- Email: [email protected]
fillers demand growing at 2.5% per annum
FOCUS ON P I G M E N T S A MONTHLY REPORT FROM REG ADAMS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN THE PIGMENTS SECTOR ISSN 0969–6210
JANUARY 2004 In this issue
MARKETS
2-5
Kaolin & CaCO3 prices raised Carbon black demand up 3%, while prices increase 30% Plastics masterbatch in Europe & North America US alleges dumping of carbazole violet from India & China
PLANTS
5-7
Imerys expands calcium carbonate operations in Brazil Ishihara plans more TiO2 capacity in Japan, Singapore & elsewhere in Asia Kaolin from Inner Mongolia BASF to increase output of Paliocrom pigments Degussa shuts carbon black lines & opens nano-ZnO plant Choksi to double phthalo blue capacity
EVENTS
PIGMENTS
8
PIGMENTS
ROSKILL SEES BARYTES PIGMENTS/FILLERS DEMAND GROWING AT 2.5% PER ANNUM Barytes (essentially naturally barium sulfate) usually occurs in opaque crystalline veins of hydrothermal origin, often associated with lead/zinc minerals. Crushed and ground barytes has long been used as a pigment/filler in the manufacture of paint. Although superseded to a large extent by other materials, world consumption of barytes by the paint industry is around 350,000 tonnes/y and it is forecast to rise at an average rate of 2.5% per annum over the next three years. A good cream-floated barytes typically contains at least 99% BaSO4, with small amounts of silica, iron oxide and alumina. Oil absorption is normally 8-10% and the specific gravity lies within the range 4.50-4.75. In certain markets, where paint used to be sold by weight rather than by volume, barytes was one of the fillers of preference for adding weight. Barium sulfate shows considerable opacity in water, though it is more or less insoluble and settles very quickly. Barium sulfate is more or less transparent in oil. Ground barytes shows a distinct lack of hiding power, though for certain applications this is seen as an advantage because it does not detract from the tint of coloured pigments. Barium also features in the pigments industry as blanc-fixe and as lithopone. Blanc-fixe (precipitated barium sulfate) is finer and softer than natural ground barytes, with a specific gravity of 4.33-4.34. Lithopone is a calcined co-precipitate of barium
PIGMENTS
PIGMENTS
sulfate and zinc sulfide, with the zinc sulfide content being 30%, 40% or 60%, according to product specification. For making lithopone, barytes is converted to barium sulfide by calcining with coke or pitch and barium sulfide liquor is then mixed with zinc sulfate liquor. Based on its extensive indigenous resources of barytes and an array of small-scale production facilities, China became the most important country for lithopone manufacture during the 1970s and China’s output increased to about 200,000 tonnes/y during the 1990s. Sachtleben had long been the world’s leading producer of lithopone, with a 100,000 tonnes/y plant at Duisburg-Homberg. However, faced with intensifying competition from Chinese suppliers, Sachtleben decided to close its Homberg lithopone plant and to serve its customers instead with lithopone from a joint venture operation in southern China. Guangzhou Huali – Sachtleben’s local partner – was already producing about 40,000 tonnes/y of lithopone in 1994. The joint venture – owned 60% by Guangzhou Huali and 40% by Sachtleben – built a new plant, which came on-stream in 1997, with an initial capacity of 50,000 tonnes/y. This is now the largest lithopone plant in the world. There are also smaller plants elsewhere in China and in Russia, Egypt, Morocco, Tunisia and India. Roskill Information Services (of Wimbledon) recently published the
PIGMENTS
PIGMENTS
FOCUS ninth edition of its multiclient report on the world barytes industry (ref 1). It notes that world barytes production was 6.3 M tonnes in 2002, of which just over 50% was accounted for by China. In 1990, China accounted for only 30% of world barytes production, so it has clearly been expanding its industry much faster than other countries. The United States now accounts for about 10% of world production and India for about 6%. Drilling fluids and muds for the oil and gas industry represent by far the most important end-use sector for barytes nowadays. The oil/gas sector accounts for 85% of world barytes consumption. On a geographical analysis, the US is the largest consuming country, accounting for 40% of world barytes consumption. The dominance of the oil/gas sector as a barytes consumer is even more marked in the US, accounting for about 95% of national consumption. Although the US is still a major producer of barytes, the majority of its requirements are imported. For barytes used by the oil/gas industry, the key criteria are high and consistent specific gravity. Historically, prices of lump barytes from China, India or Morocco have been in the range $40-55 per tonne, cif US Gulf Coast. Roskill states: “The price of drilling-grade barytes depends primarily on demand from the oil and gas exploration industry and on the price of crude oil. The oil price (late 2003) is currently $25-30 per barrel, but in the longer term there could be a glut, which would force crude oil prices down. This would reduce barytes demand. However, experience shows that many other factors, such as the severity of the Northern Hemisphere winter and political conflict in producing countries, could change this picture. Environmental concerns in offshore drilling will also have an impact on future barytes prices, as quality demands become more stringent. Barytes that is co-produced during base metal mining/flotation operations may become increasingly difficult to market, whereas metal-free material will be in greater demand. This should push up average barytes prices. Hydrocarbons (oil and natural gas) are expected to increase their share of total global energy requirements from 62% in 2000 to 67% in 2020 and
2
ON
PIGMENTS
this will increase the demand for drilling-grade barytes. Barium chemicals manufacture currently accounts for an estimated 10% of barytes consumption worldwide. Barium carbonate is by far the most important of the barium chemicals and about 45% of world barum carbonate consumption is used in the manufacture of glass for television and computer screens. World demand is expected to rise by about 10% in 2003. The third most important market for barytes is in pigment/filler applications, accounting for 5% of world consumption. The market for barytes in these applications is expected to grow at about 2.5% per annum between now and 2006.” Hence by 2006, world consumption of barytes for barium chemicals may well exceed 1 M tonnes/y, while world consumption of barytes for pigments/fillers will be approaching 400,000 tonnes/y. Reg Adams
1) “The Economics of Barytes” (9th edition) is available for £1200 or $2400 or €2100 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]
MARKETS Kaolin price increases posted by major suppliers The high cost of energy – plus rises in other costs – have been cited as the main factors behind the latest wave of kaolin price increases. Imerys was the first to post kaolin price increases of around 5%, effective 1 January 2004. Huber posted an increase in prices for kaolin grades sold to North American papermakers of 3-6%, effective 1 January 2004. Engelhard posted price increases for speciality kaolin-based and mica-based pigments of at least 5%, effective 15 January 2004. In Europe, Imerys has announced price increases of 3-10% for its kaolin and ground calcium carbonate (GCC) products, effective 1 January 2004. The price increases are different for different grades, but in all cases Imerys claims that price increases are necessary to help defray increases in
social, energy and transport costs at the company’s European locations. PPCJ, Polymers, Paint, Colour Journal, Nov 2003, 193 (4470), 8 & European Chemical News, 24 Nov 2003, 79 (2078), 10 & Chemical Week, 10 Dec 2003, 165 (44)
MTI raises GCC prices Following a similar move by Imerys, Minerals Technologies Inc has announced a 5% increase in its North American prices for ground calcium carbonate, the increase being scheduled to come into effect on 1 January 2004. Prices for GCC are currently reported as $65-70 per s.ton for coarse/medium grades; $95-105 per s.ton for medium/fine grades; and $230-280 per s.ton for fine grades. Papermakers generally prefer the fine GCC grades and during 2003 demand has been quite strong. Overall, the North American markets for all GCC grades are generally well balanced, though demand often exceeds supply for fine-ground and surface-treated GCCs and high-brightness granular products during the peak seasonal months. Press release from: Minerals Technologies Inc, The Chrysler Building, 405 Lexington Avenue, New York, NY 10174-1901, USA (18 Nov 2003) & Chemical Market Reporter, 8 Dec 2003 (Website: http://www.chemicalmarketreporter.com)
World carbon black demand up 3%, while prices jump 30% to contain higher costs for oil & gas Towards the end of last year, many of the leading chemical industry publications compiled reviews of the global carbon black industry, supported by data compiled by Notch Consulting (of Amherst, MA). World carbon black production was estimated at 7.8 M tonnes for full-year 2003, of which NAFTA (North America, including Mexico) accounted for 25%, the EU for 16%, Central and Eastern Europe for 11%, China for 12%, Japan for 10%, the rest of Asia for 18% and the rest of the world (notably the Middle East, Africa and Australia) for 8%. Global carbon black capacity at the end of 2003 was estimated at 8.94 M tonnes/y – an increase of 180,000 tonnes/y on the end-2001 figure. Throughout 2003, average capacity utilisation at the world’s carbon black plants was close to 90%.
JANUARY 2004
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN THE PIGMENTS SECTOR ISSN 0969–6210
JANUARY 2004 In this issue
MARKETS
2-5
Kaolin & CaCO3 prices raised Carbon black demand up 3%, while prices increase 30% Plastics masterbatch in Europe & North America US alleges dumping of carbazole violet from India & China
PLANTS
5-7
Imerys expands calcium carbonate operations in Brazil Ishihara plans more TiO2 capacity in Japan, Singapore & elsewhere in Asia Kaolin from Inner Mongolia BASF to increase output of Paliocrom pigments Degussa shuts carbon black lines & opens nano-ZnO plant Choksi to double phthalo blue capacity
EVENTS
PIGMENTS
8
PIGMENTS
ROSKILL SEES BARYTES PIGMENTS/FILLERS DEMAND GROWING AT 2.5% PER ANNUM Barytes (essentially naturally barium sulfate) usually occurs in opaque crystalline veins of hydrothermal origin, often associated with lead/zinc minerals. Crushed and ground barytes has long been used as a pigment/filler in the manufacture of paint. Although superseded to a large extent by other materials, world consumption of barytes by the paint industry is around 350,000 tonnes/y and it is forecast to rise at an average rate of 2.5% per annum over the next three years. A good cream-floated barytes typically contains at least 99% BaSO4, with small amounts of silica, iron oxide and alumina. Oil absorption is normally 8-10% and the specific gravity lies within the range 4.50-4.75. In certain markets, where paint used to be sold by weight rather than by volume, barytes was one of the fillers of preference for adding weight. Barium sulfate shows considerable opacity in water, though it is more or less insoluble and settles very quickly. Barium sulfate is more or less transparent in oil. Ground barytes shows a distinct lack of hiding power, though for certain applications this is seen as an advantage because it does not detract from the tint of coloured pigments. Barium also features in the pigments industry as blanc-fixe and as lithopone. Blanc-fixe (precipitated barium sulfate) is finer and softer than natural ground barytes, with a specific gravity of 4.33-4.34. Lithopone is a calcined co-precipitate of barium
PIGMENTS
PIGMENTS
sulfate and zinc sulfide, with the zinc sulfide content being 30%, 40% or 60%, according to product specification. For making lithopone, barytes is converted to barium sulfide by calcining with coke or pitch and barium sulfide liquor is then mixed with zinc sulfate liquor. Based on its extensive indigenous resources of barytes and an array of small-scale production facilities, China became the most important country for lithopone manufacture during the 1970s and China’s output increased to about 200,000 tonnes/y during the 1990s. Sachtleben had long been the world’s leading producer of lithopone, with a 100,000 tonnes/y plant at Duisburg-Homberg. However, faced with intensifying competition from Chinese suppliers, Sachtleben decided to close its Homberg lithopone plant and to serve its customers instead with lithopone from a joint venture operation in southern China. Guangzhou Huali – Sachtleben’s local partner – was already producing about 40,000 tonnes/y of lithopone in 1994. The joint venture – owned 60% by Guangzhou Huali and 40% by Sachtleben – built a new plant, which came on-stream in 1997, with an initial capacity of 50,000 tonnes/y. This is now the largest lithopone plant in the world. There are also smaller plants elsewhere in China and in Russia, Egypt, Morocco, Tunisia and India. Roskill Information Services (of Wimbledon) recently published the
PIGMENTS
PIGMENTS
FOCUS ninth edition of its multiclient report on the world barytes industry (ref 1). It notes that world barytes production was 6.3 M tonnes in 2002, of which just over 50% was accounted for by China. In 1990, China accounted for only 30% of world barytes production, so it has clearly been expanding its industry much faster than other countries. The United States now accounts for about 10% of world production and India for about 6%. Drilling fluids and muds for the oil and gas industry represent by far the most important end-use sector for barytes nowadays. The oil/gas sector accounts for 85% of world barytes consumption. On a geographical analysis, the US is the largest consuming country, accounting for 40% of world barytes consumption. The dominance of the oil/gas sector as a barytes consumer is even more marked in the US, accounting for about 95% of national consumption. Although the US is still a major producer of barytes, the majority of its requirements are imported. For barytes used by the oil/gas industry, the key criteria are high and consistent specific gravity. Historically, prices of lump barytes from China, India or Morocco have been in the range $40-55 per tonne, cif US Gulf Coast. Roskill states: “The price of drilling-grade barytes depends primarily on demand from the oil and gas exploration industry and on the price of crude oil. The oil price (late 2003) is currently $25-30 per barrel, but in the longer term there could be a glut, which would force crude oil prices down. This would reduce barytes demand. However, experience shows that many other factors, such as the severity of the Northern Hemisphere winter and political conflict in producing countries, could change this picture. Environmental concerns in offshore drilling will also have an impact on future barytes prices, as quality demands become more stringent. Barytes that is co-produced during base metal mining/flotation operations may become increasingly difficult to market, whereas metal-free material will be in greater demand. This should push up average barytes prices. Hydrocarbons (oil and natural gas) are expected to increase their share of total global energy requirements from 62% in 2000 to 67% in 2020 and
2
ON
PIGMENTS
this will increase the demand for drilling-grade barytes. Barium chemicals manufacture currently accounts for an estimated 10% of barytes consumption worldwide. Barium carbonate is by far the most important of the barium chemicals and about 45% of world barum carbonate consumption is used in the manufacture of glass for television and computer screens. World demand is expected to rise by about 10% in 2003. The third most important market for barytes is in pigment/filler applications, accounting for 5% of world consumption. The market for barytes in these applications is expected to grow at about 2.5% per annum between now and 2006.” Hence by 2006, world consumption of barytes for barium chemicals may well exceed 1 M tonnes/y, while world consumption of barytes for pigments/fillers will be approaching 400,000 tonnes/y. Reg Adams
1) “The Economics of Barytes” (9th edition) is available for £1200 or $2400 or €2100 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]
MARKETS Kaolin price increases posted by major suppliers The high cost of energy – plus rises in other costs – have been cited as the main factors behind the latest wave of kaolin price increases. Imerys was the first to post kaolin price increases of around 5%, effective 1 January 2004. Huber posted an increase in prices for kaolin grades sold to North American papermakers of 3-6%, effective 1 January 2004. Engelhard posted price increases for speciality kaolin-based and mica-based pigments of at least 5%, effective 15 January 2004. In Europe, Imerys has announced price increases of 3-10% for its kaolin and ground calcium carbonate (GCC) products, effective 1 January 2004. The price increases are different for different grades, but in all cases Imerys claims that price increases are necessary to help defray increases in
social, energy and transport costs at the company’s European locations. PPCJ, Polymers, Paint, Colour Journal, Nov 2003, 193 (4470), 8 & European Chemical News, 24 Nov 2003, 79 (2078), 10 & Chemical Week, 10 Dec 2003, 165 (44)
MTI raises GCC prices Following a similar move by Imerys, Minerals Technologies Inc has announced a 5% increase in its North American prices for ground calcium carbonate, the increase being scheduled to come into effect on 1 January 2004. Prices for GCC are currently reported as $65-70 per s.ton for coarse/medium grades; $95-105 per s.ton for medium/fine grades; and $230-280 per s.ton for fine grades. Papermakers generally prefer the fine GCC grades and during 2003 demand has been quite strong. Overall, the North American markets for all GCC grades are generally well balanced, though demand often exceeds supply for fine-ground and surface-treated GCCs and high-brightness granular products during the peak seasonal months. Press release from: Minerals Technologies Inc, The Chrysler Building, 405 Lexington Avenue, New York, NY 10174-1901, USA (18 Nov 2003) & Chemical Market Reporter, 8 Dec 2003 (Website: http://www.chemicalmarketreporter.com)
World carbon black demand up 3%, while prices jump 30% to contain higher costs for oil & gas Towards the end of last year, many of the leading chemical industry publications compiled reviews of the global carbon black industry, supported by data compiled by Notch Consulting (of Amherst, MA). World carbon black production was estimated at 7.8 M tonnes for full-year 2003, of which NAFTA (North America, including Mexico) accounted for 25%, the EU for 16%, Central and Eastern Europe for 11%, China for 12%, Japan for 10%, the rest of Asia for 18% and the rest of the world (notably the Middle East, Africa and Australia) for 8%. Global carbon black capacity at the end of 2003 was estimated at 8.94 M tonnes/y – an increase of 180,000 tonnes/y on the end-2001 figure. Throughout 2003, average capacity utilisation at the world’s carbon black plants was close to 90%.
JANUARY 2004