Pigments market panel discussion

Coatings World, Jan, 2009 by Tim Wright

McBride, Heucotech: Heubach will continue to provide both quality products and technical service at a high level that creates value for our customers. Our portfolio is well balanced with innovative technology in organic and inorganic pigments, and preparations that have been carefully consolidated to keep only the products with the best offerings for the markets we service at competitive pricing. We believe our approach will differentiate Heubach from the competition and enhance our market position.

Yazdani, Sun Chemical: A number of trends and challenges are affecting the pricing and supply issues in the pigments market. First, the price of raw materials increased at an unprecedented rapid pace in 2008. Although some of the pressures have eased, it will take some time to recoup the magnitude of the increases that pigment suppliers absorbed in 2008. At Sun Chemical, we're working to control our own costs closely with our supply chain partners and to improve our internal operations. These efforts have helped offset some of these rising raw material costs. However, the increases seen in many areas have outpaced our ability to offset them. As a result, we have had to pass some of these costs on in the way of price increases to our customers. We will continue to invest in those areas that provide our customers with innovative products and services, allowing them to be more competitive and present the best value propositions in the market.

Whiston, Toyo: 2009 is going to be very tough. Toyo Ink Mfg America will be monitoring inventory and operating expenses very carefully in line with demand.

CW: How is the down economy affecting the demand and production of pigments in emerging markets? How would you describe the pigment markets in these emerging areas (China, India, etc.) and will we continue to see this shift to Asia from the developed world moving forward?

Chevrier, BASF: Emerging market producers will continue to play a role in the pigment market. Their challenge is to move beyond being a low-cost supplier and transition into being an innovative solutions provider.

Corujo, Ciba: Demand in emerging markets has slowed but still outpaces most of the developed world markets. As mentioned before in addition to demand, currency effects also come into play. Currency effects can determine how favorable a particular source point will or will not be for a manufacturer. A global network of supply and the ability to make the same quality of product regardless of source point is critical for a pigment supplier to remain competitive. Likewise, understanding the type of color preferences in each region is essential.

Orlowski, Clariant: The effect of the global downturn is also recognized in the emerging markets. The reduced product demand is causing manufactures to either reduce or shut down production facilities. Expecting this trend to continue Clariant has established ventures in the Asian region.

McBride, Heucotech: The shift from production of pigments and intermediates to emerging markets such as China and India has obviously been significant over the past several years. With recent disruptions of supply coming from these emerging market countries, there are now longer-term concerns over continuity of supply. Heubach is expanding both our sourcing capacities as well as production of key raw materials to ensure better supply into the future.