chenming Paper, Imerys, Omya,
PIGMENTS
PIGMENTS
FOCUS ShenXing Chemical and Sun Paper. Most large paper mills now have satellite GCC plants either operated captively or by one of the multinational suppliers, several of which are scheduled for capacity increases. In addition, the rapid expansion of GCC demand in the Chinese paper industry has attracted a number of new companies – both foreign and local – to install processing facilities. Chinese customers prefer high quality GCC that can be used as supplied, without the need for flotation or magnetic beneficiation. However, high quality marble resources are finite and many marble mines are already forced to carry out underground mining operations, rather than open-pit operations, in order to minimise the environmental impact on the countryside. PCC – often referred to in China as “light calcium carbonate” – has been used by Chinese papermakers for more than 40 years. It was the most widely used carbonate filler/pigment in China prior to 1990, but growth in PCC consumption has been outpaced by GCC consumption since then. The majority of PCC used by Chinese papermakers comes from satellite plants that use a manufacturing method that is similar to the “carbonation” process. Mineral Technologies Inc (MTI), the world’s leading supplier, has a joint venture with APP, operating PCC plants at the Dagang and Suzhou paper mills (both in Jiangsu province). Other prominent producers include: Guangping Chemical Industrial; Jiawei Chemical Industrial; Jingxing County Calcium & Magnesium Industry General; and Zhejiang Linghua Chemicals. China’s total production and consumption of PCC now stands at about 2.9 M tonnes/y. China’s kaolin industry is mainly based on hydrous kaolin deposits and on calcined kaolin, derived from hard kaolin or flint clays. In 2005, China produced 2 M tonnes of hydrous kaolin plus 450,000 tonnes of calcined kaolin. About one-half of the country’s hydrous kaolin output was exported in 2005, mainly to ceramics manufacturers in other Asian markets. Kaolin from the Longyan district (in Fujian province) is especially popular with overseas porcelain manufacturers, because of
2
ON
PIGMENTS
its low iron and titania content. Kaolin from the Maoming district (in Guangdong province) is mainly used for paper coating applications. However, domestic suppliers have been unable to satisfy all Chinese papermakers’ requirements for paper coating grades and China has become a substantial importer of hydrous kaolin, notably from Brazil and the US. In 2005, imports were 243,000 tonnes and they are expected to increase by more than 30% this year. There is an urgent need for new Chinese resources of kaolin to be developed, but it seems that none of those identified so far can match the quality of imported material. The production of calcined kaolin in China is based on hard kaolin, also known as “flint clays”, normally associated with deposits of coal. The kaolinite contained in these deposits is often very pure and amenable to calcining. China is now second only to the US as the largest producing country for calcined kaolin. China’s output was 450,000 tonnes in 2005, contributed by about 55 separate operations, many of them in the northwestern provinces (Inner Mongolia, Shanxi and others). China is the world’s largest producer and exporter of talc raw materials. Nearly 400,000 tonnes/y of talc lump and 250,000 tonnes/y of talc powder are produced in China. Most of the country’s talc comes from mines in Liaoning, Shandong and Guangxi provinces. More than 70% of the country’s output is classified as medium to low quality. Over 80% of the high-quality talc output is exported. Total Chinese exports of talc reached 560,000 tonnes in 2005, with the US, Japan, Italy and the Netherlands being the most important recipients. Average unit export values were $164 per tonne for talc powder and $98 for talc in lump and other forms. Chinese suppliers must pay for a Government licence to export talc and licenses are obtained by negotiation tender or by open tender. The actual cost of an export licence varies from one year to the next and this naturally affects the trend of fob talc export prices. In 2005, the export licence cost represented about 17% of the overall fob export price for highquality talc and an even higher percentage for lower grades. The Government has also instituted a
quota system for talc exports and Roskill’s report gives a detailed list of the 2006 export quota volumes assigned to 36 different companies, accounting for 315,480 tonnes in total. China’s own consumption of talc reached 1.24 M tonnes in 2005, of which 49% was accounted for by the paper industry; 24% by the paint industry; 8% by the ceramics industry; 7% by the plastics industry; 2% by the cosmetics industry; 1% by the rubber industry; and 9% by other industrial sectors. The Chinese economy achieved year-on-year growth rates of between 7% and 11% in every year onwards from 1995. In terms of gross domestic product (GDP), China now ranks seventh in the world and, with growth forecast at 7-8% per annum over the next decade, it is expected to move further up the rankings. The 2008 Olympic Games in Beijing and the 2010 Shanghai World Expo will help to stimulate growth in the country’s paper, paint and plastics industries. In turn, this will stimulate growth in China’s consumption of white mineral pigments. Reg Adams
1) “Filler Minerals in China” (1st edition) is available for £2200 or $4400 or €3850 from Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB. Tel: +44 20 8944 0066. Fax: +44 20 8947 9568. E-mail: [email protected]. Website: http://www.roskill.co.uk
MARKETS TiO2 price rises posted for Africa, the Middle East, Asia and Latin America After a lull for most market regions in 1Q 2006, the major multinationals posted price increases for European and North American customers in June and July. (See ‘Focus on Pigments’, Jul 2006, 2). A new wave of price increase announcements started at the beginning of August, with DuPont posting increases of $100 per tonne for all customers in Africa and the Middle East (effective as from 1 August) and for all customers in the Asia/Pacific region (effective as from 15 August). DuPont then posted an increase of $150 per tonne for all customers in Latin America, including
OCTOBER 2006