CEH Marketing Reports - Pigments

May 2001 Pigments575.0000 A

2001 by the Chemical Economics Handbook—SRI International

CEH Marketing Research Report

PIGMENTS

ByRaymond Will

withAkihiro Kishi

CEH Marketing Research Reports provide comprehensive analysis, historical data andforecasts pertaining to the international competitive market environment for chemicalproducts. Detailed supply and demand data are developed for the United States,Western Europe and Japan with the cooperation of chemical producers and consumersworldwide.

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● CEH Inquiry Service—SRI Consulting researchers are available to answer yourquestions.

U.S.A.—Telephone: 650/859-3900 Fax: 650/859-2182Zürich—Telephone: 411/283-6333 Fax: 411/283-6320Tokyo—Telephone: 813/5251-1741 Fax: 813/5251-1754

May 2001 PIGMENTS Pigments575.0000 B


TABLE OF CONTENTS

Summary .................................................................................................................................................. 7World Market Size............................................................................................................................... 7World Supply/Demand ........................................................................................................................ 11

Leading Producers ........................................................................................................................... 11Inorganic Pigments .......................................................................................................................... 11Organic Pigments............................................................................................................................. 12Production........................................................................................................................................ 13Consumption.................................................................................................................................... 14

World Pigments Business Development ............................................................................................. 16Demand............................................................................................................................................ 16Supply .............................................................................................................................................. 17Market Participants .......................................................................................................................... 17Product Range.................................................................................................................................. 18

Introduction.............................................................................................................................................. 19

Environmental issues ............................................................................................................................... 30

White Pigments........................................................................................................................................ 32

Black Pigments ........................................................................................................................................ 33

Inorganic Color Pigments ........................................................................................................................ 33Description........................................................................................................................................... 33

Iron Oxide Pigments ........................................................................................................................ 33Natural Iron Oxide Pigments ....................................................................................................... 34Synthetic Iron Oxide Pigments.................................................................................................... 35

Chrome Pigments............................................................................................................................. 35Complex Inorganic Pigments .......................................................................................................... 37Ultramarine Pigments ...................................................................................................................... 38Iron Blue Pigments .......................................................................................................................... 38Cadmium Pigments.......................................................................................................................... 38Bismuth Vanadate Pigments............................................................................................................ 39Rare Earth Sulfide Pigments............................................................................................................ 39Manganese Violet Pigments ............................................................................................................ 40

Manufacturing Processes ..................................................................................................................... 40Iron Oxide Pigments ........................................................................................................................ 40

Natural Iron Oxide Pigments ....................................................................................................... 40Synthetic Iron Oxide Pigments.................................................................................................... 40

Chrome Pigments............................................................................................................................. 43Complex Inorganic Pigments .......................................................................................................... 44Cadmium Pigments.......................................................................................................................... 44

Supply and Demand by Region ........................................................................................................... 45United States.................................................................................................................................... 45

Iron Oxide Pigments .................................................................................................................... 45Producing companies............................................................................................................... 45Salient statistics........................................................................................................................ 48Consumption............................................................................................................................ 54

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TABLE OF CONTENTS (continued)

Price ......................................................................................................................................... 62Trade ........................................................................................................................................ 63

Chrome Pigments......................................................................................................................... 66Producing companies............................................................................................................... 66Salient statistics........................................................................................................................ 67Consumption............................................................................................................................ 69Price ......................................................................................................................................... 74Trade ........................................................................................................................................ 74

Complex Inorganic Pigments ...................................................................................................... 76Producing companies............................................................................................................... 76Production................................................................................................................................ 77Consumption............................................................................................................................ 78Price ......................................................................................................................................... 80Trade ........................................................................................................................................ 81

Cadmium Pigments...................................................................................................................... 81Producing companies............................................................................................................... 81Salient statistics........................................................................................................................ 81Price ......................................................................................................................................... 85Trade ........................................................................................................................................ 86

Other Inorganic Pigments ............................................................................................................ 86Canada ............................................................................................................................................. 86

Producing Companies .................................................................................................................. 86Consumption................................................................................................................................ 86Trade ............................................................................................................................................ 86

Mexico ............................................................................................................................................. 87Producing Companies .................................................................................................................. 87

Iron oxide pigments ................................................................................................................. 87Chrome pigments..................................................................................................................... 87Complex inorganic pigments ................................................................................................... 88

Production.................................................................................................................................... 88Consumption................................................................................................................................ 88Trade ............................................................................................................................................ 89

South America ................................................................................................................................. 90Iron Oxide Pigments .................................................................................................................... 90Chrome Pigments......................................................................................................................... 90Complex Inorganic Pigments ...................................................................................................... 91Cadmium Pigments...................................................................................................................... 91Consumption................................................................................................................................ 92

Western Europe................................................................................................................................ 92Iron Oxide Pigments .................................................................................................................... 92

Producing companies............................................................................................................... 92Salient statistics........................................................................................................................ 98Production................................................................................................................................ 98Consumption............................................................................................................................ 102Price ......................................................................................................................................... 107Trade ........................................................................................................................................ 108

Chrome Pigments......................................................................................................................... 109Producing companies............................................................................................................... 109Salient statistics........................................................................................................................ 113

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Consumption............................................................................................................................ 113Price ......................................................................................................................................... 115Trade ........................................................................................................................................ 116

Complex Inorganic Pigments ...................................................................................................... 117Summary .................................................................................................................................. 117Producing companies............................................................................................................... 117Production................................................................................................................................ 119Consumption............................................................................................................................ 119Trade ........................................................................................................................................ 121

Ultramarine Pigments .................................................................................................................. 121Summary .................................................................................................................................. 121Producing companies............................................................................................................... 121Production................................................................................................................................ 122Consumption............................................................................................................................ 122Price ......................................................................................................................................... 123Trade ........................................................................................................................................ 123

Iron Blue Pigments ...................................................................................................................... 125Summary .................................................................................................................................. 125Producing companies............................................................................................................... 126Production................................................................................................................................ 127Consumption............................................................................................................................ 127Price ......................................................................................................................................... 128Trade ........................................................................................................................................ 128

Cadmium Pigments...................................................................................................................... 129Producing companies............................................................................................................... 130Production................................................................................................................................ 132Consumption............................................................................................................................ 132Price ......................................................................................................................................... 134Trade ........................................................................................................................................ 134

Bismuth Vanadate Pigments........................................................................................................ 136Producing companies............................................................................................................... 136Consumption............................................................................................................................ 137

Rare Earth Sulfide Pigments........................................................................................................ 137Producing companies............................................................................................................... 138Production................................................................................................................................ 138Consumption............................................................................................................................ 138Price ......................................................................................................................................... 138

Eastern Europe................................................................................................................................. 138Producing Companies .................................................................................................................. 138Production.................................................................................................................................... 144Consumption................................................................................................................................ 145

Japan ................................................................................................................................................ 146Producing Companies .................................................................................................................. 146

Iron oxide pigments ................................................................................................................. 149Chrome pigments..................................................................................................................... 149Other color inorganic pigments ............................................................................................... 149

Production.................................................................................................................................... 150Consumption................................................................................................................................ 151

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Price ............................................................................................................................................. 154Trade ............................................................................................................................................ 155

Other Asian Countries ..................................................................................................................... 157Producing Companies .................................................................................................................. 157China............................................................................................................................................ 160

Producing Companies .............................................................................................................. 160Trade ........................................................................................................................................ 161

Republic of Korea........................................................................................................................ 162Producing Companies .............................................................................................................. 162Trade ........................................................................................................................................ 162

Taiwan ......................................................................................................................................... 163Producing Companies .............................................................................................................. 163Trade ........................................................................................................................................ 163

Organic Color Pigments .......................................................................................................................... 163Description........................................................................................................................................... 163

Azo Pigments................................................................................................................................... 164Phthalocyanine Pigments................................................................................................................. 166Condensation Acid Pigments........................................................................................................... 167Quinacridone Pigments.................................................................................................................... 168Perylene Pigments............................................................................................................................ 168Other Organic Pigments .................................................................................................................. 168

Manufacturing Processes ..................................................................................................................... 169Azo Pigments................................................................................................................................... 169Phthalocyanine Pigments................................................................................................................. 170Quinacridone Pigments.................................................................................................................... 172Basic Dye Pigments......................................................................................................................... 173

Supply and Demand by Region ........................................................................................................... 173United States.................................................................................................................................... 173

Producing Companies .................................................................................................................. 173Salient Statistics........................................................................................................................... 180Consumption................................................................................................................................ 184

Printing inks............................................................................................................................. 187Paints and coatings .................................................................................................................. 191Plastics, pigmented fibers and rubber ...................................................................................... 194Other ........................................................................................................................................ 198

Price ............................................................................................................................................. 199Trade ............................................................................................................................................ 200

Imports..................................................................................................................................... 201Exports..................................................................................................................................... 201

Canada ............................................................................................................................................. 202Producing Companies .................................................................................................................. 202Trade ............................................................................................................................................ 202

Mexico ............................................................................................................................................. 203Producing Companies .................................................................................................................. 203Trade ............................................................................................................................................ 204

South America ................................................................................................................................. 205

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Western Europe................................................................................................................................ 205Producing Companies .................................................................................................................. 206

Azo pigments ........................................................................................................................... 206Phthalocyanine pigments ......................................................................................................... 208Other organic pigments............................................................................................................ 211

Production.................................................................................................................................... 212Consumption................................................................................................................................ 214

Printing inks............................................................................................................................. 215Paints and coatings .................................................................................................................. 217Plastics and rubber ................................................................................................................... 217Pigmented fibers ...................................................................................................................... 217Textile printing ........................................................................................................................ 219Pigments for paper ................................................................................................................... 219Other ........................................................................................................................................ 219

Price ............................................................................................................................................. 220Imports..................................................................................................................................... 220Exports..................................................................................................................................... 221

Eastern Europe................................................................................................................................. 222Producing Companies .................................................................................................................. 222Production.................................................................................................................................... 223

Czech Republic........................................................................................................................ 223Hungary.................................................................................................................................... 223Commonwealth of Independent States .................................................................................... 223

Japan ................................................................................................................................................ 224Producing Companies .................................................................................................................. 224Production.................................................................................................................................... 226Consumption................................................................................................................................ 228Price ............................................................................................................................................. 231Trade ............................................................................................................................................ 231

Other Asian Countries ..................................................................................................................... 233China............................................................................................................................................ 234Republic of Korea........................................................................................................................ 235Taiwan ......................................................................................................................................... 236China............................................................................................................................................ 236India ............................................................................................................................................. 236

Appendix—Special Effect Pigments ....................................................................................................... 236

Bibliography ............................................................................................................................................ 239

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SUMMARY

WORLD MARKET SIZE

In 1999, the world market value for colored pigments (inorganic and organic) reached $7.5 billion—$2.6billion for inorganic color pigments and $4.9 billion for organic pigments, of which high-performanceorganic pigments accounted for $1.1 billion. Between 1996 and 1999 the global color pigments markethas been impacted by declines for prices for most pigments classes. The following pie charts provide anoverview of the total world market value for colored pigments by chemical class and by region:*

World Market Value of Colored Pigments by Chemical Class—1999(total market value = $7.5 billion)

Iron Oxide13%

Complex Inorganic12%

Chrome Pigments6%

Other Inorganic8%

Azo/Other23%

High-Performance15%

Phthalocyanine23%

Inorganic PigmentsOrganic Pigments

Western Europe37%

North America28%

Other Asia14%

Japan11%

Central/SouthAmerica

5%

Middle East, Africa

and Other3%

EasternEurope

3%

World Pigment Production by Region

* Between 1996 and 1999 the average unit weight value for color pigments declined about 13% in dollar terms;

however, over the same period the U.S. dollar increased in value by 17% relative to the Euro. Therefore, statedin Euro terms, the global pigment market appreciated by 25% between 1996 and 1999, while in dollar terms itgrew by only 7%.

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With a 37% market share, Western Europe is the largest colored pigments–producing region, followed byNorth America with 28%, while Asia accounted for 25% of the total market. The following graph showsthe world market value in 1999 by region, for the three main organic pigment classes—classical azopigments, phthalocyanine pigments and organic high-performance pigments:

0

200

400

600

800

1,000

1,200

1,400

1,600

North America Western Europe Asia, Other JapanCentral/

South AmericaEasternEurope

Middle Eastand Africaand Othera

World Market Value of Organic Pigments by Region and Chemical Class—1999

High-Performance PigmentsPhthalocyaninesAzo/Other

Millions of Dollars

a. Includes all organic pigments.

North America and Europe (i.e., Western and Eastern Europe) are clearly the largest markets for organicpigments. Together with Japan, these regions also account for the dominant share of the most profitablepigments market—high-performance pigments. Shown below is the world market value by type oforganic pigment.

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World Market Value of Organic Pigments byChemical Class—1999

Azo/Other59%

High-PerformancePigments

12%

Phthalocyanine Pigments

29%

Total Market Value = $4.9 billion

With a 59% world market value share in 1999, azo pigments are the largest group of organic pigments,followed by phthalocyanines (blue and green), with a share of 29%. High-performance pigmentsaccounted for the remaining 12%. The classical azo and phthalocyanine pigments groups arecharacterized by lower profit margins resulting from rising competition from lower-priced imports, whilethe high-performance pigments group typically retains higher margins. This latter group is dominated bythe leading organic pigment producers: Clariant, Ciba Specialty and BASF.

The following table summarizes the world pigments consumption in value terms in 1999. The datainclude all major pigment applications, printing inks, paints and coatings and plastics, as well as textileprinting, paper and leather, but exclude consumption of special effect (pearlescent/ luster and metallicpigments) and anticorrosion pigments.

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World Market Value of Color Pigments by Region—1999(millions of dollars)

NorthAmerica

SouthAmerica

WesternEurope

EasternEurope

Africa andMiddle East Japan

Rest ofAsia Other Total

Iron Oxides 310 52 385 33 71 54 105 10 968Chromes

Chromates 56 11 37 7 9 13 47 3 182Chromium Oxide 39 11 121 5 8 25 22 3 233

Complex Inorganic 299 71 267 13 28 142 116 4 939Ultramarines 26 9 25 6 11 7 5 2 91Iron Blues 8 2 16 2 3 2 8 0 40Cadmiums 4 3 6 5 4 1 4 0 28

Bismuth Vanadate 6 0 10 0 0 2 1 0 19Rare Earth Sulfides 0 0 0 0 0 0 0 0 1

Total 747 159 866 71 134 246 307 21 2,551

,551Azo/Other 641 84 557 36 406 173 208 8 2,114Phthalocyanine 529 74 446 67 0 183 381 15 1,695

High-Performance 395 31 269 11 0 244 141 7 1,099

Total 1,565 189 1,272 114 406 600 731 31 4,907Total Colored 2,260 350 2,138 185 540 846 1,038 52 7,458

SOURCE: CEH estimates.

May 2001 PIGMENTS Pigments575.0000 K


WORLD SUPPLY/DEMAND

LEADING PRODUCERS

In general, pigment producers specialize either on the manufacture of inorganic pigments or organicpigments. Only a few companies manufacture both pigment groups; Bayer, BASF and Ciba manufactureboth, however, for BASF and Ciba, the inorganic pigment business is significantly smaller. This tendencyto specialize is attributable to the differences between inorganic and organic pigments in:

● manufacturing processes—having no chemistry in common

● volumes—organic pigment market segments typically are smaller

● market segments—few applications in common

● prices and premiums—inorganic pigments tend to be less expensive, while organic pigmentstypically have higher prices and higher premiums.

INORGANIC PIGMENTS

The largest inorganic pigment is synthetic iron oxide. Worldwide, the top four producers of synthetic ironoxide pigments in 2000 are ranked as follows: Bayer, which holds roughly half of the world’s market;Elementis; Laporte (acquired by Kohlberg, Kravis Roberts); and Toda Kogyo. Their headquarters andmanufacturing locations are shown in the following table:

World’s Largest Synthetic Iron OxidePigment Manufacturers

Company, HeadquartersManufacturing

Locations

Bayer, Germany BrazilChina (finishingplant)Germany

Elementis, United Kingdom ChinaUnited KingdomUnited States

Rockwood Pigments, United States ChinaGermanyItalyUnited KingdomUnited States

Toda Kogyo, Japan Japan SOURCE: CEH estimates.

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ORGANIC PIGMENTS

The world’s largest organic pigment manufacturers include four Western European firms, followed bythree Japanese companies; headquarters and manufacturing locations are shown in the following table:

World’s Largest Organic Pigment Manufacturers

Company, HeadquartersManufacturing

Locations

BASF, Germany BrazilChinaGermanyUnited States

Bayer, Germany GermanyMexicoUnited States

Ciba, Switzerland ChinaGermanySwitzerlandUnited Kingdom

Clariant, Germany ChinaFranceGermanyIndiaJapanMexicoSpainUnited States

Dainichiseika Color and ChemicalsMfg. Co., Ltd., Japan

Japan

United States (Diacolor-Pope)

Dainippon Ink and Chemicals,Inc., Japan

China (Suzhou Lintong DyestuffChemical Co Ltd.)JapanDenmark (KBK)India (Shudishan)United States (Sun Chemical)

Toyo Ink Mfg. Co., Ltd., Japan JapanFrance (Francolor)Mexico


Clariant, followed closely by Ciba Specialty, are the market leaders of organic pigments. At somedistance follow BASF and other listed companies. Within the large-volume group of phthalocyaninepigments BASF is the world’s leading producer.

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PRODUCTION

Total world production of white, black and colored pigments reached 5.7 million metric tons in 1999. Ofthis volume approximately 68% was titanium dioxide, 16% iron oxide pigments, about 8% pigment-gradecarbon black and only 8% for other colored pigments, including organic pigments. The following graphsshow the estimated world production by major pigment group in 1999:

World Production of Pigments—1999

TitaniumDioxide

68%

Iron Oxides16%

Carbon Black8%

OtherPigments

8%

Total Production = 5.7 Million Metric Tons

Azo35%

Chromes15%

Phthalocyanine17%

High-Performance

7%

Other20%

ComplexInorganic

6%

Synthetic iron oxides represent the largest share of the worldwide colored pigments market andproduction is dominated by Western Europe. Likewise, of the three major regions covered in this report,Western Europe leads in production of chrome (or chromium) pigments and organic pigments and in thetotal production of all colored pigments. The United States is a significant producer of organic pigments,accounting for about 25% of total world production. Asia has become an important organic pigments–producing region in volume terms. Five countries, including Japan, China, India, the Republic of Koreaand Taiwan, account for most Asian production. During the last decade production of and demand fororganic pigments in Eastern Europe has declined sharply and is only now gradually stabilizing.

The figures below illustrate world production of organic pigments by region and chemical class in 1999,as a percent of the total on a dry weight basis.

N R Kannan

Total world production of white, black and colored pigments reached 5.7 million metric tons in 1999. Of this volume approximately 68% was titanium dioxide, 16% iron oxide pigments, about 8% pigment-grade carbon black and only 8% for other colored pigments, including organic pigments.

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World Production of Organic Pigments—1999(total production = 249 thousand metric tons)

Western Europe26%

United States29%Japan

14%

Other Asia19%

Other12%

By Region

PhthalocyanineBlue and Green

29%

Red Lakes22%Monoazo

13%

Diazo12%

Naphthol AS8%

Other AzoPigments

8%

Polycyclicand Other

8%

By Chemical Class

Two pigments, phthalocyanine blue and green, accounted for nearly 26% of total organic pigmentsproduction in 1999. About 60% of organic pigments have an azo structure in their molecule. Most of thephthalocyanine- and azo-based pigments are considered to be in the lower- to medium-value group ofproducts. The high-performance products are found primarily in the polycyclic pigments. Among themost expensive pigment groups are pigments such as diketo-pyrrolo-pyrrole quinacridone, anthraquinoneand perylene. The business of these pigments is, however, in the hands of only a few internationalcompanies.

CONSUMPTION

The world consumption of white, black and colored pigments reached approximately 5.7 million metrictons in 1999. The following table gives an estimate of the world pigments consumption by region andmain pigment class:

N R Kannan

World Production of Organic Pigments—1999

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World Consumption of Pigments by Region—1999(metric tons, dry pigment basis)

NorthAmerica

SouthAmerica

WesternEurope

EasternEurope

Africa andMiddle East Japan

Rest ofAsia Other Total

WhiteTitanium Dioxide 1,338,000 189,000 1,112,000 137,000 120,000 261,000 652,000 42,600 3,851,600Zinc Oxide 12,000 3,500 12,000 4,000 3,500 4,100 8,000 1,000 48,100

BlackCarbon Black 172,304 47,640 94,671 17,118 28,181 52,030 53,595 5,496 471,034

Color InorganicIron Oxides 282,000 47,640 350,000 30,000 64,581 48,800 95,280 8,793 880,094

ChromesChromates 19,709 4,000 13,000 2,500 3,200 4,700 16,600 1,000 64,709Chromium Oxide 7,250 2,000 22,500 1,000 1,400 4,600 4,000 500 43,250ComplexInorganic

9,046 2,154 8,077 400 862 4,308 3,525 108 28,478

Ultramarines 6,600 2,382 6,300 1,500 2,692 1,800 1,200 440 22,914Iron Blues 2,000 538 4,000 400 754 500 2,000 50 10,242Cadmiums 362 300 500 400 377 100 350 0 2,389BismuthVanadate

172 12 300 0 0 50 30 5 569

Rare Earth Sulfides 4 1 5 0 0 1 1 0 13

Total 327,144 59,027 404,682 36,200 73,866 64,859 122,986 10,895 1,099,659

Color OrganicAzo/Other 53,000 6,908 46,000 3,000 6,677 14,300 17,230 700 147,815Phthalocyanine 21,350 2,978 18,000 2,700 4,200 7,380 15,400 600 72,607High-Performance 10,550 834 7,200 300 754 6,520 3,769 200 30,127

Total 84,900 10,719 71,200 6,000 11,631 28,200 36,399 1,500 249,049Total Color 365,044 69,746 475,882 42,200 85,496 93,059 159,385 12,395 1,348,708Total 1,887,348 309,886 1,694,553 200,318 237,177 410,189 872,980 61,491 5,719,441


N R Kannan

World Consumption of Pigments by Region—1999

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Titanium dioxide, the most important white pigment, accounted for 68% of total world pigmentconsumption by weight. From this perspective it is understandable that much of the market attention isfocused on this single pigment. Because of this, titanium dioxide and carbon black are each described indetail in separate marketing research reports. The color pigments, which are described in this report,accounted for about 24% of the total pigment consumption in 1999. Within color pigments, iron oxidepigments are the largest in volume terms. Iron oxide pigments accounted for about 65% of the total colorpigments consumption in 1999.

The United States is the largest color pigment–consuming country, accounting for about 22% of the totalconsumption. Western Europe is, however, the largest consuming region, accounting for about 37% oftotal consumption.

Three main applications—printing inks, paints and coatings and plastics—accounted for about 88% oftotal organic pigments consumption in 1999. The following pie chart gives the world consumption involume by main application for 1999:

Printing Inks54%

World Consumption ofOrganic Pigments by Market Value—1999

Paints andCoatings

22%

Plastics12%

TextilePrinting

4%

PigmentedFibers

3%

Paper2%

Other3%

WORLD PIGMENTS BUSINESS DEVELOPMENT

The world pigment business situation and particularly that of organic pigments, is expected to changesteadily during the next decade. Some of the most important challenges for pigment producers will be tocope with the rapid globalization of the business, the maturing markets in some applications and regions,the continued oversupply of classical pigments (keeping prices depressed) and the ever increasingenvironmental pressures. The major business trends are described below.

DEMAND

The consumption of pigments is driven primarily by growth in the printing inks, paints and coatings, andplastics industries. Worldwide markets for pigments are expected to grow more or less in line with GDPduring the next five years. In Japan, the demand for pigments is expected to grow only slightly, with aslightly stronger growth for Western Europe and stronger growth for the United States. In Asian countries

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other than Japan, primarily China and India, demand for pigments will grow significantly, particularly insurface coating applications but also for printing inks. For the export market, China will require moresophisticated pigments for colored plastic goods, as well as for pigment-printed textiles. Other Asiannations will develop a demand pattern similar to China and it can be expected that the demand in mostSoutheast Asian countries will grow substantially, averaging 4-8% per year during 1999-2004. Overall itcan be expected that during 1999-2004, the market value in Asia (excluding Japan) will grow by 5-6% peryear.

In South America, the domestic demand for pigments is expected to grow modestly, possibly above thegrowth rate in North America. Actual value increases, however, will not be spectacular, remaining wellbelow the increase in any of the three major countries/regions. The largest end-use markets for colorinorganic pigments are construction, paints and coatings, plastics and ceramics. Color organic pigmentsare consumed mostly for printing inks, followed by paints and coatings and plastics.

Total consumption of iron oxide pigments by volume will grow moderately over 1999-2005, withcontinued demand from the construction industry, which is the largest market for iron oxides. One of thetwo major classes of chrome pigments, green chromium oxide, will experience moderate growth.Consumption of the other major class, lead chromates (primarily chrome yellow, chrome orange andmolybdate orange), is expected to continue to decline, as will consumption of cadmium pigments. Healthand environmental concerns about heavy metal–containing pigments and increased competition fromorganic replacements are adversely affecting overall consumption of lead chromate and cadmiumpigments. However, in a few regions such as Asia and Oceania, consumption of cadmium pigments,while smaller than in the United States or Western Europe, is still increasing gradually. Worldwideconsumption of complex inorganic pigments will experience some growth in volume, aided by theirpartial absorption of the markets lost by cadmium and chrome pigments.

During 1999-2004, color organic pigment consumption in the three major regions combined will grow 2.5to 3.0% per year by volume. The highest growth rate will be in plastics applications, where thedevelopment and use of specialty high-performance organic products continues to increase.

SUPPLY

The production of low- to medium-tier products is expected to continue to migrate from Western Europeand the United States to the lower-cost countries, such as China and India (e.g., iron oxide pigments,commodity-type azo pigments and phthalocyanine pigments) and, to a lesser degree, South America(primarily Argentina and Brazil).

MARKET PARTICIPANTS

During the last decade, the color pigments industry has passed through a period of significantrestructuring, responding to the globalization of pigment markets, competitive factors and the impacts ofenvironmental regulations. A number of smaller producers, unable to compete with larger internationalfirms, closed their plants or were acquired by larger, mainly Western European or Japanese firms. Productlines were realigned toward the more profitable, higher-value pigments.

In early 2001, color pigment producers in the United States, Western Europe and Japan were distributedas follows:

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Number of Color Pigment Producers by Major Region—2001a

Inorganic Organic Total

United States 20 18 38Western Europe 40 11 51Japan 14 16 30

Total 74 45 119 a. Excludes white pigments and carbon black. Because some

companies produce both inorganic and organic pigments, eachnumber represents the net number of corporate entitiesinvolved in that particular region(s) or pigment category. Forthis reason, the totals do not equal the sums of the categories.


As a result of the anticipated market changes discussed above, the producers of pigments are faced withsignificant challenges as well as opportunities:

● Prices are becoming uniform between regions as markets become increasingly efficient andglobal. Global price competition and market efficiencies are in turn facilitated by electroniccommerce as well as advances in automated inventory control and logistics management for bothproducers and consumers of pigments.

● Large producers are finding their competitive strengths by streamlining their product ranges andshifting production to lower cost countries. Toll manufacturing and swap deals will become evenmore important.

● The downstream integration of pigment producers to end-use markets, such as the printing inks,plastics and spin-dyeing markets, will continue as pigment producers secure their shares in theincreasingly competitive market.

● In Asia and particularly in China and India, new opportunities are further developing forinternational companies. On the demand side, many of the Asian countries have clearly emergedas the most rapidly growing markets for pigments, including high-performance pigments. On thesupply side, the sourcing of unfinished (requiring grinding, coating, etc.) large-volume pigmentsfrom lower-cost production sites in these countries helps sustain corporate profit margins. Astrong local market presence is required in order to capture a sizeable volume of this growingbusiness.

PRODUCT RANGE

From a product portfolio perspective, some of the most important challenges to producers will include:

● A continued phase-out of heavy metal–containing pigments. These pigments will be replaced byorganic, as well as novel inorganic pigments (e.g., complex inorganic color pigments, bismuthvanadate and rare earth sulfide pigments). It can be expected that heavy metal pigmentsubstitution will be completed in the United States, Japan and Western Europe within a few years.The other countries will soon have to follow suit, particularly for pigments used in end products

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that are destined for Western markets. In many cases, producers of heavy metal–based colorinorganic pigments will be facing critical decisions regarding their viability to remain in thepigments business at all.

● In the surface coating and printing ink markets, producers will have to continue to modify theirpigment lines to ensure acceptance in more environmentally acceptable technologies (e.g.,waterborne coatings, powder coatings and radiation-curable inks and coatings).

● Small- to medium-sized producers of pigments, in particular, will have to invest in R&D to be ina position to offer new products and customized service (e.g., customized pigment dispersions,pigments with increased fastness and heat stability).

INTRODUCTION

The worldwide pigments industry produces hundreds of colorant, extender and functional pigments for awide spectrum of industrial and consumer markets.* The major markets are paints and coatings, plastics(including spin-dyed fibers) and construction materials. Other markets include paper, ceramics,elastomers, inks, textiles, glass, food and cosmetics.

This report focuses on pigments classified as colorants—those that possess opacity and contribute to thecolor or color-related properties of the vehicles into which they are incorporated. Extender pigments (usedfor cost reduction and to control such other noncolor characteristics as viscosity and gloss of the endproduct and anticorrosiveness) and functional pigments are briefly treated only qualitatively. Furtherinformation on these pigments (including metal flakes) may be found elsewhere in the ChemicalEconomics Handbook.

The data are segmented first by inorganic color pigments and organic color pigments and thengeographically by North America, Western Europe and Japan, which together produce and consume themajority of the world’s pigments. In addition, information is presented for South America, EasternEurope, China, the Republic of Korea and Taiwan. Further, within each geographic segment, the supplyof and demand for each major colorant group—iron oxides, chromes, complex inorganics, cadmiums,other inorganics and organics—are treated separately. White pigments, primarily titanium dioxide andblack pigments, primarily carbon black, are only mentioned briefly since titanium dioxide and carbonblack are extensively treated in the CEH marketing research reports on those subjects.

Pigments can be defined as follows:

Color, black, white or fluorescent particulate organic or inorganic solids which usually areinsoluble in and essentially physically and chemically unaffected by, the vehicle or substrate inwhich they are incorporated. They alter appearance by selective absorption and/or by scattering oflight. Pigments are usually dispersed in vehicles or substrates for application. Pigments retain acrystal or particulate structure throughout the coloration process.

In contrast, “dyes are soluble and/or go through an application process which, at least temporarily,destroys any crystal structure of the color substances,” according to the Ecological and ToxicologicalAssociation of the Dyestuff Manufacturing Industry (ETAD).

* An extender pigment is a pigment used to reduce cost per unit volume by increasing bulk.

May 2001 PIGMENTS Pigments575.0000 T


Pigments serve several functions; the two primary ones are as colorants and extenders. Other functionalapplications include providing corrosion or heat resistance, antifouling capability, rubber accelerationactivation and reinforcement.

Pigments may be segregated in any one of several different ways. In this report the criteria on which theclassification system is based are as follows: (1) colorant—black, white or color, (2) chemical type—organic or inorganic, (3) origin—natural or synthetic and (4) chemical structure. The following list is akey to the color groups and chemical compositions:

Representative Pigments by Chemical Class and Color

Inorganic Pigments

White PigmentsAntimony Trioxide

PW-11Calcium CarbonateLithopone

PW-5Titanium DioxideWhite Lead or Basic Lead Carbonate

PW-1Zinc Oxide (zinc white)Zinc Sulfide

Black PigmentsAcetylene BlackBone BlackCarbon Black

Furnace BlackThermal Black

Complex InorganicsGraphite or Crystallized CarbonLampblackMagnetite or Naturally Occurring Iron OxideManganese BlackMineral BlackSynthetic Black Iron Oxide

Color PigmentsCadmium Pigments (all :1 are Lithopone form)

OrangeCadmium Sulfoselenide Orange

PO-20PO-20:1

Cadmium Mercury SulfidePO-23

RedCadmium Sulfoselenide Red

PR-108PR-108:1

May 2001 PIGMENTS Pigments575.0000 U


Representative Pigments by Chemical Class and Color (continued)

Inorganic Pigments (continued)

Color Pigments (continued)Cadmium Mercury Sulfide

PR-113Yellow

Cadmium/Zinc Sulfide Yellow (lemon)PY-35PY-35:1

Cadmium Sulfide Yellow (primrose)PY-37PY-37:1

Chrome PigmentsBarium Chromate

PY-31Chromium Oxides or Chromium Oxide Greens or Chrome Oxide Greens

Chromium Oxide Green or Anhydrous OxidePG-17

Hydrated Chromium Oxide Green or Hydrated Oxide or Guignet’s GreenPG-18

Chromium Phosphate or Arnavdon’s GreenPG-17:1

Lead ChromatesBasic Lead Silicochromate

PO-21:1Chrome Green

PG-15Chrome Orange

PO-21Chrome Yellow

PY-34Molybdate Orange

PR-104Normal Lead Silicochromate (yellow)

Strontium ChromatePY-32

Zinc Chromate or Zinc YellowPY-36

Complex Inorganic PigmentsCobalt Blue or Cobalt Aluminate Blue Spinel

PB-28Cobalt Chromite Blue-Green Spinel

PB-36Cobalt Chromite Green Spinel

PG-26Cobalt Titanate Green Spinel

PG-50Cobalt Violet Phosphate

PV-14Copper Chromite Black

PBk-28

May 2001 PIGMENTS Pigments575.0000 V




Complex Inorganic Pigments (continued)Chrome Titanate or Chrome Antimony Titanium Buff Rutile

PBn-24PBn-29PBn-31

Iron Cobalt Chromite BlackPBk-27

Manganese Titanate or Manganese Antimony Titanium Buff RutilePY-164

Nickel Ferrite Brown SpinelPBn-34

Nickel Titanate or Antimony Titanium Yellow RutilePY-53PY-119PY-157PY-161

Iron Oxide PigmentsNatural Iron Oxide Pigments

BlackPBk-11

BrownMetallic BrownNatural Van Dyke BrownUmbers

Burnt (deep reddish brown)RawPBn-7

Micaceous Iron Oxide BlackNatural Red

PR-102Yellow to Red

Ochers (yellow)PY-43

Siennas (yellow-orange-red)Raw Sienna (yellow)Burnt Sienna (red)

Synthetic Iron Oxide PigmentsBlack

PBk-11Brown

PBn-6Red Oxide

Synthetic Ferric OxidePR-101

TanPBn-11 (ferrite containing zinc oxide or magnesium oxide)

YellowPY-42

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Other Inorganic PigmentsBismuth Vanadate

PY-184Iron Blues orFerriferrocyanides orChinese, Milori or Prussian Blues

PB-27Manganese Violets

PV-16Rare Earth Sulfides

PO-78PR-265 (two types)PR-275 (two types)Yellow Pigment

Ultramarine BluePB-29

Ultramarine VioletPV-15

Organic Color Pigments

Azo PigmentsArylide (Hansa) Yellows and Oranges

PY-1PY-3PY-65PY-73PY-74

BenzimidazolonesPbn-25PO-36PO-60PO-62PR-171PR-175PR-176PR-185PR-208PV-32PY-120PY-151PY-154PY-156PY-175

Diarylide Oranges and YellowsDianisidine Orange

PO-16Diarylide Yellow AAA

PY-12PY-13

Diarylide Yellow AAOTPY-14PY-17PY-83

May 2001 PIGMENTS Pigments575.0000 X



Organic Color Pigments (continued)

Azo Pigments (continued)Dinitraniline Orange

PO-5Disazo Condensation Pigments

PBn-23PO-31PR-144PR-166PY-93PY-95PY-128

Lithol® RedSodium Salt

PR-49Barium Salt

PR-49:1Calcium Salt

PR-49:2Strontium Salt

PR-49:3Lithol® Rubine

PR-57Calcium Salt

PR-57:1Naphthalene Sulfonic Acid Pigment Lakes

PO-19PR-60:1PR-66PR-67PY-104

Naphthol Reds and BrownsPR-2PR-5PR-7PR-9PR-17PR-22PR-23PR-31PR-112Naphthol Red

PR-170PBn-1

Permanent Red 2BPR-48Barium Salt

PR-48:1Calcium Salt

PR-48:2Strontium Salt

PR-48:3Manganese Salt

PR-48:4

May 2001 PIGMENTS Pigments575.0000 Y




Azo Pigments (continued)Pyrazolones

Bright Orange RedPO-13PO-34

RedPR-38

Red Lake CSodium Salt

PR-53Barium Salt

PR-53:1Red 2G

PR-52Calcium Salt

PR-52:1Manganese Salt

PR-52:2Scarlet 3B Lake

PR-60Toluidine Red

PR-3

Condensation Acid PigmentsAlkali Blue

PB-19PB-61

Perylene PigmentsPR-123PR-149PR-178PR-179PR-190PR-224

Phthalocyanine PigmentsCopper Phthalocyanine Blue

PB-15Alpha 15:1 NC (noncrystallizing)Alpha 15:2 NCNF (noncrystallizing/nonflocculating)Beta 15:3 NCBeta 15:4 NCNF

Copper Phthalocyanine GreenPG-7PG-36

Phthalocyanine Blue, Metal-FreePB-16

May 2001 PIGMENTS Pigments575.0000 Z




Quinacridone PigmentsPO-48PO-49PR-122PR-202PR-206PR-207PR-209PV-19PV-42

Other PigmentsAlizarine Maroon

PV-5:1Alizarine Red

PR-83Aniline Black

PBk-1Anthanthrone OrangeBasic Dye Pigments

Ethyl VioletPB-14

Methyl VioletPV-3

Fugitive Methyl VioletPV-3:3

Rhodamine Red or Alizarine (Madder) LakePR-81

Rhodamine VioletPV-1

Carbazole Dioxazine VioletPV-23

1,4-Diketo-pyrrolo-pyrroles (DPPs)PR-254PR-255

Flavanthrone YellowFluorescent Organic PigmentsIndanthrone BlueIsoindolines, Yellow and Orange

PY-139Quinophthalones

PY-75PY-138

TetrachloroisoindolinonesPO-42PO-61PR-180PY-109PY-110

Victoria Blue BOPB-1PB-1:X

SOURCE: Compiled from various sections of this report.

The following table presents the commercially most important organic pigments, arranged by color aswell as by chemical constitution. The largest-volume products are boldfaced.

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Commercial Organic Pigments by Color Index and Chemical Classa

Yellow Orange Red Violet Blue Green Brown Black

Azo PigmentsMonoazo

Nonlaked 1, 3, 5, 6, 60, 65, 73, 74, 75,97, 98, 111, 116

1

Laked 113, 168, 169, 183, 190, 191

Benzimidazolone 120, 151, 154, 180, 181, 194 36, 60, 62 171, 175, 176, 185, 208 32 25

DisazoBisacetoacetarylide 116, 155

Diarylide 12, 13, 14, 17, 55, 63, 81, 83,87, 114, 121, 126, 127, 136,152, 170, 171, 174, 176

15, 16

Pyrazolones 13, 34 37, 38, 41, 111

Disazo Condensation 93, 94, 95, 128 31 144, 166, 214, 220, 221, 242,248, 262

23, 41

Metal Complex 117, 129, 150, 153, 177, 179 59, 65, 68 257 8, 10

Naphthol 2, 5 1, 3, 4, 6

Naphthol AS 22, 38 2, 5, 7, 8, 9, 10, 12, 13, 14, 15,17, 18, 21, 22, 23, 31, 112, 119,136, 146, 147, 170, 184, 187,188, 210, 252, 256

25 25 1

Red LakesBONA 48:1, 48:2, 48:3, 48:4, 52:1,

52:2, 57:1, 58:4, 63:1, 2005

Naphthol 17, 17:1, 46 49:1, 49:2, 53, 53:1, 68

Naphthol AS 151, 237, 238, 239, 240

Isoindoline/one 110, 139, 173, 185 61, 66, 69 260 38

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Commercial Organic Pigments by Color Index and Chemical Classa (continued)

Yellow Orange Red Violet Blue Green Brown Black

Polycyclic PigmentsAnthraquinone-

Structured PigmentsAnthanthrone 168Anthrapyrimidine 108Anthraquinone 147 83, 89, 177 5:1 20Flavanthrone 24Indanthrone 60Isoviolanthrone 31Pyranthrone 51 216, 226

Diketo-Pyrrolo-Pyrrole 254, 255Dioxazine 23, 37Perinone 43 194, Vat Red 74Perylene 123, 149, 178, 179, 190, 224 29 26 61Phthalocyanines 15, 15:1,

15:2, 15:3,15:4, 15:6,16, 68

7, 36

Quinacridones 48, 49 122, 192, 202, 206, 207, 209 19, 30,42

Quinophthalone 138Thioindigo 88, 181Triarylcarbonium 81:1, 169 1, 2,

3, 271, 2, 9, 10,14, 19, 59,61, 62

1, 2, 4

OtherAniline Black 1Other 101, 192 64, 67 90, 251

a. Boldface numbers indicate the largest-volume pigments, with world production of more than 10 thousand metric tons. Italic numbers denote pigments with significant

commercial importance, but with world output of less than 10 thousand metric tons. All other numbers indicate pigments of commercial importance, but with worldoutput of less than one thousand metric tons.

SOURCES: CEH estimates; Colour Index.



The standard designation of individual pigments is by their generic name and chemical constitution asassigned by the Colour Index (CI), published by The Society of Dyers and Colourists (of the UnitedKingdom) and The American Association of Textile Chemists and Colorists. For example, the genericname Pigment Red 101 with Constitution Number 77491 has been assigned to synthetic red iron oxidepigment.

Throughout this report, CI names for pigments are abbreviated as shown in the following examples: PBk-1 is Pigment Black 1, PB-1 is Pigment Blue 1, PBn-1 is Pigment Brown 1, PG-1 is Pigment Green 1, PO-1 is Pigment Orange 1, PR-1 is Pigment Red 1, PV-1 is Pigment Violet 1 and PY-1 is Pigment Yellow 1.

Pigments are available in a variety of commercial forms, including the following:

● Dry colors (usually powders, also granules)

● Presscakes (water-wet pastes or granules)

● Flushed colors (thick, oily pastes)

● Fluid dispersions or slurries (pourable pastes)

● Color paste concentrates (pastes)

● Resin-bonds or predispersions (powders)

● Plastic color concentrates or masterbatches (pigment contained in plastic pellets)

● Surface-treated colors (powders or pastes)

Pigment quality is determined by its properties in the end-use application. According to the Colour Index,the technical value of a pigment is its fastness under the combined effects of the media of incorporationand the external environment, whether the finished product is, for example, a surface coating, ink, cementor plastic. Basic properties include hue, tinctorial strength, hiding power or opacity, dispersibility andfastness to light and heat (which tend to be the most noticeable properties affected by the media). Otherproperties considered by the end user are gloss, durability, transparency, resistance to chemical attack,bleeding, flocculation and migration, chemical purity, crystal and solvent stability, rheology (fluidity),adhesiveness and abrasiveness.

N R Kannan

Pigments are available in a variety of commercial forms, including the following:



ENVIRONMENTAL ISSUES

In general, the pigments with significant markets are practically nontoxic. Carcinogenicity is a concern,however, for some of the inorganic pigments such as lead chromate and cadmium sulfate. The followingtable shows some relative acute toxicity ratings, as well as carcinogenicity and exposure limits for someof the major commercial pigments:

Toxicity Characteristics and Exposure Limits for Selected Major Commercial Pigments

LD50, Oral Dosage(milligrams per

kilogram) Carcinogenicity

Permissible AirExposure Limitsa

(mg/m3)

Iron (III) Oxide(Pigment Red 101)

na No adequate evidence ofcarcinogenicity in humans

15b

Lead Chromate(Pigment Yellow 34)

>12,000(mouse)

Suspected human carcinogen 0.1c

Cadmium Sulfide(Pigment Orange 20)

>7,080(rat)

Positive carcinogenicity in rats,anticipated to be a human carcinogen

0.05d

Lithol Red Sodium Salt(Pigment Red 49)

na No evidence of carcinogenicity na

Red Lake C Toner(Pigment Red 53:1)

na No adequate evidence ofcarcinogenicity in humans

na

Lithol Rubine(Pigment Red 57)

>10,800(rat)

na na

Quinacridone(Pigment Violet 19)

>10,000(rat)

No evidence of carcinogenicity na

Dairylide Yellow AAA(Pigment Yellow 12)

>10,800(rat)

No evidence of carcinogenicity in rats na

Dairylide Yellow AAOT(Pigment Yellow 14)

>5,000(rat)

na na

a. OSHA.

b. Total dust.

c. As measured by chromium trioxide equivalent.

d. Cadmium basis.

SOURCE: Registry of Toxic Effects of Chemical Substances (RTECS), U.S. National Library of Medicine,Toxicology Data Network (TOXNET), National Institute for Occupational Safety and Health(NIOSH).

The main issue driving the regulation of pigments is concerns over carcinogenicity, followed by concernsover the neurological damage that may be caused to children by lead-containing pigments. As a result, thepigments that receive the most regulatory attention contain lead, chromium or cadmium. The followingtable summarizes the major regional and national environmental and health regulations affectinginorganic and organic pigments and their markets:



U.S. Environmental and Health Regulations Affecting Pigments

Regulatory Agency/Regulation Pigments Affected Markets Affected

State Lead Paint BansAffects over 25 states and more than 75%of U.S. highway miles

Lead chromate Highway paint

Coalition of Northeastern Governors(CONEG)a

State regulations to limit toxic metals insolid waste

Lead chromateCadmiumStrontium chromateZinc chromate

All packaging and packaging components(coatings, inks and labels)

U.S. Food and Drug AdministrationApprovals for pigment use as an additiveto foods and pet foods and to food and petfood packaging

All Foods and pet foods; paper, plastic and otherfood and pet food–packaging materials

Approvals for pigment use in cosmetics All Cosmetics

Consumer Product Safety ActLead content in children’s toys, consumerpaints and paint applied to manufacturedgoods for consumer use

Lead chromate Artist materials, children’s toys, consumerpaints, painted consumer products

U.S. Environmental ProtectionAgency (EPA)

Resource Conservation and Recovery Act(RCRA)

CadmiumLead chromate

All markets

Restrictions on metal concentrations inwaste for disposal

Strontium chromateZinc chromate

U.S. Occupational Health and SafetyAdministration (OSHA)

Proposed more stringent permissibleexposure level for cadmium in theworkplace

Cadmium All markets

a. Includes the following states: Connecticut, Iowa, Maine, Minnesota, New Hampshire, New York, Rhode Island, Virginia,

Washington and Wisconsin.




WHITE PIGMENTS

White pigments, all of which are inorganic, are characterized by high indexes of refraction, resulting inscattering of light and high opacity. Opaque white pigments are important not only because of thepredominant use of white itself but also because of the requirement for white to produce tints or lighterhues of other colors. Of the opaque white pigments, titanium dioxide (TiO2) is consumed in the largestvolume, because of its low cost per unit of hiding power. The refractive index or hiding power of TiO2pigments is higher than that of any other commercial white pigment. The United States, Western Europeand Japan combined consumed approximately 2.5 million metric tons of TiO2 in 1997, accounting for asmuch as 69% of the total world white pigment consumption by volume (excluding use for nonpigmentaryapplications). In these three regions, the surface coatings market accounts for 50% or more of the totalTiO2 consumption. Other major pigment uses include paper and paperboard (where it is also a filler),plastics/elastomers, printing inks, ceramics and building materials. (See the CEH Titanium DioxidePigments marketing research report for more in-depth information.)

Although ground calcium carbonate “pigment” is consumed in significant quantities worldwide for paper,paints, plastics and other uses, its main functions are as an extender, filler, bulking agent, viscositymodifier or reinforcing agent and it is thus outside the scope of this report (see the CEH Fine-Ground andPrecipitated Calcium Carbonate product review for more information).

Other white pigments of less commercial importance than TiO2 for pigmentary applications include zincoxide (see the CEH Inorganic Zinc Chemicals product review), white lead, lithopone, zinc sulfide andantimony trioxide.

Because of its outstanding optical properties and good environmental and health attributes, titaniumdioxide has totally displaced the older white pigments such as white lead and zinc oxide in most markets.However, zinc oxide, mostly of the lead-free type, continues to find some limited worldwide applicationas a white pigment in the paint, ceramic and ink industries. In China and Eastern Europe, zinc oxidepigments are still widely used, as the gradual substitution by TiO2 pigments has only recently gainedmomentum. The most important property that zinc oxides impart to paints is mildew resistance. Zincoxides also provide hiding power in paints, but they are less than one-seventh as efficient as TiO2 in thiscapability.

Although the primary uses for zinc oxide are nonpigmentary (as a filler and activator in elastomervulcanization, as a chemical intermediate and as a coating ingredient in photocopying paper), about 9% ofthe total U.S. zinc oxide consumption is accounted for by paints and ceramics. About 6.5% of totalJapanese zinc oxide consumption is for paints and ceramics.

Other whites that are of minor commercial importance include lithopone, white lead (basic leadcarbonate), zinc sulfide and antimony trioxide. Lithopone (PW-5) is a calcined coprecipitate of zincsulfide and barium sulfate. It is a white opacifying pigment with hiding power about one-fifth that oftitanium dioxide. White lead (PW-1) pigment use still persists to a very minor extent in the surfacecoatings industry, where its value is primarily as a corrosion inhibitor. The market for all lead-basedpigments declined dramatically in the 1980s due to legislation limiting the level of lead in paints forhousehold consumption and in products for children’s use. The white leads consumed in the United Statesare used almost entirely as heat stabilizers for polyvinyl chloride wire and cable products; less than 5% oftotal consumption goes into corrosion-resistant paints and coatings. Antimony trioxide (PW-11) is usedprimarily for its flame-retardant properties and, thus, is outside the scope of this report.



BLACK PIGMENTS

By far the largest-volume black pigment worldwide is carbon black, which includes a variety ofcarbonaceous pigments produced by combustion or cracking of hydrocarbon raw materials. Furnaceblack, from highly aromatic oil feedstock and thermal black, from natural gas, account for more than 95%of the carbon black produced. However, such other types as lampblack, acetylene black and bone blackare available.

Unlike most pigments, carbon black is often used for functional purposes other than for coloring oropacifying. The major use of carbon black, roughly 90% of annual U.S. consumption, is as a reinforcingagent for rubber products. Pigment applications account for most of the balance of carbon blackconsumption.

The major pigment use for carbon black is in printing inks, including carbon paper, followed by plasticsand then paints and coatings. Consumption of carbon black for pigment uses in the United States,Western Europe and Japan combined totaled roughly 222 thousand metric tons in 1997.

Detailed information on production and consumption of carbon black is contained in the CEH CarbonBlack marketing research report.

Other black pigments, most of which are produced in small quantities with limited commercialsignificance, include magnetite (naturally occurring iron oxide), synthetic black iron oxide, mineral black(powdered, low-grade coal), manganese black (naturally occurring manganese dioxide), complexinorganic pigments, graphite (crystallized carbon, either naturally or synthetically produced) and anorganic black pigment aniline black. Black iron oxides and complex inorganic color pigments (formerlyknown as mixed-metal oxide pigments) are discussed in the INORGANIC COLOR PIGMENTSsection of this report.

INORGANIC COLOR PIGMENTS

DESCRIPTION

IRON OXIDE PIGMENTS

Excluding titanium dioxide and extender pigments, iron oxides are the largest-volume inorganicpigments. On a worldwide basis, iron oxides have a larger-volume market share than all other colorpigments together. Because of their low cost combined with such properties as high opacity, goodlightfastness, strong absorption of ultraviolet light, good chemical resistance and heat stability undernormal ambient conditions, they are attractive for a variety of commercial applications. Their primarydisadvantage is lack of brightness compared with other inorganic pigments.

Iron oxides are available in both natural and synthetic forms in a wide range of yellow, red and browncolors as well as black shades. In recent years, synthetic iron oxides, because of their greater colorstrength, better color uniformity and higher product purity, have replaced natural oxides in manyapplications. However, some grades of the natural oxides have special properties (for example, siennashave a certain translucency) that, combined with their relatively low price, continue to make them thepigment of choice in certain markets. Recently, manufacturers of natural iron oxide pigments (i.e. ViatonIndustries with Rana Gruber) have started to manufacture micronized natural iron oxide red pigment,



which apparently has a 15% higher color strength than standard synthetic iron oxide pigments. Also, thecompany claims that these pigments have further advantages, such as an environmental friendlyproduction process, lower oil absorption and so forth.

The most important iron oxide pigment, in terms of volume, is red. In weight terms, more than four timesmore red iron oxide pigments were sold than all red organic pigments in 1995.

Some iron oxides are used for nonpigmentary purposes such as foundry sands or industrial chemicals.Since data for some of these applications are incorporated with data for pigment use, the information inthis report necessarily includes some nonpigmentary iron oxides. Iron oxides are also used in magneticmedia such as audio- and videotapes and computer disks, diskettes and tapes, but information on theseapplications is not included in this report.

The following sections briefly describe the two types of iron oxide pigments—natural and synthetic.

Natural Iron Oxide Pigments

Natural iron oxide pigments may well have been the first coloring substances known. They have beenused for centuries for their colorant properties and have proven their stability under the stress of time anda variety of climatic conditions. Today, natural iron oxides are processed from various ores, the principalones of which are hematite, geothite, limonite, siderite and magnetite. Most of these ores containconsiderably less than 100% iron oxide, although magnetite is often 95% Fe3O4 and calcined siderite is93-98% Fe2O3 as used by pigment producers. The balance of the ore components consists of inertsubstances with little color value. Although these ores are widely distributed, only a few deposits aresufficiently pure and possess the required brightness and color to justify processing into pigment form.

Hematite (Fe2O3) is generally associated with red coloration although it does exist as a gray substance offlaky structure commonly called micaceous iron oxide. Natural red iron oxides are a deep red colorbecause of their high hematite content (typically around 75%). Silica and alumina are normally associatedwith hematite.

Geothites and limonites are ferric oxides in hydrated form (Fe2O3·xH2O) and are opaque yellow shades.The yellow pigment, sienna, is mined as a limonite ore normally containing roughly 50% Fe2O3 plusother inorganics, such as silica and alumina, partly combined with the iron oxide. These mixed inorganiccompounds (iron silicates and aluminates) are responsible for the unique translucency of sienna pigments.Sienna can be converted by calcination to burnt sienna, which is dark brown. Ochers, the lighter yellowcolors, usually contain less Fe2O3 than siennas, although they may contain as much as 50% Fe2O3.Ochers are essentially clay-containing limonite. The brown umber shades are also derived from limonite.Umbers are yellow-brown in the raw state because of the higher manganese dioxide content comparedwith other natural iron oxide pigments. Like siennas, umbers may be calcined to a deep reddish-browncolor (burnt umber), which is the product favored over raw umber in the commercial market.

Siderites are basically ferrous carbonate. They are not used as such for pigmentation, but can be calcinedto form a brown ferric oxide (metallic brown). If sufficiently pure, siderites may calcine to red.

Black natural iron oxide pigment is derived from magnetite (Fe3O4), a magnetic substance used primarilyfor coal washing. Only a minute quantity of the magnetite mined is consumed in pigment applications.



Commercially, the natural iron oxides are categorized not in terms of the ores from which they originatebut as ochers (yellow), siennas (red-orange-yellow) and umbers (brown). An extensive number of gradesof each of these products is available. To meet particular customer specifications, several natural oxidesmay be physically blended or synthetic oxides added, to produce the required colorant shades.

The naturals generally have less color strength and uniformity than synthetic iron oxide pigments.However, even with these disadvantages the natural iron oxide pigments continue to have commercialimportance because of their low price. In addition, modern methods of quality control and improvedbeneficiation methods for natural iron oxides yield constantly improving products of good color value perunit price.

Synthetic Iron Oxide Pigments

Synthetic iron oxides, because they are chemically manufactured under controlled conditions, possess ahigher degree of consistency from batch to batch than do the natural iron oxides. Synthetics are red,yellow, black and brown. In the United States, the brown products are generally produced by blendingblack, red and/or yellow oxides. All of the colors are available in a variety of shades, depending on theexact method of manufacture.

The chemical formulas of the synthetic products are directly comparable with the natural pigments. Thus,Pigment Red 101, synthetic ferric oxide (Fe2O3), is the manufactured version of natural red hematite;Pigment Yellow 42 (Fe2O3·xH2O) is related to the natural limonite counterpart and synthetic PigmentBlack 11 is the manufactured variant of natural magnetite pigment (Fe3O4).

CHROME PIGMENTS

The chrome pigments discussed in this report include the lead chromate salts (chrome yellow, chromeorange and molybdate orange), chromium oxides (including hydrated chromium oxide) and normal leadsilicochromate.

The lead chromate salts vary in hue from greenish yellow through orange to pale red, depending upon thechemical composition, crystalline structure, particle size and particle size distribution of the pigment.Chrome yellow (PY-34), for example, ranges from primrose yellow, which has a definite green hue and iscomposed of lead chromate, lead carbonate and lead sulfate in solid solution, to light yellow. Greatertemperature stability and lightfastness are achieved through lower concentrations of lead sulfate. The lightyellow does not have lead carbonate and has a different crystalline structure and therefore a different hue.Medium and light red shades are produced by increasing the concentration of lead carbonate. Chromeyellow also includes a medium yellow, which is theoretically pure lead chromate. Chrome orange (PO-21) is structurally basic lead chromate (PbCrO4·PbO). Its variation in color from light orange to redderand deeper shades is associated with particle size differentials.

Molybdate orange (PR-104), which varies in hue from light orange to red, is a solid solution of leadchromate, lead molybdate and lead sulfate. Commercial molybdates generally contain 75-85% leadchromate.

Chrome yellows and oranges offer more intense colors than iron oxides, good hiding power andsatisfactory lightfastness, at a relatively low cost. However, because of their poor alkali and acidresistance, lack of stability at high temperatures and possible discoloration upon long exposure to the

May 2001 PIGMENTS Pigments575.0001 J


atmosphere (because of their reaction with sulfide to produce lead sulfide), they are inappropriate forcertain applications.

To combat these deficiencies, lead chromates may be chemically treated to improve resistance to light,heat, chemicals and other harsh conditions. Pigment particles may be encapsulated with thin layers ofmetal oxides (e.g., silica, titanium dioxide, antimony oxide or tin oxide) to improve resistance. Typicallythese coatings may add 3-5% to the weight of the pigment particle. Final properties of the pigment aredependent on the choice of metal oxides and the order in which they are applied. Lead chromates mayalso be treated by organic agents to improve ease of dispersion, regardless of end-use application.

Of the lead chromate salts, molybdate orange has the best hiding power. It possesses brilliant hue and fineparticle size, resulting in easy dispersibility for an application such as printing inks. Since molybdateorange is compatible with many inorganic as well as organic pigments, it is often blended with otherproducts to produce desired hues in the commercial marketplace. Manufacturers continue to improve theheat stability and chemical resistance of molybdate orange, thereby extending the areas of possibleapplication to high-temperature plastics and corrosive environments.

The chromium oxide greens comprise both the anhydrous oxide (PG-17), which is almost pure chromiumsesquioxide and the hydrated oxide (PG-18), often called Guignet’s green. Chromium oxide is the moststable green of the commercially available green pigments. The hydrated version has a brilliant green hueas opposed to the drab green of the anhydrous oxide. Both chromium oxide greens possess outstandinglightfastness and resistance to attack by acids and alkalies. However, the hydrated oxide is less acidresistant and heat resistant than chromium oxide and loses its water of hydration at high temperatures.Chromium oxide itself, however, can withstand high temperatures and, thus, is appropriate in high-temperature applications such as ceramics.

Chrome greens (PG-15) are normally blends of chrome yellows with iron blues. They vary in color fromlight green, with low iron blue content, to very dark greens, which contain 60-65% iron blue. The chromegreens are commercially available in pure forms and also in forms reduced with extender pigments. Likethe lead chromate salts, chrome greens are relatively inexpensive, provide good hiding power and tintingstrength and have acceptable heat resistance. However, they are subject to darkening in the presence ofsulfur and susceptible to fading in an alkaline environment. Because of these deficiencies and concernabout the toxicity of the lead component of this pigment, chrome green has been replaced, to some extent,by the organic pigment, phthalocyanine green.

A specialty chrome green product, which is a mixture of high-performance chrome yellow andphthalocyanine blue, is available in the U.S. marketplace. Although this high-performance product isrelatively expensive, it is, because of its performance characteristics, being substituted to some extent forphthalo green.

Normal lead silicochromate is a pigment with a silica core coated with medium yellow lead chromate. Itwas introduced to the U.S. market in 1963 as one in a series of coated silica-cored pigments. Since thattime it has found use in traffic paints, which are generally applied as thick films. The low density of thissilicochromate produces a high-bulk paint formulation ideal for thick coatings and economical to use onvarious types of road surfaces.



COMPLEX INORGANIC PIGMENTS

The complex inorganic color pigments (formerly known as mixed-metal oxides) are a small but importantgroup of inorganic pigments. Because of their outstanding heat resistance, chemical inertness, weatherresistance and lightfastness, these pigments, which are based on the oxides of two or more metals, areappropriate for a variety of commercial applications.

At least fifty different complex inorganic color pigments are available in the United States. Among themost important in the commercial marketplace are the nickel titanates (PY-53), chrome titanates (PBn-24), manganese titanates (PY-164) and cobalt chromites (PG-26, sometimes called camouflage green).Nickel and chrome titanates together account for approximately 50% of the total complex inorganic colorpigments used.

As a group, complex inorganics possess low tinting strength. Thus, higher-than-average pigment loadingsare often necessary to produce desired colors. Another disadvantage of this group of pigments is theirhigh price, especially when combined with some organic pigments, which tends to limit their use toapplications in which their excellent thermal stability makes them indispensable.

Synthetic complex inorganic color pigments are available in a wide range of colors, including violet, blue,green, yellow, red, brown and black, as well as varying shades of these colors. They can be classified inseveral ways, although usually color, chemical structure or crystal structure is the criterion used in theindustry. Although the actual chemical composition of most complex inorganic color pigments isvariable, each identifiable oxide does have a basic chemical formula differentiating it from all otheroxides. The two most important crystal structures are rutile and spinel, although twelve other crystalclasses of the complex inorganic color pigments have been identified.

Complex inorganic color pigments include all color pigments formed by the incorporation of color-processing metal ions into the crystal lattice of an oxidic compound that is uncolored in its pure form. Forexample, the introduction of nickel ions to replace some of the titanium atoms in the titanium dioxiderutile lattices results in a nickel rutile yellow colorant. Similarly, a reddish chrome rutile yellow is formedwhen chromium is substituted for titanium in the crystal structure. Since both nickel and chromium have alower valence in these compounds than titanium, a higher-valence metal ion, usually antimony, must beadded to balance the resultant loss of charge.

The two yellow pigments just described are members of the nickel-titanate and chrome-titanate series ofcomplex inorganic color pigments. In each of these series the range of color hues is dependent upon theactual amount of each of the metals in the pigment composition. Small quantities of other metals orcompounds (modifiers) may also be introduced into the crystal to alter the pigment properties withoutchanging the crystal structure. The complex inorganic color pigment oxides may be used alone, incombination with other inorganics or combined with stable organics. When used with organics, thecomplex inorganic color pigments provide the opacity and base color while the organic colorant addscolor intensity and brightness.

A combination of complex inorganic color pigments with organics can be substituted for cadmiumpigments in some applications. These combinations were traditionally more prevalent in Europeancountries such as Sweden, Switzerland and Denmark, when bans or proposed bans due to the uncertaintyof the safety of cadmium use caused these countries to seek substitute products.

While several grades of complex inorganic color pigments are available, the two used most often areceramic and pigment grades. Both function as colorants. However, the pigment grade is generally of a



finer and more uniform particle size with a softer texture than the ceramic grade. Some pigment gradesare surface-treated to improve their wettability and dispersibility.

In general, the zirconium-based complex inorganic color pigments are used for high-temperature ceramicapplications, the titanium-based variety are used primarily for plastics and paints, and the cobalt-, chrome-,iron- and zinc-based oxides are used for plastics, paints and ceramics.

ULTRAMARINE PIGMENTS

The ultramarine blues (PB-29) and violets (PV-15) are complex sodium aluminum sulfosilicates. Theviolets contain less sodium than the blues. Ultramarine blue is a brilliantly colored pigment with goodheat stability but poor ultraviolet stability. Thus, it is inappropriate for exterior applications. Violet ismuch weaker in color, but it possesses great permanence. Applications for ultramarine blue includeprinting inks, textiles, rubber, artist’s colors, plastics, cosmetics and roofing granules. Ultramarine violetis believed to have fewer applications than blue. Ultramarine pigments are no longer manufactured in theUnited States.

IRON BLUE PIGMENTS

Iron blues (PB-27) are also known as Chinese, Milori or Prussian blues. Demand for iron blues has beendeclining, due in part to environmental concerns, and the past few years have shown an increasingreplacement of iron blues by other pigments. Within the ink category, for example, iron blues can be usedfor black ink toning, although they have been replaced somewhat by the organic pigment alkali blue (PB-19 and PB-61) in this end use. Small quantities of iron blues are consumed in paints and coatings. Otherapplications for iron blues include carbon paper, certain plastics (e.g., low-density polyethylene), foodcolorants and paper manufacture. However, iron blues are also being replaced in these applications,primarily by phthalocyanine. Iron blues can also be used in combination with chrome yellow to makechrome green (PG-15). This market has been static and is expected to decline as iron blue is replaced byphthalocyanine blue to make phthalocyanine green, a chrome green replacement. All the U.S. supply ofiron blue is now imported.

CADMIUM PIGMENTS

All cadmium pigments are based on the compound cadmium sulfide, which itself produces a goldenyellow pigment (PY-37) when precipitated, dried and calcined. However, the cadmium pigment class alsoincludes blends of cadmium sulfide with zinc or mercury sulfides and with cadmium selenide to producecolors ranging from lemon yellow to maroon. Furthermore, the inert extender barium sulfate is frequentlyadded to the cadmiums to yield lower-cost, yet equally stable, lithopone-type pigments. In fact, in thecommercial marketplace, cadmium pigments are supplied and used mainly in the lithopone form althoughthe tinting strength of the lithopones is much weaker than that of the pure pigment forms.

To modify the basic golden yellow color of cadmium sulfide, zinc may be introduced to replace somepercentage of the cadmium and to produce greener shades of yellow (lemon and primrose, PY-35 and 37,[(Cd/Zn)S]). To produce redder colors, selenium is substituted for part of the sulfur in the cadmiumsulfide crystal lattice. Pigment Orange 20 (Cd[S/Se]) and Pigment Red 108 (Cd[Se/S]) are examples ofcolorants that result from this reaction. Currently, only Société Languedocienne de Micron-Couleurs SA(SLMC) in France is still producing mercadium pigments.



The chemical basis for the range of colors possible with cadmium sulfides and sulfoselenides is asfollows:

(Cd,Zn)S (cadmium/zinc sulfides)

Cd(S,Se) (cadmium sulfoselenide)

CdS (cadmium sulfide)

Primrose Lemon Golden Yellow Orange Red Maroon

Color Range with Cadmium Pigments


As a class, cadmium pigments have two attributes that are primarily responsible for their strong marketacceptance—excellent high-temperature stability and high color saturation for a broad range of colorsfrom primrose yellow to maroon. In addition, these versatile colorants have such other advantageousproperties as high resistance to alkali attack, light degradation and color particle migration; excellenthiding power; good dispersion characteristics; and insolubility in organic solvents. Limitations of thecadmium pigments include poor acid resistance and poor weatherability. Their poor weatherability is dueto the oxidation of sulfides to sulfates, which are water-soluble. Thus, the selenide-containing cadmiumpigments (reds) withstand poor weather better than the sulfides (yellows).

BISMUTH VANADATE PIGMENTS

Bismuth vanadate pigments are a relatively new group of high-performance pigments introducedprimarily as an alternative to lead chromate pigments. The pigments are brilliant yellow pigments with agreen tint. Their main application, with 90% of total consumption, is in paints and coatings; the remaining10% is in plastics, a growing market. Worldwide there are already a number of producers, locatedprimarily in Western Europe.

RARE EARTH SULFIDE PIGMENTS

Although rare earths have been used for color since their discovery, rare earth sulfide pigments are anovel group of pigments introduced by Rhône-Poulenc in France. Currently there are six specificpigments with varying color shades—orange, red, burgundy and yellow. The currently available pigmentsare all based on the main constituent, cerium sulfide. Variations in color are achieved by the addition ofother rare earth sulfides and by modification of the physical form. Rare earth sulfide pigments can beregarded as high-performance pigments as they possess the following characteristics:

● Excellent heat stability (up to 350°C)

● Very good weather/light stability

● Acceptable tint strength (70-100% of heavy metal pigments)

● Excellent opacity



● Good migration resistance (in compliance with European and U.S. regulations regarding foodcontact)

● Dimensional stability when incorporated with crystalline polymers

● Very good ease of dispersion

An important characteristic of these pigments is their overall favorable toxicity status, which passes allcurrent regulations. This prerequisite is the main driver, as rare earth sulfide pigments are aimed directlyat replacing heavy metal pigments in plastics (particularly technical plastics such as ABS, polyamides andpolycarbonate) and coatings.

MANGANESE VIOLET PIGMENTS

Manganese violet (PV-16) is actually a member of the complex inorganic color pigments. However, sinceit is a precipitated rather than a calcined pigment, the properties of manganese violet are different fromthose of other inorganic complexes. For example, it is translucent rather than opaque and it is notparticularly alkali-resistant. The primary application for manganese violet is in cosmetics. The ShepherdColor Company in Cincinnati, Ohio is the only U.S. manufacturer of this pigment.

MANUFACTURING PROCESSES

IRON OXIDE PIGMENTS

Natural Iron Oxide Pigments

Because of the marked variation in the chemical composition and physical properties of iron ore deposits,the methods of processing the ore to produce iron oxide pigments vary considerably. Furthermore, theultimate commercial application of the pigment determines the degree to which the ore must be treated.Generally, the following four steps are taken to produce a pigment-quality natural iron oxide:

● Grinding and classification to reduce particle size and liberate undesirable impurities

● Drying

● Calcination to dehydrated oxides or to promote reactions leading to desired color shades or toeliminate carbonates, chlorides and sulfates

● Further grinding or micronizing to produce the finished pigment

Synthetic Iron Oxide Pigments

Three principal methods are employed in the manufacture of synthetic iron oxides—precipitationreactions, thermal decomposition of iron compounds and organic reduction processes utilizing iron as thereducing agent. These processes often utilize spent pickling acid generated by the steel industry as rawmaterials. Pickling acid removes the oxides of the mill scale during the forming (rolling, drawing, etc.) ofhot steel, by conversion to soluble iron compounds in a hydrochloric or sulfuric acid bath. Ferrous

May 2001 PIGMENTS Pigments575.0001 O


chloride or ferrous sulfate obtained from spent pickling acid is roasted to drive off water and sulfuroxides, leaving iron oxides behind. The oxides contain 2-10% ferrous chloride, which must be washedprior to pigment use. In the processing, hydrochloric or sulfuric acid can be regenerated and reused in thesteel plants. Ferrous sulfate heptahydrate (copperas) by-products from the sulfate process of producingtitanium dioxide may also be used. Further, scrap metallic iron may be used as the reducing agent in theorganic reduction process of iron oxide production. In this case, the scrap iron is oxidized to iron oxide.

In all of these production processes, pigments of high and consistent quality are the goal of themanufacturers. Both color and chemical stability are of major concern since, in subsequent applications,pigments are frequently subjected to extremes of temperature, various chemical environments andultraviolet light. Thus, test measurements are conducted at each step of the pigment processing to insurethat quality standards are met. Particle size in particular must be monitored closely since it is particle sizeand size distribution that determine the color of the final pigment product.

Synthetic yellow iron oxides are commonly produced by one of two precipitation processes. In both, aferrous sulfate solution is treated with heat and compressed air, resulting in the conversion of ferrous ionsto trivalent insoluble oxides. The difference between the two processes is that in one, ferrous sulfate is thesole source of ferrous ions. In the second, the Penniman-Zoph process, metallic scrap iron is used as anadditional component. It not only acts as a neutralizer for the sulfuric acid formed in the process, but alsoserves as a continuous additional source of ferrous ions. The initial steps of this process involve thepreparation of a “seed,” which is subsequently placed in a tank containing scrap iron and ferrous sulfatesolution. The seed is circulated over the scrap iron in the presence of compressed air and iron oxide growsonto the seed. The chemical reactions of the Penniman-Zoph process are as follows:

FeSO4 + 2 NaOH Fe(OH)2 + Na2SO4

4 FeSO4 + O2 + 6 H2O 2 Fe2O3 • 2 H2O + 4 H2SO4

Fe (scrap iron) + H2SO4 FeSO4 + H2

4 Fe(OH)2 + O2 2 Fe2O3 • 2 H2O + 2 H2OFeSO4 seed

The reaction is stopped when the desired color is obtained and the final precipitate is washed, dried,ground and bagged.

Another process used to produce synthetic yellow is the aniline process, which employs both organic andinorganic raw materials. Nitrobenzene and scrap iron raw materials undergo an oxidation-reductionreaction in which the nitrobenzene is reduced to aniline while the metallic iron is oxidized to iron oxidepaste. The aniline is subsequently removed from the paste, which is then purified, filtered, dried, groundand bagged for sale.

Four different methods are available for the manufacture of red oxide pigments:

● Two-stage calcination of ferrous sulfate to copperas red ferric oxide

● Thermal dehydration of yellow iron oxide to yield ferrite red

● Precipitation from ferrous sulfate solution, usually in the presence of oxygen and metallic iron



● Oxidation of synthetic black iron oxide

The two-stage calcination to copperas (ferrous sulfate heptahydrate, FeSO4·7H2O), a by-product in thesulfate process of manufacture of titanium dioxide pigment, involves dehydration followed by high-temperature calcination:

6 FeSO4 • H2O 2 Fe2O3 + Fe2(SO4)3 + 3 SO2-H2O

∆

FeSO4 • 7 H2O FeSO4 • H2O + 6 H2O ∆

The second stage may occur in the absence of air:

Fe2(SO4)3 Fe2O3 + 3 SO3∆

or in the presence of air:

2 Fe2(SO4)3 2 Fe2O3 + 6 SO3

∆

6 FeSO4 • 6 H2O + 11/2 O2 Fe2O3 + 2 Fe2(SO4)3 + 6 H2O∆

The second route to red oxide pigments, the thermal dehydration of synthetic yellow to ferrite red, yieldsred oxide particles that are acicular (needle-shaped), rather than spheroidal like copperas red particles.This difference in particle shape results in a yellowish red color.

Red oxides manufactured by precipitation from ferrous sulfate solution require growth of iron oxideparticles on nucleating crystals or seeds under stringently controlled precipitation conditions. (Undernormal conditions yellow, rather than red, oxides are produced.)

Black iron oxide, Fe3O4 or FeO.Fe2O3, may be calcined at high temperature to oxidize the FeO andchange the color from black to red. The original cubical shape of the black iron oxide particles ismaintained during the calcination and an extremely pure red iron oxide results.

Synthetic black iron oxide, which is manufactured in both cubical and acicular forms, is produced in thecubical form using methods similar to those used to make yellow oxides, such as the precipitationmethod, in which a black intermediate is precipitated from an alkaline aqueous ferrous salt solution. Theferrous hydroxide formed is aerated and heated to oxidize the iron precipitate and yield black iron oxide,as shown in the following reaction:

6 Fe(OH)2 + O2 2 Fe3O4 + 6 H2O

The majority of the synthetic black iron oxide is produced in the cubical form. Because the acicular formis more expensive to produce, it is used primarily in applications that make use of its high magneticstrength (e.g., magnetic ink).



The acicular form of black iron oxide pigment is manufactured by chemical reduction of synthetic ferritered. This aniline process, described in the section on yellow iron oxide, is the major process usedworldwide to produce synthetic black iron oxide.

A variety of black shades may be obtained using any of these production methods. The particle sizedetermines the resultant shade. However, only the cosmetics industry evaluates quality on the basis ofshade. All other industries are more concerned with pigment strength.

CHROME PIGMENTS

Lead chromate pigments, like many other inorganic pigments, are manufactured by precipitation. Keyfactors involved in the precipitation process include the purity of raw materials, the concentration andaddition sequence of the reactants, the flow rate of the reactants, the temperature during precipitation, therate of slurry agitation, the presence of particle-size control agents and the time of reaction.

Precipitation is followed by drying and grinding without a calcination step. For some lead chromates, theprecipitation step is followed by use of selected chemical additives to improve properties of the finalproduct and to permit production of many different grades of yellow and orange colorants.

The starting materials used to produce lead chromates include a soluble lead salt (usually a nitrate) plussodium chromate or dichromate as well as acids and alkalies. Chrome yellow is precipitated with eitheralkaline chromate or acidic dichromate as follows:

Pb(NO3)2 + Na2CrO4 PbCrO4 + 2 NaNO3

2 Pb(NO3)2 + H2O + Na2Cr2O7 2 PbCrO4 + 2 NaNO3 + 2 HNO3

In the second equation, production of nitric acid and the resultant acidification of the pigment slurryincreases the solubility of lead chromate. Redissolving the chromate allows growth of larger pigmentparticles. However, redissolving is not practiced by the largest producer in the United States. Thispigment particle growth is limited by the addition of lead carbonates or phosphates. Proper control ofparticle size enhances uniformity in hiding power, color intensity and tint of a pigment.

Medium yellow, essentially pure chromate, is produced directly in the reactions above. Primrose and lightyellow, however, are prepared by coprecipitation of lead chromate with lead sulfate and/or with leadcarbonate. The light yellow is precipitated at high temperatures while primrose is processed at lowerheats. Chrome oranges are precipitated under alkaline conditions. The degree of alkalinity determines theparticle size and, thus, the hue, of the final product.

Molybdate orange is manufactured by the addition of a solution of sodium chromate, sodium molybdateand sodium sulfate to a solution of lead nitrate under carefully controlled conditions. The resulting solidsolution is a coprecipitate of lead chromate, lead molybdate and a small amount of lead sulfate. After-treatments, such as application of a silica coating or addition of aluminum, antimony and/or titaniumhydroxides, are used to augment stability, similar to the treatments used in the production of chromeyellow and orange.

Chromium oxide greens are calcined pigments prepared by the reduction of sodium bichromate withsulfurous and/or carbonaceous materials. The chemical reactions are as follows:



Cr2O3 + N2 + 4 H2O(NH4)2Cr2O7

∆Na2Cr2O7 + (NH4)2SO4 (NH4)2Cr2O7 + Na2SO4

The product is filtered, washed, dried and pulverized.

The method of manufacture for hydrated chromium oxide greens is hydrolyzation of a complex chromiumborate formed by heating sodium bichromate with boric acid at high temperatures. Chrome greens, blendsof chrome yellows and iron blues, are prepared by blending dry pigments, by slurrying together wetyellows and blues or by precipitating lead chromate in the presence of an iron blue suspension. Normallead silicochromates are prepared by coating a core of silica with medium yellow lead chromate.

COMPLEX INORGANIC PIGMENTS

The first step in the production of complex inorganic color pigments (formerly known as mixed-metaloxides) is the selection and mixing (may be dry or wet) of the appropriate raw materials. The mixture isthen calcined at high temperature (660-1,400°C). The high temperature not only provides the requiredenergy for the reaction, but also stabilizes the final product, making it useful for high-temperatureapplications. After firing, the pigment is milled to yield a fine powder.

Calcined complex inorganic color pigment oxides are products of both solid-state reactions and the wetchemical precipitation methods basic to the production of most pigments, although solid-state reactionsare the method of choice in the United States.

CADMIUM PIGMENTS

Although various pigment manufacturers have developed proprietary methods of producing specificcadmium colorants with particular properties, these methods tend to be variations on a single standardprocess.

Either cadmium sulfate or cadmium nitrate (bought in bulk or made by the pigment manufacturer fromcadmium metal or cadmium oxide and the appropriate acid) is the usual starting material in the productionof cadmium pigments. An aqueous solution of sodium (or other) alkali sulfide is introduced to precipitatecadmium sulfide in cubic crystallographic form. Cadmium sulfoselenides are produced by mixingcadmium sulfide with an alkaline sulfide-selenide. In either case, after washing and drying, theprecipitates are in the form of fine color particles. At this stage of manufacture the particles are too fine tohave pigmentary properties. The brilliant colors of the cadmium pigments develop during the followingcalcination step at 500-700°C when the pigment material is converted from the cubic to the more stablehexagonal structure and the particles grow larger. After calcination, the pigments are flushed with weakhydrochloric acid to remove soluble cadmium and then again washed and dried in filter presses. The finalfilter cake is disaggregated for the marketplace or for further processing.

Cadmium lithopones are usually produced by one of two methods. In the first, barium sulfate ismechanically blended with the cadmium pigment after it has been calcined. Because of their similarparticle size and specific gravity, the two substances tend to mix well. In the alternative method, barium,in the form of barium sulfide, is added at a much earlier stage of the process to insure efficient mix. It isadded to the starting cadmium sulfate (or nitrate) in place of some of the sodium sulfide. Coprecipitationof cadmium sulfide and barium sulfate occurs. The entire coprecipitate, which contains approximately



62% barium sulfate by weight, is then calcined. The final product is a homogeneous powder, whoseopacity and color are determined by the particle size.

The calcination step is a particularly important part of cadmium pigment manufacture, for it is at thisstage that the crystal structure is changed to yield a pigment of bright color. Thus, careful process controlis required not only at the precipitation stage but also throughout the calcination process. It is thiscalcination that is responsible for the stability of cadmium pigments at temperatures of up to 800-900°C.

SUPPLY AND DEMAND BY REGION

UNITED STATES

Iron Oxide Pigments

Producing companies

Iron oxide producers illustrate the diverse nature of pigment producers; they range from major chemicalcompanies to small independent colorant operations and iron ore mining companies.

The following table lists natural iron oxide–producing companies, plant locations and specific pigmentsproduced:

U.S. Producers of Finished Natural Iron Oxide Pigments—April 2001a

Umber(brown)

Sienna

Natural Metallic Burnt Raw OcherCompany andPlant Location

Black(PBk-11)

Re(PR-102)

Brown(PBn-7)

Burnt(PBn-7:x)

Raw(PBn-7:x)

(red)(PR-101)

(yellow)(PY-42)

(yellow)(PY-43)

Arizona Oxides LLCEl Mirage, AZ X X

Blue Ridge Talc Co. Inc.Henry, VA X

Dynamic Color Solutions, Inc.Milwaukee, WI X X X

Elementis plcElementis Pigments

Easton, PA X X XEast St. Louis, IL X X

Hoover Color CorporationHiwassee, VA X X X X X X X X

New Riverside OchreCompany, Inc.

Cartersville, GA X X X



U.S. Producers of Finished Natural Iron Oxide Pigments—April 2001a (continued)

Umber(brown)

Sienna

Natural Metallic Burnt Raw OcherCompany andPlant Location

Black(PBk-11)

Re(PR-102)

Brown(PBn-7)

Burnt(PBn-7:x)

Raw(PBn-7:x)

(red)(PR-101)

(yellow)(PY-42)

(yellow)(PY-43)

Pea Ridge Iron Ore CompanySullivan, MO X

The Prince ManufacturingCompany

Bowmanstown, PA X X XQuincy, IL X X X

Rockwood Specialties Inc.Rockwood Pigments Inc.

Beltsville, MD X XDavis Colors

Los Angeles, CA X X X X X X a. Typically, pigment producers are also resellers, offering for sale a broader pigment line than they produce.


Since 1997, the following changes have occurred among U.S. natural iron oxide pigment producers:

● Soloman Colors sold its natural pigments manufacturing business to The Prince ManufacturingCompany in 1999.

● In 1999, Arizona Oxides merged with Cathay Pigments.

● Laporte Pigments Corporation was purchased by K-L Holdings in November 2000. LaportePigments Corporation was renamed Rockwood Specialties.

● In early 1997, Arizona Oxides LLC began the production and sales of natural iron oxide pigmentsfrom a hematite mine in southwest Arizona. The company also upgrades imported synthetic ironoxide pigments.

● Harcross Pigments Inc. became Elementis Pigments in 1997.

Four U.S. companies are vertically integrated iron oxide pigment producers, capable of mining the oreused to produce pigments: Arizona Oxides, Hoover Color, New Riverside Ochre and Pea Ridge Iron Ore.Arizona Oxides in Arizona, New Riverside Ochre in Georgia and the Hoover Color in Virginia each mineand produce ocher pigments. New Riverside Ochre receives some of its natural red pigment supply fromthe Alabama Pigment mine in Dudley, Alabama, which it owns.



U.S. producers of synthetic iron oxide pigments are listed in the following table:

U.S. Producers of Finished Synthetic Iron Oxide Pigments—April 2001a

Company andPlant Location

Black(PBk-11)

Brown(PBn-6)

Red(PR-101)

Yellow(PY-42)

Tan(PBn-11)b

Bayer CorporationCoatings and Colorants Division

New Martinsville, WV X X X X X

Elementis plcElementis Pigments Inc.

Colton, CA X X X XEaston, PA X X X XEast St. Louis, IL X X X X

BFGoodrich Performance Materialsc

Cincinnati, OH XNewark, NJ X X

Hoover Color CorporationHiwassee, VA X

Rockwood Specialties Inc.Davis Colors

Los Angeles, CA X X X

Mapico, Inc.St. Louis, MO X X X

Mineral PigmentsBeltsville, MD X X X X

The Prince Manufacturing Companyd

Quincy, IL X X

Geo. B. Smith Color Corporationd

Kirkland, IL X

Solomon Grind-Chem Service, Inc.d

Solomon Colors DivisionSpringfield, IL X X X X

a. In addition to the companies listed, Hoover Color Corporation manufactures PBn-9, a synthetic

product that is a color duplicate of natural Van Dyke brown (an imported product).

b. This is not an iron oxide pigment but rather a ferrite containing zinc oxide or magnesium oxide.

c. Company produces transparent grade only.

d. Some synthetic iron oxide pigments may be resold.




Since 1997, the following changes have occurred among U.S. synthetic iron oxide pigment producers:

● In March 1998, the Freedom Chemical Company, (formerly Hilton Davis Company) wasacquired by BFGoodrich Company. The business was integrated into existing BFGoodrichspecialty additives businesses. In late 2000, the pigments business along with the performancematerials segment was subsequently acquired by a private investment group consisting of AEAInvestors Inc., DLJ Merchant Banking Partners and DB Capital Partners. BFGoodrichPerformance Materials is now a privately-owned, independent company.

Salient statistics

Iron oxide pigment salient statistics for 1999 are estimated as follows:

U.S. Salient Statistics for Iron Oxide Pigments—1999(thousands of metric tons)

Production Imports ExportsApparent

Consumption

Natural Synthetic Natural Synthetic Natural Synthetic Natural Synthetic

84.6 85.5 7.4 77.6 neg 13.8 92.0 149.3

Total 170.1 85.0 13.8 241.3 SOURCE: CEH estimates.

Historical tonnage sales data for finished iron oxide pigments from U.S. producers are presented in thefollowing table:

U.S. Sales of Finished Iron Oxide Pigments from U.S. Producers(thousands of metric tons)

Brown Red

Naturalab Synthetic Natural Synthetic

1960 8.8 1.9 16.2 41.1

1965 22.7 3.6 29.6 27.4

1970 15.1 4.3 25.2 26.6

1975 14.2 5.2 26.4 18.7

1980 12.2 9.3 30.6 29.01981 16.5 10.2 25.2 29.41982 13.3 9.7 19.1 22.11983 4.3c 12.7 20.7 27.71984 4.5c 14.8d 23.0 30.3

1985 4.5c 16.8d 24.0 30.61986 3.0c 18.3 21.0e 32.81987 na 22.0d 22.0 33.41988 na 24.2d 23.5 34.11989 na 23.6d 26.4 32.7



U.S. Sales of Finished Iron Oxide Pigments from U.S. Producers (continued)(thousands of metric tons)

Brown Red


1990 na na 26.8 32.51991 na 8.0f 25.6 28.31992 na 8.7f 27.3 27.41993 na 7.0f 28.3 na1994 na 6.1f 32.0 na

1995 2.0c na 49.3 na1996 na 7.8 49.6 na1997 2.1 10.0 53.6 na1998 2.3 9.8 54.6 na1999 2.4 9.4 55.7 na

U.S. Sales of Finished Iron Oxide Pigments from U.S. Producers (continued)(thousands of metric tons)

Yellow Blackg

Natural Synthetic Natural Synthetic Unspecified Totalbh

1960 4.4 13.0 -- 1.9 2.6 89.9

1965 4.2 18.5 -- 2.4 7.0 115.4

1970 4.8 22.8 -- 5.7 7.6 112.1

1975 4.4 17.5 -- -- 8.4 94.7

1980 5.3 19.7 -- 4.9 12.6 123.61981 4.8 21.7 -- 5.5 14.9 128.21982 4.6 18.5 -- 6.1 11.9 105.31983 15.1i 21.9 -- 4.6 4.5 111.41984 16.0i 19.5 -- 4.8 4.6 117.5

1985 13.4i 16.4 -- 4.9 4.3 115.01986 --j 22.4f -- 5.8 13.0 116.41987 na 24.3f -- 5.7 16.8 124.21988 na 22.7f -- 6.4 15.8 126.61989 na 21.9f -- 10.3 12.7 127.6

1990 na 18.1 -- 25.8ef 23.6 126.81991 na 16.4 -- 15.3 23.6 117.21992 na 16.7 -- 16.2 24.9 121.31993 na na -- 17.5 72.8 125.61994 na na -- 17.0 83.8 138.9

1995 na 18.8 -- 29.6 45.3 145.01996 na 23.6 12.7 21.0 48.3 163.01997 na 25.7 15.4 20.1 49.1 176.01998 na 25.2 15.4 21.0 51.7 180.01999 na 25.5 21.0 26.5 53.5 194.0



a. Amounts reported in this column exclude Van Dyke brown, an imported crude pigment processed

and sold in the United States.

b. Data for 1960-1963 are not directly comparable with later years due to reclassification ofpigments.

c. Sales of brown iron oxide have been withheld by the source to avoid disclosing companyproprietary data. Data include reported sales of natural umbers only.

d. Includes data for synthetic black iron oxide.

e. Includes data for natural yellow iron oxides.

f. Includes data for mixtures of natural and synthetic and specialty iron oxides.

g. Data include precipitated magnetic black from 1960 to 1963. Beginning in 1974, data forprecipitated magnetic black were combined by the source with data for brown iron oxides. Datainclude black magnetite in 1960, 1961, 1976-1984 and 1995. From 1962 to 1975, data for blackmagnetite were combined by the source with data for brown iron oxides.

h. Totals may not equal the sums of the categories because of rounding.

i. Includes data for natural brown iron oxides.

j. Data were combined with natural red iron oxides.

SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior, Bureau of Mines (data for1960; data for SYNTHETIC BROWN, RED, YELLOW, BLACK andUNSPECIFIED for 1965-1984 except NATURAL YELLOW and TOTALYELLOW for 1984; all data for 1985-1992).

(B) Mineral Industry Surveys, U.S. Department of the Interior, Bureau of Mines (datafor 1992-1993).

(C) Mineral Industry Surveys, U.S. Department of the Interior, U.S. Geological Survey(data for 1994-1999).

In 1999, the United States sales of finished iron oxide pigments from U.S. producers was 194.0 thousandmetric tons (including U.S. production sold domestically and imports for consumption). The followingtable shows the total U.S. sales of natural and synthetic iron oxide pigments from U.S. producers since1980:



U.S. Sales of Finished Iron Oxide Pigments from U.S. Producers(thousands of metric tons)

Naturala Synthetic Total

1980 53.0 70.7b 123.61981 52.1 76.1b 128.21982 43.1 62.2b 105.31983 44.6 66.8 111.41984 48.3 69.2 117.5

1985 46.9 68.1 115.01986 42.8 73.6 116.41987 27.8 96.5 124.31988 29.8 96.8 126.61989 49.4 78.3 127.7

1990 48.6 76.4 125.01991 49.2 68.1 117.21992 52.3 69.0 121.31993 55.8 69.8 125.61994 68.7 70.2 138.9

1995 76.2 68.8 145.01996 75.0 88.0 163.01997 81.0 95.0 176.01998 84.0 96.0 180.01999 92.0 102.0 194.0 a. Includes some nonpigmentary consumption for all years.

b. Data include mixtures of brown synthetic and natural iron oxides.In 1983-1984, these mixtures are included in the brown syntheticiron oxides data.

SOURCES: (A) Minerals Yearbook, U.S. Department of theInterior, Bureau of Mines (data for 1980-1991).

(B) Mineral Industry Surveys, U.S. Department of theInterior, Bureau of Mines (data for 1992-1993).

(C) Mineral Industry Surveys, U.S. Department of theInterior, U.S. Geological Survey (data for 1994-1999).

The following table shows historical annual dollar sales values for U.S. producers by type of iron oxidepigment since 1960:



U.S. Sales Values of Finished Iron Oxide Pigments from U.S. Producers(millions of dollars)

Brown Red


1960 1.21 0.60 1.10 10.03

1965 3.49 1.88 1.99 8.21

1970 3.25 1.73 2.16 8.51

1975 4.07 4.49 2.72 13.93

1980 5.22 10.82 3.78 34.791981 6.87 12.60 3.79 40.011982 6.26 13.48 3.09 31.791983 6.41 18.20 4.11 38.951984 3.81c 22.13d 4.91 45.40

1985 4.12c 25.57d 4.82 47.051986 2.99 28.10d 3.61e 49.781987 na 34.34d 3.61 52.901988 na 39.02d 4.06 56.501989 na 36.05d 4.71 50.83

1990 na na 4.74 54.241991 na 15.07f 5.18 50.531992 na 15.82f 16.56 49.571993 na 13.20 5.40 na1994 na 11.60 6.20 na

1995 na na 9.60 na1996 2.1 14.7 9.7 na1997 2.8 18.9 11.2 na1998 3.1 18.0 10.9 na1999 3.3 17.1 11.7 na

May 2001 PIGMENTS Pigments575.0002 A


U.S. Sales Values of Finished Iron Oxide Pigments from U.S. Producers (continued)(millions of dollars)

Yellow Blackg

Natural Synthetic Natural Synthetic Unspecified Totalbh

1960 0.34 3.49 -- 0.6 0.52 17.89

1965 0.40 5.53 -- 0.9 1.12 23.53

1970 0.51 8.00 -- 1.4 2.56 28.12

1975 0.78 14.00 -- -- 6.15 46.14

1980 1.25 21.42 -- 0.6 19.09 96.971981 1.11 25.98 -- 0.9 19.44 110.701982 1.10 24.37 -- 1.0 26.89 107.981983 1.70 30.08 -- 0.8 10.18 110.431984 5.21i 27.43 -- 0.9 12.59 122.38

1985 4.72i 24.23 -- 0.9 11.31 122.721986 -- j 36.29f -- 1.1 4.52 126.391987 na 36.57f -- 1.1 7.85 136.371988 na 34.59f -- 1.2 8.14 143.511989 na 33.63f 2.1 7.22 134.57

1990 na 29.12 -- 41.0 10.00 139.131991 na 28.18 -- 23.0 10.84 132.891992 na 28.34 -- 25.5 11.28 147.081993 na na -- 27.80 93.70 140.101994 na na -- 27.50 97.70 143.00

1995 na 32.60 -- 29.60 75.20 147.001996 na 42.4 2.1 37.8 74.2 183.01997 na 44.4 3.0 34.5 54.2 169.01998 na 43.1 2.9 38.0 77.0 193.01999 na 45.4 3.7 43.9 81.9 207.0 a. Values reported in this column exclude the value of imported Van Dyke brown.

b. Data for 1960-1963 are not directly comparable with later years due to reclassification of pig-ments.

c. Value of brown iron oxide was withheld by the source to avoid disclosing company proprietarydata. The source included brown value with natural yellow.

d. Includes data for synthetic black iron oxide.

e. Includes data for natural yellow iron oxide.

f. Includes data for mixtures of natural and synthetic and specialty iron oxides.

g. Data include precipitated magnetic black for 1960. Beginning in 1974, data for precipitatedmagnetic black were combined by the source with data for brown iron oxides. Data include blackmagnetite in 1960, 1984 and 1995. From 1965 to 1975, data for black magnetite were combinedby the source with data for brown iron oxides.

h. Totals may not equal the sums of the categories because of rounding.

i. Includes data for natural brown iron oxides.

j. Data combined with natural red iron oxides.



SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior, Bureau of Mines (all data for1960 and 1985-1991; data for SYNTHETIC BROWN, RED, YELLOW, BLACKand UNSPECIFIED for 1984).

(B) CEH estimates (data for 1963-1984 for NATURAL BROWN, TOTAL BROWNand TOTAL and 1966 datum for BLACK).

(C) Mineral Industry Surveys, U.S. Department of the Interior, Bureau of Mines (datafor 1992-1993).

(D) Mineral Industry Surveys, U.S. Department of the Interior, U.S. Geological Survey(data for 1994-1999.

Consumption

The reported U.S. consumption of U.S.-produced iron oxide pigments by market segment is shown in thefollowing table and pie charts.

U.S. Reported Consumption of U.S.-Produced Iron Oxide Pigments by Market(thousands of metric tons)

Other

Construc-tion

MaterialsSurfaceCoatings

Plastics, Rubber,Paper, Textiles,Glass, Ceramics

Ferrites andOther

MagneticApplications

FoundrySands

Animal Feedand Fertilizers

IndustrialChemicals

Miscel-laneous

1980 27.2 45.7 13.6 11.1 6.2 8.7 8.7 2.51981 24.4 42.3 19.2 15.4 7.7 9.0 7.7 2.61982 21.1 34.7 14.7 13.7 6.3 8.4 5.3 1.11983 29.0 40.1 15.6 na 6.7 6.7 5.6 7.81984 32.9 41.1 12.9 na 5.9 5.9 5.9 12.9

1985 32.2 38.0 13.8 na 6.9 6.9 5.8 11.51986 33.8 38.4 14.0 na 5.8 5.8 7.0 11.61987 39.8 36.0 14.9 na 7.5 5.0 6.2 14.91988 44.3 31.7 21.5 na 7.6 5.1 6.3 10.11989 44.7 30.6 21.7 na 6.4 6.4 6.4 11.5

1990 40.0 30.0 21.3 na 5.0 6.3 7.5 15.01991 37.5 27.0 18.8 na 7.0 7.0 4.7 15.21992 41.2 27.9 20.6 na 7.3 4.9 3.6 15.81993 42.7 23.9 16.3 na 10.0 na 7.5 25.21994 45.8 29.2 16.7 na 11.1 na 8.3 27.8

1995 43.8 29.0 16.7 na 13.1 8.7 na na1996 49.4 36.2 na na 13.0 na 14.7 na1997 51.3 49.5 na na 15.8 na 7.0 na1998 59.6 44.6 18.0 na 12.6 na 10.8 na1999 64.0 45.4 17.5 na 13.5 na 13.5 na SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior, Bureau of Mines (data for 1980-1988).

(B) Mineral Industry Surveys, U.S. Department of the Interior, Bureau of Mines (data for 1989-1993).

(C) CEH estimates based on Mineral Industry Surveys, U.S. Department of the Interior, U.S. Geological Survey(all data for 1994-1999).



U.S. Market for Synthetic andNatural Iron Oxide Pigments—1999

Plastics, Rubber,Paper, Textiles,

Glass, Ceramics7%

Surface Coatings24%

Construction Materials

42%

Other27%

U.S. Market for Natural Iron Oxide Pigments—1999


Glass, Ceramics9%

Surface Coatings13%


22%Other56%



The U.S. market for synthetic iron oxide pigments is as follows:

U.S. Market for Synthetic Iron Oxide Pigments—1999


Glass, Ceramics9%

Surface Coatings13%


22%

Other56%

Construction materials. Construction material producers use iron oxide pigments to color concrete blocksand roofing tiles, bricks, paving stones, stucco and mortar. Growth in this market segment is influencedby the overall cyclicity of construction activity, the increasing popularity of colored building materialsand product innovations. It is estimated that this segment consumed 101 thousand metric tons of syntheticand natural iron oxide pigments from all sources (including imports) in 1999.

The following table shows reported sales of iron oxide pigments by U.S. producers to the constructionmaterials market since 1980:

U.S. Reported Consumption of Iron Oxide Pigments in Construction Materialsa

(thousands of metric tons)

Natural Synthetic Totalb

1980 13.6 14.5 28.11981 10.9 13.6 24.51982 9.1 12.0 21.11983 10.9 18.1 29.01984 13.8 19.1 32.9

1985 14.1 18.1 32.21986 12.0 21.8 33.81987 10.8 29.0 39.81988 13.3 31.0 44.31989 11.2 33.5 44.7

1990 10.8 29.2 40.01991 9.9 27.6 37.51992 10.9 30.3 41.21993 na na 42.71994 na na 45.8

1995 na na 43.81996 14.9 34.5 49.41997 15.4 35.9 51.31998 20.2 39.4 59.61999 19.0 45.0 64.0



a. Includes sales of imported finished iron oxide pigments, but not imported

finished iron oxide pigments sold directly to consumers.

b. Total may not equal the sum of the categories because of rounding. Data mayinclude some mixture of naturals and synthetics.

SOURCES: (A) Minerals Yearbook and preprints, U.S. Department of theInterior, Bureau of Mines (data for 1980-1991).

(B) Mineral Industry Surveys, U.S. Department of the Interior,Bureau of Mines (data for 1992-1993).

(C) Mineral Industry Surveys, U.S. Department of the Interior, U.S.Geological Survey (data for 1994-1999).

The building materials that consume iron oxides include concrete block, brick, mortar, concrete roofingtiles, roofing granules, paving stones, poured concrete and stucco. Concrete block is the largestconstruction material application for natural and synthetic iron oxides. U.S. consumption of natural andsynthetic iron oxides in roofing tiles and paving stones has been growing strongly, but each holds asmaller market share than colored concrete blocks.

Either natural or synthetic iron oxides or pigment blends may be used to color concrete. Most concrete iscolored by adding the iron oxide directly to the wet mix prior to pouring. Red and yellow are the mostpopular colors, followed by brown and black. For black coloration, synthetic iron oxide is used since thetinting strength of natural black is not high enough to achieve satisfactory coloration.

Iron oxide pigments are available in both dry and slurry forms. Slurries can be easier to work with,providing advantages in bulk handling and easier mixing and dust elimination. Free-flowing dry forms ofiron oxide are available for the construction material market. This product reduces dust problems and iseasier to mix.

Of all the segments, the U.S. construction industry has shown the strongest growth since 1995 as housingstarts rose from 1.35 million units to a rate of 1.67 million units in 1999 and home resales and remodelingremained strong. Despite the expected lower construction activity rate of 1.4-1.5 million units, the growthrate for iron oxide pigments in construction for 1999-2004 should only slow or flatten, as productinnovation and more intensive use of pigmented concrete products cause broader use of iron oxidepigments.

Surface coatings. It is estimated that this segment consumed 57 thousand metric tons of synthetic andnatural iron oxide pigments from all sources (including imports) in 1999.

The following table shows the consumption of iron oxide pigments (including imports) per segmentwithin the surface coatings market:



U.S. Consumption of Iron Oxide Pigmentsfor Surface Coatings—1999

(percent)

Product Finishes, OEMsa 46Architectural Coatingsb 37Special-Purpose Coatingsc 17

Total 100% a. Includes automotive topcoats, primers and underbody

components and parts; machinery and equipment;sheet, strip and coil; metal furniture and fixtures.

b. Mainly exterior, water-based flat house paints, stainsand trim; interior, water-based flat and semiglosspaints.

c. Mainly for maintenance and auto refinishing.


The following table reports the sales of iron oxide pigments by U.S. producers to the surface coatingsmarket since 1981:

U.S. Producer’s Sales of Iron Oxide Pigments for Surface Coatings(thousands of metric tons)

Natural Synthetic Totala

1981 12.7 30.8 43.51982 10.0 24.5 34.51983 10.9 29.0 39.91984 11.8 29.9 41.7

1985 10.0 26.3 36.31986 8.2 29.9 38.11987 8.2 27.2 35.41988 7.3 24.5 31.81989 8.3 22.3 30.6

1990 8.2 21.8 30.01991 7.3 19.6 26.91992 8.0 19.9 27.91993 8.4 15.4 23.81994 12.0 17.0 29.0

1995 17.0 12.0 29.01996 9.7 26.5 36.21997 9.8 39.7 49.51998 10.9 33.7 44.61999 13.8 31.6 45.4 a. Totals may not equal the sums of the categories because of rounding.



SOURCES: (A) Based on Minerals Yearbook and preprints, U.S.Department of the Interior, Bureau of Mines (data for1981-1991).

(B) Based on Mineral Industry Surveys, U.S. Department ofthe Interior, Bureau of Mines (data for 1992-1993).

(C) Based on Mineral Industry Surveys, U.S. Department ofthe Interior, U.S. Geological Survey (data for 1994-1999).

Although synthetic iron oxides are the preferred pigment in the paints and coatings industry, there is still asignificant market for natural iron oxides in paints, particularly in primers and undercoats, where colorconsistency is less critical. Primers function not only to promote adhesion but also to provide protectionagainst corrosion. An iron oxide known for its anticorrosive properties is micaceous iron oxide (minedfrom micaceous hematite); it has protective properties because of the thin, platelike shape of its particles.When a micaceous iron oxide paint is applied to a surface, the thin platelets orient themselves in a planeparallel to the substrate, thus providing a barrier to moisture and corrosive ions. Micaceous iron oxidehelps to protect the paint binder from ultraviolet radiation.

Although micaceous iron oxide has been used for decades in Europe on bridges and other metallicstructures, its use in the United States is relatively recent. Some examples of uses include roof coatingsand structural steel coatings on highway bridges.

Synthetic iron oxides are among the most useful pigments to formulators of paints and coatings. Sincethese pigments are manufactured under controlled conditions, the particle size, distribution and shape canbe accurately duplicated, resulting in reproducible colors. The easily dispersible synthetic yellow and rediron oxides are the most frequently used iron oxide pigment in paints. Blacks and browns are of lessimportance.

Transparent (low-opacity) synthetic iron oxides are a small-volume, additional specialty product groupused in the paints and coatings industry. They are of extremely fine particle size and have low coveringpower, but are ideal for covering metallized finishes requiring long durability. Most of the transparentoxides find use in OEM automotive topcoat finishes and automotive repair finishes. In the United States,a small percentage is used for wood stains and OEM furniture finishes. The total estimated U.S. marketfor transparent iron oxides has remained relatively flat for the last decade. The U.S. market for transparentiron oxides is estimated to have been about one thousand metric tons in 1999. Currently, the world marketis served by two producers: BASF Aktiengesellschaft in Europe and the Hilton-Davis Company in theUnited States.

Growth in the consumption of natural and synthetic iron oxides depends upon growth in the surfacecoatings market, the loadings of iron oxide pigments in paints and product innovations. One new productto emerge over the last few years is a chipped wood landscaping product that is colored red with an ironoxide-based coating. This application has quickly grown to use nearly 10 thousand metric tons per year. Itcan utilize waste wood and uses primarily low-cost imported pigments.

Over the past several decades, surface coatings consumption growth has tended to follow the growth inthe overall manufacturing economy, but this parallel to the growth in GDP may become disconnected asthe U.S. economy has become increasingly characterized by service industries.



Plastics, rubber, paper, textiles, glass and ceramics. It is estimated that this segment consumed about17.5 thousand metric tons of synthetic and natural iron oxide pigments from all sources (includingimports) in 1999, in order of rank, by the plastics, glass and ceramics, paper and textiles, and rubberindustries. A quantitative consumption breakdown for this group by application is not available.However, reported sales by U.S. producers are as follows:

U.S. Consumption of Iron Oxide Pigments for Plastics,Rubber, Paper, Textiles, Glass and Ceramics


Natural Synthetic Totala

1980 4 9 141981 7 12 191982 6 9 151983 6 9 151984 5 7 13

1985 5 8 141986 5 8 141987 5 10 151988 8 13 211989 11 11 22

1990 10 11 211991 9 10 191992 11 10 211993 7 10 161994 8 8 17

1995 7 9 171996 na 8 na1997 na na na1998 na na 18.01999 6.3 11.2 17.5 a. Total may not equal the sum of the categories because of rounding.

Data may include some mixture of naturals and synthetics.

SOURCES: (A) CEH estimates based on Minerals Yearbook and pre-prints, U.S. Department of the Interior, Bureau ofMines (data for 1980-1991).

(B) CEH estimates based on Mineral Industry Surveys,U.S. Department of the Interior, Bureau of Mines(data for 1992-1993).

(C) CEH estimates based on Mineral Industry Surveys,U.S. Department of the Interior, U.S. Geological Sur-vey (data for 1994-1999).

Natural iron oxides (96% Fe2O3) are used as rouge in flat glass batches to impart a greenish cast.Synthetic red is often used as a stain to color glass and ceramic bodies or as a component of decorativeglazes. The addition of Fe2O3 to molten glass results in the presence of ferric and ferrous ions in thesolution. The ferric ions in conjunction with oxygen result in green coloration, and a preponderance offerrous ions, in conjunction with oxygen, leads to a yellow-brown colorant.



Following titanium dioxide, iron oxides are the inorganic pigments used most in plastics. (The ratio ofTiO2 use to iron oxide use is about 30:1.) In 1999, the plastics industry was believed to have used asmuch as 7-8 thousand metric tons of iron oxide pigments. Estimating the market for iron oxides in theplastics industry is difficult because manufacturers of formulated colorants for the plastics industry alsoproduce fiber concentrates for the textile industry.

Natural iron oxides are used less often than synthetics in plastics. In addition to their low tinting strength,the presence of higher quantities of impurities can catalyze resin degradation in some plastics. In phenolicresins, however, natural siennas, ochers and umbers can be used. Burnt umber is frequently used to give abrown tint to phenolic resin–based electrical components.

Synthetics sometimes are combined in plastics with other, brighter pigments to attain the required color.Synthetic reds are often used because they are the most thermally stable. Yellows tend to change color tored at high temperatures and, thus, must be baked at comparatively lower heats. Yellows can be safelyincorporated into polyethylene. Black, too, tends to oxidize to red at high temperatures, although it is alsosafe in polyethylene. Both yellow and red are strong absorbers of ultraviolet radiation, slowing thebreakdown of the polymers and, thus, prolonging the life of the plastic products. Synthetic brown (a blendof red, yellow and black) is frequently used in plastics, particularly for simulated leather or for producingwood grain effects.

Overall, resins for which iron oxide coloration is appropriate include the thermoplastics—polyethylene,polypropylene, polystyrene and polyvinyl chloride (PVC)—and the thermosets. Polyethylene trash bagsare a growing end-use application for iron oxides. Hefty® plastic bags, which are green, contain yellowiron oxide and phthalo blue (an organic pigment), while the more recently available red polyethylene bagsare colored only with iron oxide.

Iron oxide pigments for plastics (or textile) use are generally not sold directly by the producer to eitherresin manufacturers or plastics fabricators. Instead, the pigments are marketed to independentformulators. They in turn manufacture color systems, which often contain other plastics additives such asmodifiers and fillers, to be marketed to plastics fabricators. The colorants may be provided asconcentrates (pellets, granules and powders), dry pigments, encapsulates, paste dispersions or liquids.Concentrates, which are concentrated mixtures of colorant in resin, are overwhelmingly the formpreferred by fabricators.

The consumption of iron oxides in paper, textiles and rubber is believed to be small. Synthetic brown isused in kraft paper and paperboard for food applications (e.g., candy box inserts) and in some other foodwrapping materials. Iron oxides are used to some extent in textile applications because of theirlightfastness and resistance to heat, solvents and alkalies. However, because of their weak tinctorialstrength and drab shades, other pigments (and dyes) are usually preferable. Synthetic reds, browns andyellows are used in rubber, but no quantifiable information is available.

The combined average annual growth rate for iron oxides in plastics, rubber, paper, textiles, glass andceramics is 1.5-2.0% for 1999-2004. At this rate of growth, 2004 consumption would total about 19thousand metric tons.

Other. There are several iron oxide markets, some of which are nonpigmentary, for which littleinformation is available.

Foundry sands consumed about 14 thousand metric tons of natural red iron oxides in 1999. These sandsare granular materials, primarily silica, that are mixed with binders to make molds for casting metals. At



least 60% of U.S. foundries are believed to add iron oxides to foundry sands. The average addition ofoxide to sand mixture is between 1% and 2%. Although many reasons are given for these additions, themost important is the reduction of veining and gas defects in the final product.

About 9 thousand metric tons of iron oxides were consumed in animal feed and fertilizers in 1999. Mostof this consumption was natural iron oxides. However, natural oxides can be used only in large-animalfeeds, so there is a small market for synthetics as a colorant in small-animal feeds. All fertilizerconsumption was of natural oxides. Consumption has been growing slowly in this application for the pastdecade and is expected to remain fairly flat from 1999 to 2004.

Industrial chemicals, particularly catalysts, also consume small quantities of both natural and syntheticoxides. Iron oxide can be used as a dehydrogenation catalyst as well as function as the base material forformulated catalyst products.

About 9 thousand metric tons of iron oxides were used in the production of industrial chemicals in 1999,primarily as catalysts in the production of styrene. Iron oxide is also used as a catalyst in the conversionof butenes to butadiene.

Among the miscellaneous applications for iron oxide pigments are jeweler’s rouge, printing ink, includingthe synthetic black pigments in the ink used for printing all U.S. currency and artist’s colors. In the artist’scolors segment, it is believed that use of natural iron oxides greatly exceeds that of synthetics.

Synthetic iron oxides have FDA approval for use in food contact and special grades are available for usein cosmetics, food additives and pharmaceuticals. The primary pharmaceutical application is as a colorantfor capsules. Iron oxides are also used to color surgical gloves.

Price

The following table presents recent U.S. prices for iron oxide pigments:

U.S. Prices for Finished Iron Oxide Pigments(dollars per pound)

1990a

Low High 1997 1999

BlackNatural -- 0.2700 na naSynthetic 0.6900 0.9000 1.08 0.60Micaceous -- 0.6875 na na

RedDomestic Primer, Natural, Micronized

-- 0.2875 na na

Pure, Synthetic -- 0.7400b 0.36 0.33Spanish -- 0.3350c na na

YellowSynthetic -- 0.8800b 0.46 0.39Ocher, Domestic -- 0.2700d na na

a. Bulk truckload shipments, FOB U.S. origin, unless otherwise noted.

b. Carload shipments of bagged material.



c. Carload shipments, 50 pound bag, New York warehouse.

d. Prices are for one short ton minimum, bagged material.

SOURCES: (A) American Paint & Coatings Journal (data for 1990).

(B) U.S. Imports, U.S. Department of Commerce, Bureau of theCensus, Unit Import Values (data for 1997 and 1999).

Trade

Imports. In 1999 reported U.S. imports of synthetic iron oxide pigments were over 85 thousand metrictons, the highest annual quantity on record. Reported quantities are thought to be inflated, as some of theimports are thought to be regenerator or magnetic oxides, not exclusively pigments.

U.S. import data are shown in the following table:

U.S. Imports of Iron Oxide Pigmentsa

Natural Synthetic Totalb

Thousands ofMetric Tons

Millions ofDollars


Millions ofDollars

Thousands of Metric Tons

Millions ofDollars

1960 6.2 0.3 6.8 1.1 13.0 1.4

1965 6.7 0.4 9.2 1.7 15.9 2.1

1970 7.3 0.4 21.9 5.3 29.2 5.7

1975 5.3 0.7 19.9 8.4 25.1 9.1

1980 5.0 1.1 30.2 18.7 35.2 19.81981 6.4 2.0 28.6 16.5 35.0 18.51982 4.4 1.3 18.7 11.9 23.0 13.21983 7.6 1.7 20.3 15.0 27.9 16.71984 7.4 1.8 27.2 19.7 34.7 21.5

1985 5.8 1.6 30.1 21.0 36.1 22.61986 7.3 2.1 26.1 19.4 33.4 21.51987 8.7 2.4 29.7 18.2 38.4 20.71988 7.7 2.1 31.2 25.0 38.9 27.11989 5.0 1.3 31.7 29.2 36.7 30.5

1990 2.0 1.4 32.1 35.9 34.1 37.31991 3.3 1.6 31.4 37.7 34.7 39.41992 3.4 1.4 41.6 48.5 45.1 49.91993 4.8 1.4 38.8 55.9 43.5 57.31994 6.4 2.1 45.0 59.3 51.4 61.4

1995 6.8 2.6 52.5 75.0 59.3 77.61996 9.4 3.4 53.2 70.6 62.6 74.01997 7.8 3.0 60.4 72.4 68.2 75.41998 4.9 2.4 62.6 61.8 67.5 64.21999 7.4 3.7 77.6 69..3 85.1 73.0 a. Data exclude Van Dyke brown for 1960-1982.



b. Totals may not equal the sums of the categories because of rounding.

SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior, Bureau of Mines (data for 1960-1988).

(B) Mineral Industry Surveys, U.S. Department of the Interior, Bureau of Mines (data for 1989-1993).

(C) Mineral Industry Surveys, U.S. Department of the Interior, U.S. Geological Survey (data for 1994-1995).

(D) U.S. Imports, U.S. Department of Commerce, Bureau of the Census (data for 1996-1999).

In 1999, 51% of the natural iron oxide pigments imported into the United States came from Cyprus whileChina accounted for 52% of the synthetic iron oxide pigment imports.

Import data for synthetic iron oxide pigments are reported by category in the following tables:

U.S. Imports of Synthetic Iron Oxide Pigments(thousands of metric tons)

Black Red Yellow Other Totala

1983 0.46 4.04 6.93 8.85 20.281984 0.56 5.16 11.77 9.74 27.23

1985 0.66 5.19 13.62 10.60 30.071986 0.94 6.34 11.89 6.92 26.081987 4.29 9.90 10.18 5.27 29.641988 5.11 10.12 10.12 5.86 31.211989 7.55 11.60 10.68 1.88 31.71

1990 8.38 11.13 11.94 1.14 32.141991 9.02 12.18 8.92 1.32 31.441992 11.87 17.44 10.30 2.04 41.651993 6.75 16.90 11.90 3.25 38.801994 9.19 16.40 15.80 3.69 45.00

1995 11.00 21.80 14.70 4.95 52.501996 8.80 24.20 15.80 4.40 53.201997 9.9 25.9 19.2 5.3 60.41998 10.2 26.4 22.8 3.1 62.61999 12.0 35.0 28.6 2.0 77.6 a. Totals may not equal the sums of the categories because of rounding.

SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior, Bureau ofMines (data for 1983-1988).





U.S. Imports of Synthetic Iron Oxide Pigments(millions of dollars)

Black Red Yellow Other Totala

1983 0.26 2.73 5.12 6.87 14.981984 0.39 4.63 7.52 7.17 19.72

1985 0.39 2.84 5.77 12.00 21.001986 0.60 2.96 5.52 10.29 19.381987 0.72 3.58 6.84 7.10 18.241988 1.43 4.66 7.85 11.06 25.001989 11.44 4.68 8.59 4.48 29.19

1990 15.30 7.12 10.80 2.69 35.921991 18.68 8.29 8.74 2.04 37.741992 23.23 11.47 10.10 3.68 48.491993 25.10 11.90 12.50 6.50 55.901994 26.10 10.90 16.20 6.01 59.30

1995 30.70 20.90 15.90 7.50 75.001996 25.56 22.22 16.15 6.67 70.601997 23.8 20.4 19.5 8.7 72.41998 16.7 19.0 20.4 5.7 61.81999 15.8 25.7 24.7 3.1 69.3 a. Totals may not equal the sums of the categories because of rounding.

SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior, Bureau ofMines (data for 1983-1988).



In 1999, imports accounted for about one-third of U.S. iron oxide pigment consumption. Much of theU.S. supply of iron oxide pigments originated in China, followed by Germany. Some of these pigmentsare further processed by Bayer at its New Martinsville, West Virginia plant, while the balance is sold toend users and resellers.

Imports will continue to be an important source of the U.S. supply of iron oxide pigments.

Exports. In 1999, U.S. exports of pigment-grade iron oxide were 13.8 thousand metric tons. The majordestinations for 1999 iron oxide exports were Mexico and Japan at 7.7 and 1.7 thousand metric tonsrespectively. Historical export data follow:



U.S. Exports of Pigment-Grade Iron Oxide


Millions ofDollars

1960 3.5 1.0

1965 4.3 1.3

1970 4.2 1.5

1975 8.0 2.3

1980 4.5 8.31981 4.5 10.61982 8.3 16.11983 11.5 18.81984 29.4 28.8

1985 26.9 25.01986 26.1 27.91987 20.1 28.81988 22.0 29.91989 10.0 15.7

1990 9.5 18.71991 20.6 33.81992 21.1 32.21993 22.4 32.01994 21.3 30.7

1995 17.5 24.91996 14.8 22.51997 16.6 20.61998 14.6 18.21999 13.8 15.2 SOURCES: (A) Minerals Yearbook, U.S. Department of the Interior,

Bureau of Mines (data for 1960-1988).



Chrome Pigments

Producing companies

The following table lists the U.S. producers of the major chrome pigments, their plant locations andspecific pigments produced:



U.S. Producers of Major Chrome Pigments—April 2001

Lead Chromates Hydrated Chromium

Company and Plant Location

ChromeYellow(PY-34)

MolybdateOrange

(PR-104)

ChromicOxide Green

(PG-17)

OxideGreen

(PG-18)

ZincChromate(PY-36)

Elementis plcElementis Chromium LP

Corpus Christi, TX X X

Engelhard CorporationSpecialty Pigments and Additives

Louisville, KY X X

Nichem Corp.Chicago, IL X X

Rockwood Specialties IncRockwood Pigments Inc

Beltsville, MD X X SOURCE: CEH estimates.

Since 1997, the following changes have occurred among U.S. chrome pigment producers:

● In October 1997, K-L Holdings purchased Laporte Inc’s Mineral Pigments Corporation andchanged its name to Rockwood Specialties Inc. National Industrial Chemical of Chicago, Illinoischanged its name to Nichem Corp.

● In 1997, American Chrome & Chemicals Inc became Elementis Chromium LP.

The 1995 closure of Cookson Pigments’ chrome pigment production reduced U.S. chrome pigmentcapacity by at least 50%. To replace some of the chrome pigment production capacity following theclosure, Dominion Colours of Ajax, Ontario, Canada, expanded its capacity by 65%. The largestremaining U.S. producer is Engelhard Corporation, with an estimated annual capacity of 7 thousandmetric tons. The two remaining lead chromate producers have annual capacities of less than 5 thousandmetric tons each. U.S. chromium pigment production capacity exceeds current production by a multipleof about 3.

Salient statistics

Production of chrome pigments has been declining since the 1980s and is now about 10% that of the1970s. The decrease is caused by increasingly restrictive environmental, health and safety regulations,which in turn have increased production expenses and decreased the allowable uses of chrome- and lead-based pigments.



Historical production data for chrome pigments by volume and value are presented in the following table:

U.S. Production of Chrome Pigments(thousands of metric tons)

Lead Chromates

Chrome Yellowand Orange

MolybdateOrange

ChromeGreena

ChromiumOxide Greenb Totalc

1960 19.4 5.7 2.8 4.7 32.7

1965 26.5 8.6 2.8 5.8 43.7

1970 29.4 10.0 2.3 6.1 47.9

1975 23.7 8.7 -- 5.1 37.4

1980 25.3 8.9 -- 5.2 39.31981 25.4 9.2 -- 4.8 39.51982 18.5 6.0 -- 3.9 28.41983 19.6 5.9 -- 4.7 30.11984 21.2 6.7 -- 7.5 35.4

1985 18.8 5.6 -- -- 24.41986 17.8 5.5 -- -- 23.21987 19.8 5.1 -- -- 24.91988 21.3 5.1 -- -- 26.41989 15.4 4.9 -- -- 20.2

1990 14.7 4.4 -- -- 19.21991 13.5 3.9 -- -- 17.51992 11.6 3.5 -- -- 15.11993 14.1 -- -- 14.1

1994 10.4 -- -- 10.4

1995 9.0 -- -- 9.01996 6.0 -- -- 6.01997 5.5 -- -- 5.51998 5.5 -- -- 5.51999 5.0 -- -- 5.0 a. Beginning in 1972, data are withheld to avoid disclosing figures for individual companies.

b. Category includes primarily anhydrous chromic oxide although the data also include a smallamount of hydrated chromium oxide green. Beginning in 1985, data are withheld by the sourcein order to avoid disclosing figures for individual companies.

c. Totals may not equal the sums of the categories because of rounding. Total does not includechrome green after 1971 or chromium oxide green after 1984. Data includes hydrated oxide.

SOURCES: (A) Current Industrial Reports, Series M28A, U.S. Department of Commerce,Bureau of the Census (data for CHROME YELLOW and ORANGE for 1960-1990, MOLYBDATE ORANGE for 1960-1987, CHROME GREEN for 1960-1971, CHROMIUM OXIDE GREEN for 1960-1984 and TOTAL for 1960-1987).

(B) Lead Chromate Pigments Market Position and Possible Substitutes, DavidWaldron, Cookson Pigments Inc., 1992 (all other data 1972-1992).

(C) CEH estimates (data for 1993-1999).



Zinc chromate (or zinc yellow) production in 1999 is estimated to have been less than 2 thousand metrictons. Production of this pigment is expected to decline over the next five years as less toxic alternativessuch as zinc phosphate gain in popularity.

Consumption

Estimated U.S. consumption of lead chromate pigments in 1999 was 12 thousand metric tons, less than30% of the average annual consumption level during the 1970s.

The estimated 1996 U.S. consumption of chromium oxide, including the hydrated form, was less than 5thousand metric tons. This is down from the estimated 9.8 thousand metric tons consumed in 1988.

Data for chrome green or the specialty chrome green are unavailable. Consumption is estimated to be lessthan one thousand metric tons per year.

Zinc chromate consumption totaled less than 2 thousand metric tons in 1999. Like other chromates, healthand environmental concerns have led to a decline in zinc chromate consumption as consumers seekalternatives.

The following table shows the estimated consumption per market segment for lead chromate andchromium oxide pigments in 1988 and 1999:

U.S. Consumption of Chrome Pigments by Market Segment(percent)

1988 1999

LeadChromates

ChromiumOxide

LeadChromates

ChromiumOxide

Paints and Coatings 60 27 65 18Plastics 28 10 35 7Metalsa -- 29 -- 43Ceramic Materials -- 12 -- 12Roofing -- 9 -- 11Printing Inks 12 -- neg --Other neg 13 neg 9

Total 100% 100% 100% 100% a. Chromium oxide is available in three grades, two of which are nonpigmentary

(metallurgical and refractory). These two grades are included in the consumptionbreakdown, as the chemical composition is identical, with differences in particle size,surface area, particle size distribution and shape of the particle.


Essentially all normal lead silicochromate is used in traffic paints or heavy-duty coatings for bridges.

Paints and coatings. The largest single application for chrome pigments in the United States is in thesurface coatings industry. Historical estimated consumption of chrome pigments in surface coatings isshown in the following table:



U.S. Consumption of Chrome Pigments for Paints and Coatings(thousands of metric tons)

Lead Chromates

Chrome Yellow and Orange

MolybdateOrange

ChromiumOxidesa

ZincChromate Otherb Totalc

1980 18.1 4.5 3.2 4.5 2.3 32.71981 17.2 4.5 3.2 4.5 2.3 31.81982 16.8 3.6 3.2 4.5 2.3 30.41983 18.1 4.1 3.6 3.6 2.3 31.81984 18.6 4.2 3.2 4.1 2.3 32.3

1985 15.9 3.1 3.1 4.1 2.3 28.41986 13.6 3.1 3.0 4.1 2.3 26.01987 14.5 3.2 2.9 4.1 2.3 26.91988 12.7 2.7 2.6 4.1 2.3 24.41989 12.0 3.2 na 3.9 na 19.1

1990 9.8 2.8 na 3.8 na 16.41991 9.1 2.2 na 1.8 na 13.11992 8.5 2.0 na 2.0 na 12.51993 8.7 1.8 na 2.0 na 12.51994 8.0 1.7 na 1.9 na 11.5

1995 7.5 1.5 na 1.8 na 10.81996 5.5 1.5 na 1.8 na 8.81997 5.3 1.5 na 1.8 na 8.61998 5.0 1.5 na 1.8 na 8.31999 5.3 1.6 na 1.8 na 8.7 a. Data for 1984-1988 include about 0.5 thousand short tons annually of specialty-grade chromium oxide

green used in camouflage coatings.

b. Includes chrome green (a lead chromate) and normal lead silicochromate as well as corrosion-inhibitingpigments strontium chromate, magnesium chromate, barium chromate and calcium chromate.

c. Totals may not equal the sums of the categories because of rounding.


Lead chromate–based pigments are prohibited from use in architectural consumer paints because ofregulation by the Consumer Product Safety Act (see ENVIRONMENTAL ISSUES). Other chromepigments, chromium oxides for example, are less restricted. The majority of chrome pigments are used inspecial-purpose coatings and OEM product finishes. The major markets consuming chrome yellows—traffic paints, machinery and equipment finishes and OEM transportation vehicle finishes—areincreasingly switching to non–lead chromate alternatives. The current market for chrome orange, in rust-inhibiting paints, is negligible. Although more resistant to alkali attack than chrome yellow, the need forlarger particles of chrome and molybdate orange pigments makes over-grinding a problem; over-grindingcreates a yellower hue and results in poor hiding power.

Because of its brilliance, lightfastness and low cost, molybdate orange has been used in machinery andequipment finishes. In the past it was often blended with organic reds and violets to produce low-cost,durable automotive finishes.

Since it weathers well, chromium oxide green has some application in outdoor industrial coatings. Aunique feature of chromium oxide green is that it reflects infrared radiation in a manner similar to



chlorophyll, making it appropriate for use in the formulation of camouflage coatings resembling greenfoliage. Hydrated chromium oxide green has some limited use in mixtures with other chrome pigments toproduce the brilliant lightfast greens of exterior architectural paints.

Zinc chromate is used solely as an anticorrosive pigment. Although there are health concerns about zincchromate, it is less toxic and less expensive than the corrosion-inhibiting strontium and calcium chromatepigments. Nonetheless, consumption of zinc chromate is expected to decline as other less toxicsubstitutes, such as zinc phosphate, are used.

Future consumption of chrome pigments in surface coatings is primarily determined by the regulatoryenvironment, with the use of hexavalent chromium and lead highly restricted. Safety requirements arebeing addressed with the use of low-dust lead chromates and low-dust, low-solubility Krolor® (aregistered trademark owned by Dominion Colour) silica-encapsulated lead chromates. They remain inapplications where some organic replacements have lacked the performance of lead chromates,particularly in outdoor and harsh environments.

Historically, lead chromate’s largest market segment, traffic paint, has had the greatest impact on leadchromate consumption. Over half of the states of the United States have banned its use on highways,accounting for over 70% of the paved roads of the U.S. (See the ENVIRONMENTAL ISSUES sectionfor more information on lead chromate environmental regulations.) Organic pigment alternatives are moreexpensive on a per-pound basis and they may not provide equal durability. The consumption of chromepigments in paints is expected to continue to decrease.

Plastics. The second-largest market segment for lead chromate pigments is plastics. In 1999, roughly 3.7thousand metric tons were consumed in plastics. Estimated consumption of lead chromates by the plasticsindustry in recent years is reported in the following table:

U.S. Consumption of Lead Chromate Pigments in Plastics(thousands of metric tons)

1980 3.61981 4.11982 3.41983 3.91984 4.0

1985 4.11986 4.51987 6.41988 7.31989 7.0

1990 6.81991 6.71992 6.61993 6.31994 5.8

1995 5.61996 5.41997 4.01998 3.71999 3.7 SOURCE: CEH estimates.



Chromium oxide and chrome greens also find use in this market. Less than one thousand metric tons ofchromium oxides were consumed in plastics in 1999. Almost all of this was used in PVC (polyvinylchloride resin) siding.

In plastics the chrome yellows and molybdate oranges, as well as chemically stabilized forms of thesepigments, provide high opacity, low cost and bright colors. Furthermore, the excellent blendingcharacteristics of these pigments with colors of adjoining hues considerably extend their utility. Themajor performance limitation of the chrome yellows and oranges in plastics is in the area of heat stability,since they can be used only up to 180°C, although their reactivity with acids, alkalis and sulfides imposessome additional limitations. However, these limitations are alleviated by the protection most resinsprovide at normal pigment-loading levels and/or by the use of silica-encapsulated forms of thesepigments. A 15-20%-by-weight coating of silica vastly improves both chemical and heat resistance (up to320°C) as well as the lightfastness of chromate pigments.

Consequently, silica-encapsulated lead chromates compete for a portion of the cadmium pigments marketin engineering plastics, although organic pigments may be substituted for a greater share of the market.The color shading of chromates is equivalent to that of cadmium pigments and they have a lower price.Generally, conventional chromates are used to color vinyls and low-temperature polyolefin andpolystyrene resins. Lead chromates also are recommended for use in various thermosets, including epoxy,phenolics and polyurethane.

Chrome greens find some application in the plastics industry, although their sensitivity to alkalineconditions somewhat restricts their performance. They are used in polyesters and low-densitypolyethylene.

Chromium oxide greens, because of their outstanding chemical inertness and heat stability up to 1,000°C,are appropriate for plastics use. However, the nonhydrated form is drab in color and low in brightness,which limits its use in applications where a bright green color is preferable. Chromium oxide greens areused in thermoplastics, including ABS resins, cellulosics, polyethylenes and vinyls. Thermoset usesinclude epoxies, polyesters and urethanes. The hydrated form, a brilliant green hue that dehydrates at200°C, is used only in cellulosics. When a bright green color is desired in other resins, phthalocyaninegreen, rather than hydrated chromium oxide, is the pigment of choice.

As discussed in the Iron Oxide Pigments Consumption section of this report, pigments for plastics useare not usually sold directly to resin manufacturers or to plastic fabricators but are sold to independentformulators who manufacture color systems.

U.S. consumption of all chrome pigments in plastics for 1999-2004 is likely to continue to decline. It isexpected that consumers will continue to substitute organic pigments where possible, particularly as stategovernments increasingly restrict the use of lead in packaging and packaging components under theCoalition of Northeast Governors (CONEG) regulations (see ENVIRONMENTAL ISSUES).

Ceramic, glass and construction materials. An estimated 12% of chromium oxide green consumption isin ceramic, glass and construction materials. In 1996, this market represented less than one thousand met-ric tons. This category includes a number of products ranging from industrial refractories to glass, mortar,whiteware, porcelain enamels, china and tile.

Because of its chemical and heat resistance, chromic oxide green is the main ingredient in most greenceramic colorant compositions and is also used to prepare many green-colored glasses. In ceramic appli-



cations, chromium oxide can be used alone. However, it is frequently combined with other ingredients(e.g., cobalt oxide and aluminum oxide) both to modify its color and to improve its stability.

Green glasses can be produced using chromium oxide in solution in a siliceous matrix. This systemperforms best when antimony trioxide is present in the glass; without it the chromium oxide tends todevelop a yellow-orange color.

Chromium oxides can also be used in the manufacture of ceramic materials requiring pink coloration. Inthis case, they are commonly mixed with tin oxide and calcium to form the so-called chrome-tin pinks,which range in hue from pink through crimson to lilac. The majority of these chrome-pink pigments arestable up to 1,350°C. Combinations of chromium and aluminum oxides also produce pink to rubycolorants suitable for application in ceramic bodies or in underglaze decorations.

Chromium oxide can also be used as a source of green coloration in porcelain enamels. In this case, it is acomponent of the vitreous coating applied to the metal surfaces of bathtubs and appliances, such as rangetops, washers and dryers.

Chromium oxides also find application in industrial refractories. The most common industrial refractoriesare those composed of single or mixed oxides of chromium, aluminum, calcium, magnesium, silicon andzirconium.

Chromium oxide greens are also used to color ceramic glazes, mortar and concrete.

Hydrated chromium oxide green is less heat-resistant than chromium oxide and is therefore unsuited forhigh-temperature ceramic applications, although it can be used for coloring high-baking enamels.

The ceramics market for chrome pigments is believed to be relatively stable. No growth is expectedduring 1999-2004.

Roofing granules. Less than one thousand metric tons of chromium oxide green were consumed as apigment in roofing granules in 1999. Roofing granules are mineral granules, coated with silicates mixedwith various pigments. Green chromium oxide is the most commonly used chromium pigment. Becausethis pigment exhibits outstanding resistance to sunlight and the other severe conditions of exteriorexposure, it provides excellent durability in this application.

It is expected that substitutions for chromium oxide will increasingly be sought in roofing granules. Nogrowth is anticipated in this market.

Printing inks. Historically lead chromates have been used in printing inks as they have good hidingpower, ink flow, nonbleeding characteristics and stability. However by the mid-1990s, concerns abouthealth and environmental issues had eliminated lead chromate from inks in nearly all applications in theUnited States.

Because of the deleterious health effects of lead chromate pigments, their use in inks is restricted,especially in inks that could contact food or on articles intended for use by children. CONEG legislationand rulings by the Food and Drug Administration regarding lead chromate use in inks in food packaginghave led to a rapid decline in the total consumption of lead chromates in inks since 1988.

Other. Among the various applications that provide small markets for lead chromate pigments are paper,elastomers, pigmented leather finishes and floor coverings.



Chromium oxides are among the most important inorganics used in cosmetics (particularly in eye makeupand soaps) and also have FDA approval for use as colorants in externally applied drugs (e.g., ointments).They have some application in rubber compositions because of their tolerance for any type of cure andalso have limited application in textiles and artist’s colors.

No quantitative data on these other markets are available.

Price

See the trade section for U.S. average unit import values for chrome pigments.

Trade

Imports. U.S. imports and import values since 1964 are shown in the following tables:

U.S. Imports of Chrome Pigments(thousands of metric tons)

Lead Chromates

ChromeGreen

ChromeYellow

MolybdateOrange

ChromiumOxide Green Totala

1964 0.1 0.7 neg 0.2 1.01965 neg 0.8 neg 0.1 1.0

1970 0.1 4.8 0.1 0.9 6.0

1975 0.1 2.2 0.2 0.3 2.9

1980 neg 1.2 0.5 3.5 5.21981 neg 1.2 0.5 2.2 4.01982 0.1 1.3 0.4 1.5 3.21983 neg 1.8 0.7 1.8 4.31984 neg 2.3 0.9 1.8 5.1

1985 0.2 2.9 1.0 1.4 5.41986 0.1 1.9 0.8 2.6 5.41987 0.1 3.4 1.1 2.4 6.91988 0.2 4.0 1.1 4.0 9.31989 -- 3.7 1.0 -- 6.0

1990 -- 3.6 0.9 -- 5.71991 -- 3.5 0.8 -- 4.91992 -- 3.5 0.9 -- 6.91993 -- 3.6 0.7 -- 5.01994 -- 5.1 0.6 -- 6.4

1995 -- 4.7 0.7 -- 6.31996 -- 7.0 1.8 -- 9.81997 -- 6.8 1.8 -- 8.61998 -- 6.4 2.0 -- 8.41999 -- 6.8 1.6 -- 8.4



a. Totals may not equal the sums of the categories because of rounding. After 1988, total

includes zinc yellow and all other pigments and preparations based on chromiumcompounds.

SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the Census.

U.S. Average Import Values for Lead Chromate Pigments(dollars per pound)

ChromeYellow

MolybdateOrange

Zinc ChromeYellow

1997 1.30 1.65 na1998 1.30 1.75 0.751999 1.28 1.93 0.43 SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of

the Census.

In 1999, 8.4 thousand metric tons of chromium-based pigments were imported to the United States, adecrease from the 9.8 thousand metric tons imported in 1996. Chrome yellow was the major import,accounting for 6.8 thousand metric tons of the total. Canada was the origin for 55% of the chrome yellowimported.

Chrome pigment imports from Canada increased beginning in 1996, following the closure of CooksonPigment, the largest U.S. chromium pigments plant.

Exports. U.S. export quantities and values of chrome pigments since 1980 are shown in the followingtable:



U.S. Exports of Chrome Pigments

Quantity(thousands ofmetric tons)

Value(millions of

dollars)

1980 2.7 9.501981 2.4 8.621982 2.0 7.441983 2.3 8.831984 1.9 7.21

1985 1.8 6.441986 2.3 7.621987 3.2 9.531988 3.2 11.071989 2.3 7.65

1990 2.6 9.251991 2.0 7.421992 2.7 11.341993 2.3 9.401994 1.3 6.01

1995 na na1996 na na1997 3.8 13.11998 2.3 8.21999 1.5 6.2 SOURCES: (A) U.S. Exports, U.S. Department of Commerce,

Bureau of the Census (data for 1980-1992).



(D) U.S. trade (data for 1997-2000).

U.S. lead chromate pigment exports declined after 1996 when over 50% of U.S. production capacity wasclosed. Canada and Mexico supply most of the export markets formerly served by the United States.

Complex Inorganic Pigments

Producing companies

U.S. producers of complex inorganic pigments (formerly known as mixed-metal oxides) are listed in thefollowing table. Each producer manufactures other products in addition to those specified in the table.



U.S. Producers of Major Complex Inorganic Pigments—March 1997a


PBk-27

PBk-28

PBR-30

PB-28

PB-36

PBn-24

PBn-33

PG-26

PG-50

PBr-35

PY-53

PY-164

Cerdec CorporationDrakenfeld Products

Washington, PA X X X X X X X X X X

Engelhard CorporationSpecialty Pigmentsand Additivesb

Elyria, OH X X X X X X X X X X

Ferro CorporationCoatings, Colors,& Ceramics Group

Pigments DivisionCleveland, OH X X X X X X X X X X XToccoa, GA X X X X X X X X X X X X

The Shepherd ColorCompanyb

Cincinnati, OH X X X X X X X X X X a. Only selected complex inorganic products are shown. All producers listed in the table manufacture both ceramic- and

pigment-grade complex inorganic pigments. Color key:

PBk-27 = Black 27 (iron cobalt chromite black)PBk-28 = Black 28 (copper chromite black)PBk-30 = Black 30 (chrome iron nickel spinel)PB-28 = Blue 28 (cobalt blue or cobalt aluminate blue spinel)PB-36 = Blue 36 (cobalt chromite blue-green spinel)PBn-24 = Brown 24 (chrome antimony titanium buff rutile)PBn-33 = Brown 33 (nickel ferrite brown spinel)PG-26 = Green 26 (cobalt chromite green spinel)PG-50 = Green 50 (cobalt titanate green spinel)PV-14 = Violet 14 (cobalt violet phosphate)PY-53 = Yellow 53 (nickel antimony titanium yellow rutile)PY-164 = Yellow 164 (manganese antimony titanium buff rutile)

b. Company also produces PG-17.


In December 2000, BASF closed its Rensselaer, New York complex inorganic pigments plant.

Production

U.S. production data for complex inorganic pigments are not published. For 1999, U.S. production was anestimated 7.9 thousand metric tons.



Consumption

Estimated U.S. consumption of complex inorganic pigments in 1999 was 7.6 thousand metric tons. U.S.consumption for 1996 and 1999 is segmented as follows:

U.S. Consumption of Complex Inorganic Pigments

1996 1999


Market Share(percent)

Quantity(thousands of metric tons)


Plastics and Rubber 4.6 60 4.6 60Ceramic and Glass Materials 1.8 24 1.8 24Paints and Coatings 1.1 15 1.0 13Other 0.1 1 0.2 3

Total 7.6 100% 7.6 100% SOURCE: CEH estimates.

Plastics and rubber. An estimated 4.6 thousand metric tons of complex inorganic pigments wereconsumed in the plastics and rubber industries in 1999. Although these pigments were used for coloring avariety of thermoplastics, thermosets and high-temperature engineering resins, the leading plasticsapplication was in polyvinyl chloride (PVC) for exterior siding. The leading rubber applications includethe coloration of silicon rubber used in high-temperature hoses, spark plug cables and computer cableswhere color coding is important.

The PVC siding market accounts for approximately 75% of total complex inorganics used in the plasticsand rubber market segment.

The major PVC siding application for complex inorganic pigments, cap stock, uses only an outer layer ofpigmentation. Instead of pigmenting the entire piece of siding, a laminate surface of color containingcomplex inorganics and titanium dioxide is coextruded over a nonpigmented PVC base profile.Coextruded siding not only requires less pigment than traditional PVC siding but also results in a moredurable product.

PVC siding has traditionally been used for remodeling and for mobile homes, but it has recently gainedacceptability in new residential construction. Nickel and chrome titanates are the most frequently usedcomplex inorganics in PVC. Chrome antimony titanium buff rutile (PBn-24) is often the colorant ofchoice. PG-17, appearing black in higher concentrations is typically used as a substitute for carbon blackfor siding since it absorbs less energy and, therefore, lowers air-conditioning costs.

For overall plastics use, both chrome and nickel titanates have attained prominence as colorants. Nickeltitanates in combination with high-performance organic pigments have replaced some lead chromates andcadmium yellows. Their excellent stability at high temperatures can make them a good choice in certainplastics applications. However, their poor tinctorial strength can require a heavy loading, weakening someplastics. Manganese titanates may be used in place of iron-containing pigments, which sometimescompromise the stability of some resins.

Imported, rare earth–based pigments from Rhône-Poulenc in France show significant promise in thethermoset plastics market segment. This cerium containing pigment line, known as Neolor™, is available



in orange (PO-75) and red (PR-265). This product is a suitable, albeit expensive alternative to cadmiumpigments with a price of $17-18 per pound.

Ceramic and glass materials. Complex inorganics were first used in ceramics and glass applicationsbecause of their high heat stability. Consumption in 1999 was an estimated 1.8 thousand metric tons.

The ceramic and glass materials colorants category includes both colorants used in clay-based productsand colorants used in glass manufacture. Since clay-based products are often coated with glazes, the twoapplications can overlap. Applications for complex inorganics include ceramic bodies, underglazedecoration, colored glazes, overglaze decoration, porcelain enamels, colored glasses, forehearth colors(strongly colored glass added to molten uncolored glass) and on-glass decorations. The processingtemperatures required in these applications may be as high as or higher than 1,300°C. To withstand theseextremely high temperatures, complex inorganics are often the pigments of choice. In particular, complexinorganics of the spinel and zircon families are commonly used. Although these types of pigmentspossess a wider range of temperature stability than the cadmiums (which are also used to color ceramics),they lack the brilliance and intensity of cadmium colorants. (See the following section on CadmiumPigments.)

The spinel complex inorganics have a cubic structure and vary in color from blues to greens to brownsand blacks depending upon the metal ions introduced into the crystal structure. Spinels are usedextensively in wall tile and in some sanitaryware. Tile and sanitaryware applications differ from oneanother in the heat required to fuse the glaze to the ware. Tiles are normally heated to about 1,140°Cwhile sanitaryware is fired to about 1,300°C. Some spinels fail to withstand the 1,300°C temperature.They actually dissolve, destroying the crystal lattice, resulting in disappearance of the color.

Thus, for higher-temperature firings, the zircons are employed. Zirconium silicate is an extremely stableoxidic compound with a cubic lattice into which metallic ions may be introduced to generate color. Forexample, if vanadium is substituted for silicon in the crystal structure, a blue color results. A coral orpeach color is generated when iron oxide is encapsulated by zircon and a yellow results whenpraseodymium is substituted for some of the zirconium ions in the lattice.

Reductions in the use of cadmium because of environmental regulations continue to create increaseddemand for complex inorganics over cadmium; however, the increased imports of ceramics, particularlyfrom Italy, has decreased U.S. ceramic production and the overall demand for pigments in ceramics.

Overall, ceramics production has been declining in the U.S. because of manufacturing relocations andrising imports. Porcelain enamel has also been declining as white goods are increasingly manufacturedwith painted metal.

Paints and coatings. Consumption of complex inorganics in paints and coatings in 1999 was estimated at1.0 thousand metric tons, accounting for about 15% of total consumption. Nickel titanates are probablythe most important single group of complex inorganics used in paints. They are consumed in exteriorhouse paints, auto enamels and coil coatings for outdoor applications. To some extent, nickel titanates areused as substitutes for chrome yellows.

Cobalt chromite green is the second complex inorganic pigment of significance in the coatings industry.Since this pigment simulates the reflectance properties of chlorophyll, it is valuable as a camouflagecoating and has been approved for use in U.S. military applications.



In practice, camouflage coatings are generally blends of green, brown and black pigments, includingcobalt-based complex inorganics. Often the blends include black iron oxide, chromium oxides, zincferrites and cobalt chromite green, plus small quantities of organic pigments.

Camouflage pigments are used in fabrics for netting, tent materials and truck tarps. However, in coatingmachinery, camouflage coatings have evolved from alkyds to two-component urethane systems. Theurethane finish lasts much longer than the alkyd, reducing the need to refinish as frequently.

Coil coatings are believed to consume the largest percentage of the complex inorganics used by thesurface coatings industry. These coatings are used primarily on aluminum and steel sidings for residentialhomes, mobile homes and commercial buildings. The coatings, containing complex inorganic colorants,are liquid resin systems applied at high speeds to continuous sheets, strips and coils of aluminum or steeland baked at high temperatures. The primary complex inorganics used in coil coatings are nickel andchrome titanates, which possess color stability at high temperatures.

In the United States, complex inorganic pigments in paints and coatings have nearly completed theirgrowth because of replacement of chrome yellows and cadmium pigments.

Other. Limited quantities of complex inorganics are used in adhesives, ceramics, inks (including foodcontact inks for plastics), roofing granules, concrete swimming pools, cement grouts, artist’s colors andcosmetics (particularly violet). The size of this market segment was about 200 metric tons in 1999.

Price

The following table presents representative list prices for selected complex inorganic pigments:

U.S. List Prices for Complex Inorganic Pigmentsa

(dollars per pound)

March 1994 March 1997 March 2001

PricesCobalt

Surcharge PricesCobalt

Surcharge PricesCobalt

Surcharge

DryBlack (PBk-27)

Paint Grade 19.86 2.06 na na -- --Ceramics Grade na na 18.00 4.00 -- --

Black (PBk-28)Paint Grade 5.95 none 5.00 none 5.00 none

Blue (PB-36)Paint Grade 16.02 2.07 13.60 1.60 13.60 0.40

Brown (PBn-33)Paint Grade 6.68 none 6.25 none -- --

Green (PG-50) 12.65 1.00 11.60 1.20 -- --Violet (PV-14) 36.57 1.29 24.00 5.50 -- --Brown (PBn-24) -- -- -- -- 3.25 none

Paint Grade -- -- -- -- 11.60 0.25Yellow (PY-53) -- -- -- -- 3.50 none

a. Prices based on one thousand pound quantities. Cobalt surcharge is included in price and is subject to change

without notice, depending on cobalt market conditions.




Trade

Trade data for complex inorganic pigments are not reported. It is estimated that just over 450 metric tonswere imported by the United States in 1999, primarily from Japan and Germany. Exports are estimated at675 metric tons in 1999, with destinations primarily in Western Europe, followed by Canada, Asia(China, the Republic of Korea, Taiwan, Malaysia and Singapore) and South America.

Cadmium Pigments

Producing companies

The following table lists U.S. producers of cadmium pigments, plant locations and specific productsmanufactured:

U.S. Producers of Cadmium Pigments—March 2001a


Orange(PO-20)

Orange(PO-20:1)

Red(PR-108)

Red(PR-108:1)

Yellow(PY-35)

Yellow(PY-35:1)

Yellow(PY-37)

Yellow(PY-37:1)

Engelhard CorporationSpecialty Pigmentsand Additives

Louisville, KY X X X X X X X X

Millennium InorganicChemicals, Inc.

Baltimore, MD X X X X X X X X a. Color key:

PO-20 = Cadmium sulfoselenide orange (Cd[S/Se])

PR-108 = Cadmium sulfoselenide red (Cd[Se/S])

PY-35 = Cadmium/zinc sulfide yellow ([Cd/Zn]S)

PY-37 = Cadmium sulfide yellow (CdS)

A colon followed by “1” denotes the lithopone form of the pigment. Englehard Corporation is the largest-volume producer.Ferro blends pigments at the Cleveland, Ohio plant that are produced in Celaya, Mexico.


Salient statistics

U.S. salient statistics for cadmium-based pigments are shown in the following table:



U.S. Supply/Demand for Cadmium Pigments(thousands of metric tons, gross weight basis)

Production Imports ExportsApparent

Consumption

1986 0.9 na na na1987 0.8 na na na1988 0.6 na na 2.31989 0.8 0.9 neg 1.71990 0.5 0.8 neg 1.3

1991 0.6 0.4 0.1 0.91992 0.6 0.5 0.2 0.91993 0.7 0.3 0.2 0.81994 0.7 0.3 0.4 0.61995 0.4 0.2 0.1 0.5

1996 0.4 0.2 0.1 0.51997 0.4 0.2 0.2 0.41998 0.4 0.2 0.2 0.41999 0.4 0.2 0.3 0.3 SOURCES: (A) U.S. Imports, U.S. Department of Commerce, Bureau of the

Census (data for IMPORTS).

(B) U.S. Exports, U.S. Department of Commerce, Bureau of theCensus (data for EXPORTS).

(C) CEH estimates (all other data).

Cadmium pigment consumption and production is expected to fall further as OSHA limits on cadmiumexposure in the workplace, CONEG requirements and EPA regulations increasingly restrict the use ofcadmium.

U.S. consumption of cadmium pigments in 1999 was about 0.3 thousand metric tons, 13% of the amountconsumed in 1988.

Estimated market shares of cadmium pigments by end use in 1996 and 1999 are presented in thefollowing table:

U.S. Consumption of Cadmium Pigments by End Use

1996 1999

Quantity(metric tons)




Plastics 325-350 65-70 180 60Ceramic Materials 100-125 20-25 30-40 10-15Paints and Coatings neg neg 30-40 10-15Other 25-40 5-8 30-40 10-15

Total 450-515 100% 270-300 100% SOURCE: CEH estimates.



Plastics. The plastics industry is the largest U.S. market for cadmium pigments. Estimated consumptionof cadmium pigments in plastics in recent years is reported in the following table. Much of thisconsumption is of the lithopone form of cadmium pigments.

U.S. Consumption of Cadmium Pigmentsby the Plastics Industry


1980 2.11981 2.51982 2.01983 2.21984 2.2

1985 2.21986 2.21987 2.21988 2.11989 1.5

1990 1.11991 0.81992 0.71993 0.51994 0.4

1995 0.41996 0.31997 0.21998 0.21999 0.2 SOURCE: CEH estimates.

Historically, cadmium pigments have been consumed mainly in the following plastic resins: acrylonitrile-butadiene-styrene terpolymer (ABS), high-density polyethylene (HDPE), low-density polyethylene(LDPE), polypropylene (PP) and polystyrene (PS). Polyvinyl chloride (PVC) and engineering resins suchas polycarbonates, polyacetals, nylons, thermoplastic polyesters and polyphenylene oxides have historic-ally accounted for less than 5% of the plastic market for cadmium pigments.

In the higher-processing-temperature plastics such as HDPE and the engineering resins, cadmium hasbeen the pigment of choice, although mixtures of complex inorganics and organic pigments may also beused. Bayer Corporation ceased cadmium pigment use in its thermoplastics in 1990. Bayer reformulatedits cadmium-containing pigments and substituted organic dyes in its inorganic and organic pigments.Other plastics producers such as General Electric have also replaced cadmium pigments in their products.

On a functional basis, cadmium pigments work well in practically all plastics, because of their opacity,resistance to migration, excellent lightfastness, ability to tolerate high temperatures (800-900°C), brilliantclear colors and easy dispersibility. They are weak only in their resistance to acidic conditions ormoisture.

As is true for other pigments, cadmiums are not generally introduced into plastics through directdispersion of dry pigment into the host resin material. More often, plastics compounders introduce



pigments in a predispersed form, known as masterbatch pellets, which hold cadmium colorant in acompounded resin, permitting plastics fabricators to add color at the optimum stage of the manufacturingprocess. Paste dispersions, liquid color and encapsulated pigments have also found wide acceptanceamong plastics formulators as a means of introducing color to resins. All these pigment vehicles reducethe problem of dusting and provide higher color consistency.

Over the next five years, cadmium pigment consumption per volume of plastic produced is expected todecline despite growth in plastics output.

Ceramic materials. An estimated 30-40% of the total market for cadmium pigments is in the ceramicmaterials area. In 1999, this is estimated to have been less than 40 metric tons.

Cadmium reds, oranges and yellows have been used extensively (usually in the form of colored frits) inthe mass coloration and external decoration of glass, in porcelain enamel coatings for metal and inunderglaze and overglaze decorations and glaze stains for ceramic clay objects. Cadmium colorants workwell because they are capable of withstanding extremely high ceramic processing temperatures (up to900°C) and because of the bright, varied colors they offer.

Currently, the largest portion of cadmium pigments consumed in ceramics is in ceramic tiles and artware,as components of glaze stains and in overglaze and underglaze decorations. Glazes formulated to becompatible with the pigments and to promote color development, pigment stability and chemicaldurability are used in conjunction with the cadmium colorants. Such glazes are low in alkali content andusually contain cadmium oxide. The presence of the oxide reduces the chemical potential of the cadmiumin the molten glaze during firing, thereby enhancing the stability of the pigment in the final glazedproduct.

The largest portion of cadmium pigment consumption for ceramics applications has traditionally been inporcelain enamels for aluminum, sheet steel and cast iron. Such aluminum products as gas barbecue grillsmay be coated with enamels containing cadmium sulfide or sulfoselenide pigments. There was a marketfor cadmium pigments in aluminum cookware, but this has declined significantly as imports havereplaced domestic products and consumer preference has changed from bright colors to browns. This mayalso occur with cast iron stove parts, exhaust systems and heater parts.

Cadmium yellows and reds are used both in mass coloration of glass (e.g., reds for traffic signals, railwaysignal glasses and marine navigational lights) and in on-glass decorations (e.g., labels on soda bottles).

In these transparent glass applications, the cadmium pigment particles are colloidally dispersed andproduce colors by selective absorption and scattering of light.

The overall decline in this market is expected to continue.

Paints and coatings. In 1999, the consumption of cadmiums in paints and coatings was dominated byprimers.

Historically, cadmium pigments were used in the manufacture of industrial coatings (particularly coatingsused for anticorrosion maintenance) for steam and process chemical pipes, process equipment and generalinterior plant use, because of their good resistance to chemical attack, particularly from alkalis, as well asresistance to heat. Smaller applications included use in metal coil coatings, some machinery andequipment coatings, auto refinishing and various specialty coatings.



Other. Altogether, other uses accounted for less than 40 metric tons of cadmium pigments in 1999.

Most of the other uses are believed to be in artist’s paints where cadmium yellows, oranges and reds offerpleasing hue, lightfastness and sulfide stain resistance.

Cadmium pigments also have some limited use in rubber products, such as rubber flooring and siliconerubber cable. Cadmiums are stable to the curing conditions of rubber and do not stain or bleed. However,because other less expensive pigments also satisfy rubber requirements, cadmiums are rarely the pigmentof choice.

Cadmiums were also used to color some printing inks, synthetic fibers, paper laminates and leatherfinishes. However, use in these applications is believed to be extremely limited and likely to decrease.

Price

U.S. year-end prices for cadmium pigments in selected years were as follows:

U.S. Prices for Finished Cadmium Pigments(dollars per pound)

1989 1995 2000

LithoponeOrange, Cadmium-Selenidea

Deep 3.23-3.70 6.65-7.10 6.14b

Red, Cadmium-Selenideb

Light 4.15-4.18 4.15-4.18 naMedium Light 4.43-4.46 4.43-4.46 naMedium 4.35-4.88 4.35-4.88 naDeep 5.31 5.31 naMaroon 5.75-5.76 5.75-5.76 na

Yellow 2.34c 5.15c naPure

Red 8.63-9.64 8.63-9.64 naYellow 0.70-0.74 na na

a. 500-pound bags.

b. 400-pound barrels, FOB shipping point, freight allowed east of RockyMountains.

c. One-ton lots, FOB shipping point, freight allowed east of Rocky Mountains.

SOURCES: (A) American Paint & Coatings Journal (data for 1989 and 1995).

(B) Chemical Marketing Reporter (data for 2000).

On a price-per-pound basis, cadmium pigments are generally more expensive than other inorganicpigments (except complex inorganics).

Between 1995 and 1996, prices doubled for some lithopone cadmium-selenide reds, while prices for othercadmium pigments remained relatively unchanged, reflecting weak demand. Prices for cadmiumpigments are expected to soften as demand continues to decay.



Trade

Trade data for cadmium pigments are reported in the Salient statistics section.

Other Inorganic Pigments

See the “World Market Value of Color Pigments by Region—1999” and “World Consumption ofPigments by Region—1999” tables for U.S. consumption of minor pigments not produced in the UnitedStates, including ultramarines, iron blues, bismuth vanadate and rare earth sulfides. Further informationabout the manufacture of these pigments and trade can be found in the Western European section. Nodetailed information is available on the supply and demand for other inorganic pigments.

CANADA

Producing Companies

Dominion Colour Corporation’s plant in Ajax, Ontario is the world’s largest lead chromate plant and theonly site of lead chromate production in Canada. The company produces chrome yellow (PY-34) andmolybdate orange (PR-104). Lead chromates production capacity was expanded by 65% at this plant in1996. In 1997 the Ajax facility began production of silica-encapsulated lead chromate pigments, usingtechnology purchased from Cookson Pigments.

Consumption

Canadian consumption of inorganic color pigments is estimated in the table below.

Canadian Consumption of Inorganic Color Pigments(thousands of metric tons)

Iron Oxide Lead Chromate Cadmium

1996 17.9 1.6-1.8 neg

1999 21.3 1.6-1.8 neg SOURCE: CEH estimates.

Trade

Complete data are not available for Canadian trade in inorganic pigments.

The majority of Canada’s pigment exports are to the United States. According to U.S. trade statistics,Canadian exports of inorganic pigments to the United States are as follows:



Canadian Exports of Inorganic Pigments to the United States(metric tons)

SyntheticIron Oxide Chromium Cadmium

1993 394 18 301994 5,967 na 541995 6,380 321 341996 6,260 7,056 291997 6,030 7,001 771998 4,940 5,568 471999 4,064 5,209 62 SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the

Census.

Canada’s U.S. chromium exports grew significantly following the closure of half of the U.S. leadchromate production capacity in 1996.

MEXICO

Producing Companies

Iron oxide pigments

De Mateo y Compañía, S.A. de C.V. in Zumpango, México produces synthetic black (PBk-11) andSynthetic Brown (PBn-6).

Chrome pigments

The following table lists the chrome pigments producers of Mexico:

Mexican Producers of Chrome Pigments—April 2001

Lead Chromates


ChromeYellow(PY-34)

Molybdate Orange(PR-104)

Pyosa, S.A. de C.V.Monterrey, Nuevo León X X


BASF’s lead chromate pigment plant at Santa Clara closed in 1997, shifting lead chromate supply toimports from BASF’s plant in Germany.



Complex inorganic pigments

Only one company is known to produce complex inorganic pigments in Mexico: Ferro Méxicana, S.A. deC.V. in Mexico City. This plant produces black (PBk-28), blue (PB-28, PB-35, PB-71), red (PR-230, PR-231, PR-232, PR-233, PR-235, PR-236) and yellow (PY-158, PY-159, PY-160) pigments.

Production

Mexican inorganic color pigment production between 1994 and 1999 is as follows:

Mexican Inorganic Pigment Production(thousands of metric tons)

1994 15.61995 8.51996 12.51997 14.81998 16.71999 17.8 SOURCE: ANIQ.

Estimates for consumption of other inorganic pigments are not available.

Consumption

Mexican consumption of inorganic pigments is estimated in the table below.

Mexican Consumption of Inorganic Color Pigments(thousands of metric tons)

Iron Oxide Lead Chromate Cadmium

1996 16-17 2.5 neg

1999 19-20 2.5 neg SOURCE: CEH estimates.



Trade

Import data are available for Mexican inorganic color pigments in the following table:

Mexican Imports of Inorganic Color Pigments(thousands of metric tons)

ChromiumPigments

CadmiumPigments Other Total

1993 0.3 0.1 1.1 1.51994 0.3 0.1 2.9 3.31995 0.2 0.1 2.2 2.51996 0.2 0.1 2.4 2.71997 0.2 0.1 3.1 3.41998 0.3 neg 3.5 3.81999 0.3 neg 5.7 6.0 SOURCES: (A) Sistema de Información, Comercial de México, Banco

Nacional de Comercio (data for 1993-1995 and TOTAL allyears).

(B) CEH estimates (all other data).

Export data are available for Mexican inorganic color pigments in the following table:

Mexican Imports of Inorganic Color Pigments(thousands of metric tons)

ChromiumPigments

CadmiumPigments Other Total

1993 1.0 neg na na1994 1.3 neg 2.1 3.41995 2.2 neg 3.1 5.31996 2.2 neg 3.1 5.31997 2.2 neg 3.1 5.31998 2.2 neg 3.2 5.51999 2.3 neg 3.4 5.7 SOURCES: (A) Sistema de Información, Comercial de México, Banco

Nacional de Comercio (data for 1993-1995 and TOTALall years).


Chromium pigment exports rose rapidly following the peso’s devaluation in 1994, while weakening U.S.demand for cadmium pigments led to a decline in cadmium exports. In 1995, 44% of Mexico’s chromiumpigment exports went to the United States, followed by Canada at 17%. The United States was the soledestination for cadmium pigment exports in 1995. Total inorganic color pigment exports more thandoubled between 1996 and 1999 to 6 thousand metric tons.



SOUTH AMERICA

Iron Oxide Pigments

The following table lists synthetic iron oxide–producing companies, plant locations and specific pigmentsproduced:

South American Producers of Synthetic Iron Oxide Pigments—March 2001a


BlackPBK-11

RedPR-101

BrownPBn-6

YellowPY-42

Argentina

Química Sudamericana S.A.Berazategui, Buenos Aires X X X X

Brazil

Bayer S.A.Porto Feliz, São Paulo X X X X

Chile

Pigmentos Marathon S.A.Quinta Normal, RegiónMetropolitana de Santiago X

___________________a. C.A. Venezolana de Pigmentos in Valencia, Carabobo, Venezuela also produces a number

of iron oxide pigments.


Chrome Pigments

The following table lists the chrome pigment producers in South America:

South American Producers of Lead Chromate Pigments—March 2001


ChromeYellow(PY-34)

MolybdateOrange

(PR-104)

ChromiumOxide Green

(PG-17)

Argentina

ARCOLOR S.A. C.I.I.F.A.Pilar, Buenos Aires X

Brazil

BASF S.A.São Caentano do Sul, São Paulo X

Cleomar Química Indústria eComércio Ltda.

Indaiatuba, São Paulo X X

Química Brasil-Sumaré Ltda.Sumaré, São Paulo X



South American Producers of Lead Chromate Pigments—March 2001 (continued)


ChromeYellow(PY-34)

MolybdateOrange

(PR-104)

ChromiumOxide Green

(PG-17)

Colombia

Pigmentos y Productos QuímicosS.A.

Girardota, Antioquía X

Venezuela

C.A. Venezolana de PigmentosValencia, Carabobo X X



At least two companies produce complex inorganic pigments in South America:

South American Producers of Complex Inorganic Pigments—April 2001


Black(PBk-28)

Blue(PB-28)

Blue(PB-35)

Brown(PBn-24)

Brown(PBn-33)

Red(PR-231)

Yellow(PY-53)

Yellow(PY-160)

Argentina

ARCOLOR S.A.C.I.I.F.A.

Pilar, Buenos Aires a X X X X

Brazil

Ferro Enamel do BrazilIndustria e ComercioLtda.

Sao Bernardo do Campo Sao Paulob X X X X X

a. Arcolor also produces PB-36.

b. Ferro also produces PR-233, PR-235, PR-236 and PY-159.


Cadmium Pigments

Cadmium pigments PO-20, PR-108 and PY-37 are produced by ARCOLOR S.A. C.I.I.F.A. at Pilar,Buenos Aires, Argentina.



Consumption

See the “World Consumption of Pigments by Region” table for South American inorganic color pigmentconsumption.

WESTERN EUROPE

Iron Oxide Pigments

Producing companies

Western European producers of iron oxide pigments have been facing a number of challenges from thefollowing reasons:

● Relatively mature markets

● Large number of producers and traders

● Considerable oversupply and low overall capacity utilization

● Decreased profitability in most sectors

● Increased Asian competition (particularly China and India)

Iron oxide pigments are the single largest-volume group of color pigments produced in Western Europe.Production of these pigments, which includes natural iron oxide, is carried out by a vast number ofcompanies, yet only a few companies account for the major share of production and Bayer is by far theworld’s largest supplier.

Although there are only a few basic producers of synthetic iron oxide pigments in Western Europe, alarge number of companies produce different grades and shades of iron oxide pigments from eitherpurchased pure natural pigments or mixtures of natural and synthetic iron oxides.

Whereas companies manufactured only ground pigments in the past, an increasing number ofmanufacturers are now also offering higher value-added micronized granular grades. Micronized ironoxide pigments have a number of advantages over the standard grades:

● Higher tinting strength

● Lower oil absorption

● Easier dispersing

● Lower processing costs for end users because of the lower volumes required

In addition, iron oxide pigments are now being produced in a granular form. The advantage of usinggranular pigments is the low-dust emission and free flowability of the product.



Natural iron oxide pigments. In Western Europe, natural iron oxide pigments are produced in a number ofcountries, the most important of which are Spain and Italy for the color iron oxide pigments; Austria isthe leading producer of micaceous iron oxide pigments.

The following table lists the Western European producers of natural iron oxide pigments:

Western European Producers of Natural Iron Oxide Pigments


Black(PBk-11)

Brown(PBn-7)

Red(PR-102)

Yellow(PY-43) Remarks

France

Barytine de Chaillac SA(owned by Solvay S.A. [Belgium])

Chaillac X -- -- -- Barite by-product from feldsparproduction. Pigment used primarily inthe construction industry.

Marius Lamy & Companie SARLApt -- -- -- X

Oxymine S.A.(owned by Poortershaven[Netherlands])

Poissy X X X X

Germany

Bruchsaler Farbenfabrik GmbH &Co. KG

Bruchsal X -- -- --

Dr. Hans Heubach GmbH & Co.KG

Langelsheim, Niedersachen X -- -- --

Italy

Società Italiana Ossidi Ferro SpAPozzolo-Formigaro Piemonte X X -- X Small output only. Produces primarily

synthetic iron oxides.

Veneta Mineraria SpAAlagna Valsesia X -- -- -- By-product from feldspar production.

Norway

Rana Gruber ASMo i Rana X -- X -- Plant started in 1990. Product is by-

product from magnetite and haematiteores. A 4 thousand metric ton-per-yearred iron oxide pigment plant came onstream in mid-1994.

Spain

Agroquímica del Vallés, SALas Franquesas del Vallés X -- -- --



Western European Producers of Natural Iron Oxide Pigments (continued)


Black(PBk-11)

Brown(PBn-7)

Red(PR-102)

Yellow(PY-43) Remarks

Spain (continued)

Asensi, TermoplásticosVillafranqueza -- -- X --

Oxidos del Sur SAHuercal de Almeria -- X X X A smaller company producing a range

of iron oxide pigments.

Oxidos Rojos de AndalucíaRamon Alcade Zorrilla

Jaén -- -- X -- Mining and processing plant.

Oxidos Rojos de Málaga, S.L.(owned by Golden Valley ColoursLtd. [United Kingdom])

Málaga -- -- X -- Produces micronized and superfine redpigments.

Productos Minerales parala Industria, S.A.—PROMINDSA

Sopuerta X -- -- X Combined capacity for black magneticiron oxide and yellow pigments.

Tierga X -- X -- Produces superfine and micronizediron oxide pigments for primarily thepaint, glass, ceramic enamels and fritsindustries.

United Kingdom

Elementis UK Ltd.Elementis Pigments

Milton Keynes -- X -- --

Laminox Ltd.Peterlee -- X -- --

Winford Red Oxide Co., Ltd.(100% owned by W. Haley& Son Ltd.)

Duffield -- -- -- X Processing plant.Winford -- -- -- -- Ocher surface mine. Iron oxide content

is 40-50%. a. Micaceous iron oxide.

b. Company is associated with Oxhinsa, SA, Spain.


Synthetic iron oxide pigments. The most important producer of synthetic iron oxide pigments in WesternEurope and the world is Bayer AG. The company accounts for approximately 50% of total worldsynthetic iron oxide pigment output.



Bayer produces a range of more than sixty different varieties of iron oxide pigments, including twentystandard-grade reds, ten yellows, nine browns, five blacks and the micronized grades (Bayferrox™),which include ten reds, seven yellows and one black. Recently the company initiated a major upgrade andexpansion program for its iron oxide pigment operations at Uerdingen.

Through acquisitions and capital investments, K-L Holdings (the acquirer of Laporte) has advanced to thenumber two position worldwide. The company is manufacturing a wide range of different grades and huesof iron oxide pigments and recently started manufacturing granular pigments.

Heubach is a relatively new and aggressive iron oxide pigments producer. Since 1997, the company hasoperated a 20 thousand metric ton-per-year plant at Langelsheim, Germany. Heubach’s iron oxidepigment range includes one yellow, four reds and one black, as well as micronized and encapsulatedpigments.

BASF is producing a range of transparent iron oxide pigments that are used in higher-value-addedproducts. The range includes four reds, two yellows and one orange. Apart from color pigments, thecompany is also producing three grades of magnetic pigments.

Synthetic iron oxide pigment producers are listed in the following table:

May

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Western European Producers of Synthetic Iron Oxide Pigments

Company and Plant LocationBlack

(PBk-11)Brown

(PBn-6)Red

(PR-101)Yellow(PY-42) Remarks

Austria

Krems Chemie AktiengesellschaftKrems an der Donau X X By-product route.

France

Cappelle Frères SARLHalluin X X X Transparent pigments.

Germany

BASF AktiengesellschaftLudwigshafen X X Transparent pigments (Sicotrans™). Also orange and

magnetic pigments. Mainly for plastics and paintsystems.

Köln X X FDA grades (Sicomed® for cosmetics andSicopharm® for pharmaceutical applications).

Bayer AGKrefeld X X Aniline.

X X Penniman-Zoph process.X Primarily blending.

Dr. Hans Heubach GmbH & Co. KGLangelsheim X X X Heucorox®. Start-up in January 1997. Micronized

grades.

Rockwood PigmentsBreckhurs X X X X

Italy

Rockwood PigmentsRockwood Italia SpA

Silo DivisionTorino X X X X Trade names are Duploxide® (red, brown and black

iron oxide) and Ferroxide® (yellow iron oxide).

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Western European Producers of Synthetic Iron Oxide Pigments (continued)


(PBk-11)Brown

(PBn-6)Red

(PR-101)Yellow(PY-42) Remarks

Italy (continued)

Società Italiana Ossidi Ferro SpAPozzolo-Formigaro X X X X Used mainly in cements and mortars. Also supplies

natural iron oxide pigments.

Spain

Cremades y Compañía, S.A.Molina de Segura X X Purofer™.

Oxhinsa, SAAlicante X X X Scrap iron, precipitation; Spanfer™, a synthetic black

pigment.

United Kingdom

Cookson Matthey Ceramics & Materials Ltd.Materials Division

Pigments & DispersionsStoke on Trent X X Transparent pigments.


Milton Keynes X X X X Penniman-Zoph process (Deanox™). Black iron oxidepigments are resold from the United States.

Laminox Ltd.(ultimately owned by Plüss Stauffer AG)

Peterlee X Micaceous synthetic iron oxide. SOURCE: CEH estimates.



The following pie chart shows the estimated market share for synthetic iron oxide pigment producers inWestern Europe:

Western European Producers ofSynthetic Iron Oxide Pigments—2001

Bayer58%

K-L Holdings9%

Elementis8%

Heubach5%

Other20%

Salient statistics

Synthetic iron oxides account for the largest percentage of color pigment production in the world andWestern Europe is by far the leading producer. Western European production of iron oxide pigments hasreached very high levels, particularly in the traditional areas—building materials, paints and coatings andplastics.

Below is a summary of 1999 supply/demand for iron oxides in Western Europe.

Western European Supply/Demand for Iron Oxide Pigments—1999(thousands of metric tons)

Natural Synthetic Total

Production 58 327 385Imports neg 83 83Exports 2 116 118Apparent Consumption 56 294 350 SOURCES: (A) Eurostat, Statistical Office of the European Community.

(B) Der Aussenhandel Österreichs, Serie 1A, Öster-reichisches Statistisches Zentralamt.

(C) National foreign trade statistics.

(D) CEH estimates.

Production

During the last five years the overall capacity utilization for iron oxides has improved for most producers,particularly for synthetic pigments. Of the total iron oxide pigment production in Western Europe, Bayeraccounted for about 74%. The company’s main production plant is located in Krefeld, Germany but the



group also has plants in the United States and at a joint venture plant in China (Bayer ShanghaiPigments), with a nameplate capacity of 20 thousand metric tons per year. The next-largest marketparticipants are Elementis and K-L Holdings (acquirer of Laporte).

Natural iron oxide pigments. In 1999, the Western European production of natural iron oxide pigmentsaccounted for about 15% of global iron oxide pigment production, down from 17% in 1996. Over the lastten years this share has decreased because of lower output and plant closures that have been only partiallyoffset by new capacities (e.g., Rana Gruber, Norway). Particularly, output from Spain has dropped to lessthan half the output of the early 1990s.

Natural iron oxide pigments have some market niches in which they can compete very well with thesynthetic grades. Some of these niches are primarily in the building materials industry and in fertilizers. Inother applications natural iron oxide pigments, particularly micronized grades, can also compete withsynthetic pigments.

Synthetic iron oxide pigments. This group of iron oxide pigments includes the intentionally produced ironoxides as well as the low-grade by-product pigments obtained from scrap iron from metal works. Scrapiron oxide is used almost entirely in applications where quality of the pigment is not overly critical,primarily in the construction industry for the production of bricks and concrete. This large volume of low-grade iron oxide pigments have been excluded from this report.

Because of product consistency, higher tinting strengths and more intense color shades, as well as theconsiderably lower content of problematic heavy metals (e.g., arsenic, lead, cadmium), synthetic ironoxide pigments have further increased their share over natural iron oxide pigments in most markets.

In Western Europe, synthetic iron oxide pigments are produced by a variety of processes and rawmaterials. For example, Bayer obtains crude iron oxide pigments as a coproduct of aniline production(only a small portion of Bayer’s aniline production is based on the reduction process with iron scrap). Itcan be argued, however, that the iron oxide pigment obtained through this process is the main product andnot the aniline. Aniline is generally manufactured through different processes, which are moreeconomical. The production of iron oxide pigments from the aniline process is governed by the demandfor aniline and the economics of the processes, taking the value of the coproduct iron oxide into account.

The following table lists official production data for iron oxide pigments produced in Spain:



Spanish Production of Iron Oxide Pigments(thousands of metric tons)

Natural Synthetic

1970 51.6 1.0

1975 51.9 1.2

1980 na 2.21981 na 2.01982 na 2.01983 na 2.01984 na 2.0

1985 na 2.01986 na 2.51987 na 3.11988 40.0 3.2

1993 25.0 4.0

1996 20.0 4.01997 22.0 4.01998 22.0 4.01999 22.0 4.0 SOURCES: (A) La Industria Química en Cifras, Federación

Empresarial de la Industria Química Española(data for 1970-1996).

(B) Mineral Industry Surveys, U.S. Department ofthe Interior, U.S. Geological Survey (data forNATURAL, 1997-1999).

(C) CEH estimates (all other data).

The following table shows Western European production of both natural and synthetic iron oxidepigments by country since 1983:



Western European Production of Natural and Synthetic Iron Oxide Pigments(thousands of metric tons)

AustriaBelgium/

Luxembourg France

Germany,Federal

Republic of Italy

1983 15 10 19 274 181984 15 10 18 270 19

1985 15 10 18 269 201986 15 10 18 264 221987 15 10 19 264 231988 15 10 17 265 241989 15 4 16 260 26

1990 14 3 15 250 241991 12 3 16 255 251992 12 3 15 240 251993 8 2 13 221 241994 na na na na na

1995 na na na na na1996 8 2 16 226 32

1999 8 -- 2 282 33

Norway Spain SwedenUnited

Kingdom Total

1983 neg 38 0.3 45 4201984 neg 39 0.3 45 416

1985 neg 40 0.3 48 4201986 neg 40 0.4 50 4191987 neg 40 0.7 55 4271988 neg 45 1 50 4271989 neg 48 1 45 415

1990 1 55 1 40 4031991 2 58 1 38 4101992 3 60 1 35 3941993 4 29 1 32 3341994 na na na na 340

1995 na na na na 3401996 4 24 1 32 345

1999 -- 26 -- 34 383 SOURCE: CEH estimates.

The following table shows a breakdown of 1999 production of natural and synthetic iron oxide pigmentsin Western Europe by country:



Western European Production of Natural andSynthetic Iron Oxide Pigments—1999


Natural Synthetic Total

Austria 7 1 8France 1 <1 2Germany 4 278 282Italy 1 32 33Spain 22 4 26United Kingdom -- 34 34

Total 35 348 385

Percent 9% 91% 100% SOURCES: (A) Mineral Industry Surveys, U.S. Department of

the Interior, U.S. Geological Survey (data forNATURAL).


Black iron oxide pigments, particularly PBk-11, are the second-largest group of black pigments (aftercarbon black) produced and consumed in Western Europe. An estimated 35 thousand metric tons of blackiron oxides were produced in Western Europe in 1999.

Consumption

It is estimated that Western Europe consumed approximately 350 thousand metric tons of iron oxides in1999.

The largest market segment is construction. Other markets are considerably smaller, but more attractive interms of price premiums. The increased supply of low-grade pigments from by-product sources (such asfrom iron works that recover scrap iron oxide from metal pickling operations) has pushed traditionalsuppliers even more into the higher-value-added markets. Iron oxide pigments, because of their lowtoxicity, have partially replaced heavy metal–based inorganic pigments in certain applications where thelow brightness of iron oxide pigments is not a critical issue. (Iron oxide pigments, and in particular ironoxide yellow, are often mixed with organic pigments in order to match the standard shades in the finalproducts.) The volume gained from this substitution process has been small, however, and the process isalmost complete, at least in Western Europe.

The following table shows the Western European consumption of natural and synthetic iron oxidepigments:



Western European Consumption of Natural andSynthetic Iron Oxide Pigments


1985 3671986 3631987 3761988 3481989 365

1990 3511991 3521992 3021993 2721994 280

1995 2901996 3061997 3201998 3341999 350 SOURCE: CEH estimates.

The table and graph that follow give a breakdown of Western European consumption of iron oxidepigments by end use for 1999:

Western European Consumption of Iron OxidePigments by End Use—1999a



Building Materials 210 60Paints and Coatings 87 25Plastics 16 5Magnetic Applicationsb 10 3Paper Industry 9 3Foundry Sandsb 6 2Food Colorants/Nutritional Additivesb 4 1Enamels and Ceramics 3 1Catalystsb 3 1Otherc 2 <1

Total 350 100% a. Natural and synthetic iron oxide pigments.

b. These applications do not depend on the coloring properties of iron oxidepigments.

c. Includes colorants for cosmetics and pharmaceuticals.




Western European Consumption ofIron Oxide Pigments by End Use—1999

BuildingMaterials

65%

Other1%

Paints andCoatings

27%

Plastics4%

Paper2%

Enamelsand

Ceramics1%

One of the higher-value-added forms of iron oxide pigments are the transparent, micronized grades (witha diameter between 0.01 and 0.001 micrometer), which are sold primarily to the paints (e.g., for woodpainting) and plastics industry and for specialty applications such as cosmetics, pharmaceuticals or specialpaper. Total consumption of transparent iron oxide pigments in Western Europe is estimated at less than 4thousand metric tons in 1999. This volume is included in the above table. The following graph shows theestimated breakdown by market:

Western European Consumption ofTransparent Iron Oxide Pigments—1999

Piants andCoatings

50%

Other7%

Plastics13%

SpecialPaper13%

Cosmetics10%

PharmaceuticalColorants

7%

Another higher-value-added form of iron oxide pigments is FDA-grade synthetic iron oxide. Totalconsumption of FDA-grade iron oxide pigments, including transparent and nontransparent grades, isestimated at about 4 thousand metric tons in 1999.



Western European Consumption ofFDA-Grade Iron Oxide Pigments—1999

Cosmetics47%

Pet Food25%

Special Paper12%

Pharmaceuticals16%

Total = 4 Thousand Metric Tons

Building materials. The building materials industry is one of the largest consumers of pigments,particularly iron oxide pigments. The pigments are used for a wide variety of applications, the mostimportant of which are for colored asphalt and for coloring roof tiles, bricks, cement, mortar, preformedconcrete blocks for paving and noise-abatement (sound) walls, and other building materials.

In Western Europe, both natural and synthetic iron oxide pigments are used in this application. In many ofthese end uses intentionally produced synthetic pigments have come under pressure from low-gradepigments, particularly from China.

During the 1992-1993 European economic recession, consumption of iron oxide pigments wasparticularly hard-hit by lower construction activity and lower-volume purchases of pigmented materialsby the private and public sectors. In particular, demand for color building products such as concreteinterlocking paving blocks and other products declined. Between 1996 and 1999, consumption increasedsteadily as the main consuming applications recovered.

It is expected that construction activities will continue to increase over the next few years and thatconsumption of iron oxide pigments will increase accordingly.

Paints and coatings. In Western Europe, paints and coatings represent the second-largest segment for ironoxide pigments. It is estimated that in 1999, some 87 thousand metric tons of iron oxide pigments wereconsumed for the manufacture of paints and coatings.

The larger share of iron oxide pigments used in paints and coatings are synthetic pigments, but naturaliron oxide pigments are also widely used, particularly in applications with lower-quality requirements(e.g., primers and undercoats). In these coatings, iron oxide pigments often function as an anticorrosioninhibitor rather than as a coloring matter (e.g., micaceous iron oxide).

A specialty group of iron oxide pigment used in paints and coatings are the transparent pigments. It isestimated that in 1999, Western European consumption for this application was less than 2 thousandmetric tons. The main use of transparent pigments is in the production of metal-effect coatings (i.e., in



combination with aluminum pigments) and for coloring PET bottles and spin-dyed fibers. Recently therehas been substitution pressure from luster pigments, some of which are also based on iron oxide.

Plastics. Plastics are the third-largest application for iron oxide pigments in Western Europe. One of thelarger applications of iron oxide pigments in this segment is the production of plastic trash bags, whichare available in brown, yellow, gray and black colors. It is unlikely that iron oxide pigment consumptionin this application will grow more than 2-3% per year in the near future. In the past, the use of certain ironoxide pigments was often problematic because of their relatively low temperature stability during theplastics processing step. Newer, coated pigments have, however, been developed that can be used withpractically any plastic. Iron oxide pigments have also been used to replace the toxic chromate pigmentswherever possible. However, this substitution is believed to be complete.

Magnetic applications (ferrites and other uses). Magnetic iron oxide pigments are used in a wide range ofapplications, such as the production of ferrites and magnetic information carrier materials. Although thenumber of carrier material pieces (e.g., discs, magnetic cards) produced has increased significantly, thevolume of magnetic iron oxide pigments consumed in Western Europe is expected to decrease for thefollowing reasons:

● A sharp decline in demand for audio cassettes because of replacement by CDs

● Growing migration from video cassettes to DVDs

● Replacement of computer floppy disks and other magnetic media with recordable CD-ROMs

● Reduced size of, and thinner coatings on, the carrier products

● Use of other, more effective magnetic materials, such as chrome oxide

● Migration of media production to lower-cost countries in Asia

It is expected that these trends will continue and future consumption of magnetic iron oxide pigments inWestern Europe will eventually stagnate and decline.

Paper. In this application iron oxide pigments are used primarily for the production of decorativelaminates destined for the furniture industry. Other smaller applications include the production of kraftpaper and paper board used by the packaging industry. Also, FDA-grade micronized pigments are used inspecial papers which are likely to get in contact with lips (e.g., wrapping paper, cigarette paper). The useof pigments in paper has grown, but future growth is difficult to determine.

Food colorants/nutritional additive. Iron oxide pigments are among the main coloring pigments in foodand feed products. They are used particularly in pet foods, where they serve as a coloring agent as well asa nutritional additive. Understandably, in food products only FDA-grades of iron oxide pigments areacceptable.

Because of toxicological concerns, there is a clear swing away from the use of synthetic organic pigmentstoward the use of iron oxide pigments in food and feed products. However, the volumes gained aresmall—particularly in relation to the changes in consumption in other sectors.

It is believed that, because of an increase in the number of pet owners, demand for colored pet foods willincrease.



Cosmetics. Natural and especially synthetic iron oxide pigments are the most important of the colorpigments used in cosmetic products in terms of volume consumed. Various grades and types are used tocolor lipsticks, compact makeup, eyebrow pencils, cover ointments and so forth.

In cosmetics, micronized iron oxide pigments are favored over organic pigments because of lowerconcern about toxicological aspects of their consumption, particularly in relation to mucous membraneexposure.

The total Western European consumption of iron oxide pigments in cosmetic products in 1999 isestimated to have been about 400 metric tons.

The consumption volume of iron oxide pigments used for cosmetics is unlikely to change significantly,since it is related to the growth of the Western European population. Obviously, fashion trends and thestill-decreasing age at which cosmetics use begins will also have some impact on the consumption of ironoxide pigments.

Other. Iron oxides have a number of other applications but they are much smaller than the buildingmaterials and the markets discussed above.

Price

The Western European iron oxide market, although dominated by a few domestic producers, has becomevery competitive, with increased imports (especially from China) having caused prices for iron oxidepigments to decline considerably during the past ten years. Pressures from consumers, such as the paintsand coatings industry, have also had a negative impact on prices. Because of the current business climateand the new capacity that has been built, prices are expected to remain unchanged or decline in inflation-adjusted terms for the next few years.

The following table gives an estimate of the average Western European prices for iron oxide pigments:

Western European Average Import Trade Valuesfor Iron Oxide Pigments(Euros per metric ton)

Synthetic Iron Oxide Pigments1997 7281998 7401999 792

Iron Oxide Earth Colors1997 1,0721998 6751999 569

SOURCE: Eurostat.



Trade

Imports. Western European imports of iron oxide pigments increased significantly in recent years. In1999, the total volume imported was 85 thousand metric tons, of which 70% came from China.

Western European imports of iron oxide pigments in selected years are shown in the following table:

Western Europe Imports of Iron Oxide Pigments by Region of Origina


North AmericaCentral

UnitedStates Canada

and SouthAmerica

EasternEurope Africa

MiddleEast

1985 26.3b -- -- 0.9 -- --

1990 3.4 neg 0.1 2.0 neg 0.2

1995 3.6 neg 0.1 6.0 0.1 0.3

1999 4.7 neg 0.1 1.4 0.2 0.1

AsiaAustralia and

China Japan Other Oceania Total

1985 --c 0.6 0.3 -- 28.1

1990 8.9 0.7 0.7 0.1 16.1

1995 52.7 4.1 6.1 0.1 73.1

1999 60.2 2.8 15.8d 0.1 85.4 a. Includes iron oxides, iron hydroxides and earth colors. Data exclude intra–Western European

trade.

b. Actual data are believed to be lower.

c. Included in OTHER.

d. Includes non-EU suppressed imports.

SOURCES: (A) U.S. Department of Commerce, Bureau of the Census (data for UNITEDSTATES).

(B) NIMEXE, Analytical Tables of Foreign Trade: Products-Countries, Eurostat,Statistical Office of the European Community.

(C) National foreign trade statistics.

(D) CEH estimates.



Bayer started a joint venture pigments project in Shanghai in 1995, with a 20 thousand metric ton-per-year iron oxide pigment grinding and mixing plant. Some production from this plant accounts for part ofthe exports from China to the European market.

Exports. Western Europe is a large net exporter of iron oxide pigments. Total volumes exported in 1999were reported at 118 thousand metric tons.

More than 98% of all iron oxide pigments exported were synthetic pigments. Of this group, the largestsingle-volume product exported was synthetic iron oxide yellow (PY-42) produced by Bayer AG.

Chrome Pigments

Producing companies

The following table lists Western European producers of chromium pigments in 2000:

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Western European Producers of Chrome Pigments—2001

Lead-Containing Chrome Pigments Chromium Oxide


ChromeOrange(PO-21)

Basic LeadSilico-

chromate(PO-21:1)

Molyb-date

Orange(PR-104)

ChromeYellow(PY-34)

ChromeGreen

(PG-15)

BariumChromate

(PY-31)

ZincChromate

(PY-36)

Stron-tium

Chromate(PY-32)

Anhy-drousGreen

(PG-17)

HydratedOxide

(PG-18)

ChromiumPhos-phate

(PG-17:1)

Austria

Habich Pigments ChemischeFarbenfabrik H. M. Habich AG

Leiben X X

Belgium

Fabrique de CouleursHilaire Grootaert

Drongen X X X

Gebroeders Cappelle nvMenen X X X

France

Cappelle Frères SARLHalluin X X X X

Société Nouvelle des CouleursZinciques SA—SNCZ

Bouchain X X X

Germany

BASF Lacke + Farben AktiengesellschartBesingheim XKöln X X X X X X

Bruchsaler Farbenfabrik GmbH& Co. KG

Bruchsal X X X

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Western European Producers of Chrome Pigments—2001 (continued)



ChromeOrange(PO-21)

Basic LeadSilico-

chromate(PO-21:1)

Molyb-date

Orange(PR-104)

ChromeYellow(PY-34)

ChromeGreen

(PG-15)

BariumChromate

(PY-31)

ZincChromate

(PY-36)

Stron-tium

Chromate(PY-32)

Anhy-drousGreen

(PG-17)

HydratedOxide

(PG-18)

ChromiumPhos-phate

(PG-17:1)

Germany (continued)

Dr. Hans Heubach GmbH & Co. KGLangelsheim X X

Italy

Kohlberg, Kravis, Roberts(Laporte Italia SpA)

Silo DivisionTorino X X X X

Società Italiana Ossidi Ferro SpAVerona X X

Netherlands

Ciba Specialty Chemicals Maastricht B.V.Maastricht X X

A. Vossen Pigment BVVenlo-Blerick X X

Norway

Waardals Kjemiske Fabrikker A/SAskoey X

Portugal

Augusto Gomes dos SantosVila Nova de Gaia X

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Western European Producers of Chrome Pigments—2001 (continued)



ChromeOrange(PO-21)

Basic LeadSilico-

chromate(PO-21:1)

Molyb-date

Orange(PR-104)

ChromeYellow(PY-34)

ChromeGreen

(PG-15)

BariumChromate

(PY-31)

ZincChromate

(PY-36)

Stron-tium

Chromate(PY-32)

Anhy-drousGreen

(PG-17)

HydratedOxide

(PG-18)

ChromiumPhos-phate

(PG-17:1)

Spain

Colores Hispania, S.A.Barcelona X X X X X X

Intermedios Orgánicos,SA—INTORSA

Moncada i Reixach X X X

Nubiola, S.A.Barcelona X X X X X X

United Kingdom


Milton Keynes X

Lead Chrome Colours Ltd.Spondon X X




Salient statistics

Western European Supply/Demand for Chrome Pigments—1999(thousands of metric tons)

ChromatePigmentsa

ChromiumOxides Total

Production 17.3 24.0 41.3Imports 3.5 0.5 4.0Exports 7.8 2.0 9.8Apparent Consumption 13.0 22.5 35.5 a. Includes lead chromates but also small volumes of barium, zinc and

strontium chromate corrosion-inhibiting pigments.

SOURCES: (A) NIMEXE, Analytical Tables of Foreign Trade: Products-Countries, Eurostat, Statistical Office of the EuropeanCommunity.

(B) CEH estimates.

Total Western European production of lead chromate pigments (including small amounts of thecorrosion-inhibiting barium chromate, zinc chromate and strontium chromate), is estimated to have been17.3 thousand metric tons in 1999. Chromium oxide production is estimated to have been higher, at 24thousand metric tons.

Because of toxicological and environmental considerations, the production and consumption of chromepigments have decreased and this trend is expecte to continue for some time.

Consumption

Chromium-containing pigments are an essential group of pigments with a wide range of applications.While lead represents a clear toxicological and environmental problem, chromium is less of a concern.Recent consumption in selected years is shown in the following table:

Western European Consumption of Chrome Pigments(thousands of metric tons)

ChromatePigmentsa

ChromiumOxides Total

1993 17.5 23.0 40.51996 15.0 22.5 37.51999 13.0 22.5 35.5 a. Includes lead chromates but also small volumes of barium, zinc

and strontium chromate corrosion-inhibiting pigments.


Lead chromates. Consumption of chromate pigments has declined in Western Europe by nearly 25% overthe volumes in 1993. As legislation regarding the production and use of pigments becomes more severeand as regulations will be increasingly implemented, it can be assumed that the consumption of lead-



containing chrome pigments will gradually decrease. In the Netherlands, for example, the use of lead-containing pigments were phased out in the year 2000 and it is expected that other, larger consumingcountries will follow suit.

Major companies that had used chrome pigments in the past are gradually substituting chromates withpigments that do not contain lead, such as bismuth vanadate or in the corrosion-protection pigmentssegment, with products such as aluminum and zinc phosphates. Iron oxide pigments, mixed with organicpigments to achieve higher brightness, are also used as a substitute in certain applications.

As a result of these environmentally driven changes, the Western European consumption of leadchromates has decreased substantially during the last decade. Western European consumption of leadchromate pigments in 1999 is estimated to have been about 13 thousand metric tons, down from about17.5 thousand metric tons in 1993. These figures include small volumes of the anticorrosion pigmentsbarium, zinc and strontium chromate. The following table lists the Western European consumption of leadchromate pigments by market segment:

Western European Consumption of Lead Chromate Pigments —1999a



Paints and Coatings 7.9 61Plastics 4.4 34Laminates 0.6 4Printing Inks 0.1 1

Total 13.0 100% a. Includes small volumes of corrosion-inhibiting barium, zinc and

strontium chromate pigments.


During 1999-2004, it is expected that the consumption of lead chromate pigments, especially in the paintsand coatings segment, will decrease further. Even in traffic-grade paints, a segment in which leadchromates have outstanding properties, substitution is still taking place. One of the inorganic substitutionpigments is bismuth vanadate, a yellow pigment that has properties similar to chrome yellow. Some of theorganic pigments substituting for yellow and orange chrome pigments are based on benzimidazoloneyellow and DPP red. These organic pigments all have a drawback of one kind or another, the mostimportant one being that they are clearly more expensive than chrome pigments.

Chromium oxide. The excellent chemical and heat stability of chromium oxide make it a very versatilepigment with outstanding fastness properties. One of the obvious drawbacks of chromium oxide is,however, its dull shade. While lead chromate pigments pose environmental and toxicological problems,chromium oxide pigments are unlikely to be influenced much by regulations. Consumption of greenchromium oxide pigment in Western Europe in 1999 is believed to have been 22 thousand metric tons.The end-use consumption pattern is shown in the following table:



Western European Consumption of GreenChromium Oxide Pigments—1999



Paints and Coatings 11.5 52Building Materials 6 27Plastics 2 9Enamel and Ceramics 1.5 7Printing Inks neg negOther 1 5

Total 22.0 100% SOURCE: CEH estimates.

Chromium oxide is also used in technical nonpigment applications. This use of chromium oxide is notdiscussed here and the data shown are for pigment-grade chromium oxide only.

The paint and coating industry is clearly the largest market for chromium oxide pigments. In thisapplication, chromium oxide pigments are used particularly where the fastness properties are required andwhere its relatively dull shade is acceptable. (This shortcoming is solved in many cases by adding high-performance organic yellow pigments, which change the hue to a brighter green. Often, other pigmentcombinations are formulated in order to derive the required shade.) A further characteristic of chromiumoxide pigments is their high hardness, which can create a problem in some applications because ofabrasion. In the building products industry, chromium oxide pigments are used to color cement and chalk-based products. In plastics, chromium oxide pigments are widely used, particularly in technical goods(e.g., machinery parts, communal trash containers, garden furniture, bottle crates).

Chromium oxide pigments are being used in practically every possible pigment application; the producthas found acceptance even in cosmetics. The generally excellent properties of chromium oxide pigments(fastness, heat stability, etc.) will keep demand growing slowly in Western Europe. There is, however,competition from other green pigments, such as phthalocyanine pigments, which have a brighter colorshade and combinations of yellow and blue pigments.

Barium, zinc and strontium chromate. Consumption of these anticorrosion pigments has been underenvironmental pressure and use has started to decline in certain applications. Strontium chromate is,however, still considered an excellent pigment, whose properties are unmatched by any other anticorrsionpigment. It remains the specified anticorrosion pigment for aircraft and military primers. Consequently,demand for this pigment has been quite strong. Nevertheless, in the long term, consumption of strontiumchromate will likely decline as new anticorrosion pigments or systems become accepted.

Price

The average price of chromium-based pigments imported to Western Europe in 1998 was 3.38 euros perkilogram; in 1999 the average price rose slightly to 3.39 euros per kilogram. Prices are expected todecline as consumption falls.



Trade

Imports. Imports of chromium-containing pigments into Western Europe represent about 13% ofconsumption. The following table gives an indication of chrome-containing pigment imports into WesternEurope in 1995 and 1999:

EU Imports of Chrome-Containing Pigmentsand Pigment Preparations—1995 and 1999a

(metric tons)

1995 1999

Canada 1,169 1,776Hungary 351 462Colombia na 215United States 112 179China 145 54Other 119 1,267

Total 1,896 3,953 SOURCE: NIMEXE, Analytical Tables of Foreign Trade:

Products-Countries, Eurostat, Statistical Office ofthe European Community.

EU imports of chrome-containing pigments have grown since 1995, despite declining consumption. Themajority of imports originated from Canada (Dominion Colour Corporation) and were shipped mainly tothe United Kingdom. There were also shipments received from Hungary (Holland Colours Hungaria Kft).China has decreased its share since 1995, while the United States has grown, and Colombia has alsoemerged as an important source.

Exports. Exports of chrome pigments from Western Europe totaled about 9.8 thousand metric tons in1999, up from about 7.4 thousand metric tons in 1995. The following table gives an indication of chrome-based pigments exports by major destinations for 1995 and 1999:

EU Exports of Chrome-Containing Pigments and Pigment Preparations—1995 and 1999a

(metric tons)

Destination 1995 1999

United States 588 879Japan 459 609Saudi Arabia 217 590Turkey 456 576Taiwan 360 438Korea, Republic of 444 388Other 4,886 6,272

Total 7,410 9,752 a. European Union tariff code number is 3206.2000.

SOURCE: NIMEXE, Analytical Tables of Foreign Trade:Products-Countries, Eurostat, Statistical Office ofthe European Community.



Exports are expected to eventually decline as lead chromate paint bans become enforced in developingcountries, as in developed countries.


Summary

In Western Europe, complex inorganic color pigments (formerly known as mixed-phase or mixed-metaloxide pigments) are a small but increasingly important group of inorganic pigments. Because of thedecreasing acceptance of cadmium-based pigments as a result of environmental and toxicologicalconcerns, the use of complex inorganic color pigments, sometimes combined with organic pigments, is inthe plastics applications.

Western European Supply/Demand forComplex Inorganic Pigments—1999


RutilePigments

SpinelPigmentsa Total

Capacity na na 18.0Production 9.2 6.1 15.3Imports 0.2 0.1 0.3Exports 4.5 3.0 7.5Apparent Consumption 4.9 3.2 8.1 a. Includes cobalt-based complex inorganic pigments.


Producing companies

The following tables list Western European producers of cobalt-based and other-than-cobalt-basedcomplex inorganic pigments:

Western European Producers of Cobalt-Based Complex Inorganic Pigments—2001


(PBk-27)Blue

(PB-28)Blue

(PB-36)Green

(PG-19)Green

(PG-26)Green

(PG-50)

Germany

BASF AktiengesellschaftLudwigshafen X X X

BASF Pigment GmbHKöln X X

Bayer AGLeverkusen X X

Cerdec AG, Keramische Farben(owned 70% by Degussa AG and30% by Ciba Specialty Chemicals AG)

Bonn X X X X



Western European Producers of Cobalt-Based Complex Inorganic Pigments—2001 (continued)


(PBk-27)Blue

(PB-28)Blue

(PB-36)Green

(PG-19)Green

(PG-26)Green

(PG-50)

Germany (continued)

Dr. Hans Heubach GmbH & Co. KGLangelsheim X X

Netherlands

Ferro (Holland) BVRotterdam X X X

United Kingdom

Johnson Matthey Colour andCoatings Division

Ceramics DivisionStoke on Trent X X X X


Western European Producers of Other-Than-Cobalt-Based Complex Inorganic Pigments—2001

Spinel-Structured Pigments Rutile-Structured Pigments


Brown(PBn-29)

Brown(PBn-31)

Yellow(PY-119)

Brown(PBn-24)

Yellow(PY-53)

Yellow(PY-157)

Yellow(PY-164)

Germany

BASF AktiengesellschaftLudwigshafen X X X X X X

BASF Pigment GmbHKöln X

Cerdec AG, Keramische Farben(owned 70% by Degussa AG and30% by Ciba Specialty ChemicalsAG)

Bonn X X

Dr. Hans Heubach GmbH& Co. KG

X

Langelsheim X

Netherlands

Ferro (Holland) BVRotterdam X



Western European Producers of Other-Than-Cobalt-Based Complex Inorganic Pigments—2001 (continued)

Spinel-Structured Pigments Rutile-Structured Pigments


Brown(PBn-29)

Brown(PBn-31)

Yellow(PY-119)

Brown(PBn-24)

Yellow(PY-53)

Yellow(PY-157)

Yellow(PY-164)

United Kingdom

Johnson Matthey Colour andCoatings Division

Ceramics DivisionStoke on Trent X X X X


Production

The Western European production of complex inorganic color pigments is estimated at about 15.3thousand metric tons in 1999. This volume accounts for the rutile and spinel type of pigments, which alsoincludes cobalt pigments. This volume also includes pigments that are sold to the enamels and ceramicsindustry.

The major producer of these pigments is BASF, followed by Cerdec AG (owned 70% by Degussa AGand 30% by Ciba Specialty Chemicals AG). BASF and Cerdec both offer a wide range of complexinorganic color pigments and pigment mixtures. Heubach has recently introduced encapsulated rutile-structured pigments that can withstand even higher temperatures.

Consumption

Western European consumption of complex inorganic color pigments was about 8.1 thousand metric tonsin 1999. The following table gives an estimate on Western European consumption of complex inorganicpigments by specific pigment:

Western European Consumption of ComplexInorganic Pigments—1999(thousands of metric tons)

Rutile PigmentsChrometitan Yellow (PBr-24) 3.3Nickeltitan Yellow (PY-53) 1.1Manganetitanium Yellow (PY-164) 0.5

Total 4.9

Spinel PigmentsCobalt Blue (PB-28/36) 1.3Cobalt Green (PG-50) 0.9Other 1.0

Total 3.2

Total 8.1 SOURCE: CEH estimates.



The main applications of complex inorganic color pigments in Western Europe are shown and discussedbriefly below.

Western European Consumption ofComplex Inorganic Pigments by End Use—1999


RutilePigments

SpinelPigments Total

Ceramics and Glass 0.5 2.5 3.0Plastics 2.3 0.5 2.8Paints and Coatings 1.6 0.1 1.7Building Materials 0.3 -- 0.3Other 0.2 0.1 0.3

Total 4.9 3.2 8.1 SOURCE: CEH estimates.

Ceramic and glass materials. Because of their heat stability, complex inorganic color pigments are usedfor coloring glass and ceramic materials. Western Europe (in particular, Italy and Germany, followed bythe United Kingdom, Spain and France) is the world’s largest producing region for ceramic goods andconsumption of complex inorganic color pigments in this segment is the most important in volume terms.

The ceramic goods industry is faced with increasing import penetration, particularly from China and otherAsian countries, as well as from Eastern Europe and Brazil. Imports of ceramic goods (and in particulartiles) continue to grow, impacting the Western European growth potential of pigments for ceramic andglass materials. As a result, it is expected that during 1999-2004, production of standard-grade ceramicswill stagnate and that a gradual shift towards more premium ceramic products will take place. Theconsumption of complex inorganic pigments in this segment will grow by only about 2.0% per year. Theexpected growth rate is slightly higher than the estimated production growth of the ceramic productsindustry, as there will be some substitution of cadmium pigments.

Plastics. Plastics is one of the major industries consuming complex inorganic color pigments in WesternEurope. The pigments are used in a variety of commodity and high-performance plastics. The largestvolumes are used in PVC and polyethylene.

Complex inorganic color pigments are increasingly important in applications where cadmium, chromateand molybdate pigments can no longer be used. In particular, the consumption of Ni-Cr-Ti-basedpigments is growing steadily. It is estimated that during 1999-2004 the consumption of complex inorganiccolor pigments for plastics will grow at an average rate of about 3-4% per year.

Paints and coatings. Complex inorganic color pigments are increasingly important in the paints andcoatings industry, since they have special characteristics. These pigments show good to excellentperformance, particularly in exterior high-grade house paints, auto enamels and coil coatings. Currently,the only application of significance, however, is believed to be for camouflage paints for militaryapplications.

During the last few years, because of environmental and toxicological legislation, some of these complexinorganic color pigments have taken a small, but increasing market share from cadmium- and chromate-based pigments. Particularly the various shades of PY-53 have gained in importance.



Trade

No data on Western European trade in complex inorganic pigments are reported. It is estimated, however,that Western Europe was a net exporter of approximately 7.2 thousand metric tons in 1999. There aresome imports of complex inorganic pigments from the United States (primarily from Ferro). It is thoughtthat the United States is one of the main export destinations and that exports to Asian countries and Brazilare also significant.

Ultramarine Pigments

Summary

Ultramarine pigments, which can be produced in shades of blue, green, violet or red, have a long historyof use in Western Europe. The fairly good performance characteristics of these pigments and theirrelatively low price led to widespread use. The production process, however, is energy-intensive andtime-consuming—it can take up to twenty days to produce a batch. The time factor is one of the mainreasons many companies have stopped producing these pigments.

Holliday Pigments (formerly Reckitt’s Colors), with works in France and the United Kingdom, is thelargest ultramarine pigments producer in the world, with a combined annual production capacity ofapproximately 14 thousand metric tons. The next biggest producer is Nubiola, which operates two plants,one near Barcelona, Spain and the second in Agualva, Portugal.

Between 1996 and 1999 the Western European ultramarine pigments market shifted from being exportoriented to being import reliant. This transition coincided with the loss of the detergent market segmentthat had used low-grade ultramarine pigments; they were replaced by organic optical brightners.

The following table summarizes Western European supply/demand for ultramarine pigments:

Western European Supply/Demand for Ultramarine Pigments(thousands of metric tons)

1993 1996 1999

Capacity 16.5 16.5 16.5Production 14.5 14.1 3.6Imports 0.4 1.3 3.0Exports 9.7 10.0 0.3Apparent Consumption 5.2 5.4 6.3 SOURCES: (A) NIMEXE, Analytical Tables of Foreign Trade:

Products-Countries, Eurostat, Statistical Office ofthe European Community.

(B) CEH estimates.

Producing companies

The following table lists producers of ultramarine pigments in Western Europe:



Western European Producers of Ultramarine Pigments


Annual Capacityas of 2001

(thousands ofmetric tons)

Blue(PB-29)

Violet(PV-15)

Austria

Habich Pigments ChemischeFarbenfabrik H. M. Habich AG

Leiben na X

France

Holliday Pigments S.A.Comines 6 X X

Portugal

Nubiola - ProdutosQuímicos, S.A.

Agualva Cacém na X

Spain

Nubiola, S.A.Barcelona 2.5 X X

United Kingdom

Holliday Pigments LimitedHull 8 X X

Total >16.5 SOURCE: CEH estimates.

Production

It is estimated that in 1999, Western Europe produced about 4 thousand metric tons of ultramarinepigments and preparations, less than a third of total world production, down from about 14 thousandmetric tons in 1996. Production is declining in Western Europe because of high production costs.Ultramarine pigments have been produced in two grades—a low grade, used primarily as an opticalbrightener in laundry detergent and a high grade, used in all other, more durable applications. Theproduction and consumption of the low-grade pigment has decreased because of replacement by moreeffective organic optical brighteners.

Consumption

In 1999, Western Europe consumed an estimated 6.3 thousand metric tons of ultramarine pigments andpreparations. Demand for high-grade ultramarine pigments has increased steadily in the last several yearsbecause of their safety and versatility.



Ultramarine pigments are used in practically all types of color applications (e.g., plastics, paints, printinginks, paper and paper coating, detergents, cosmetics and soaps); there are only a few applications forwhich these pigments are not recommended (e.g., air-drying paints for outdoor use in urban atmospheres).It is expected that Western European consumption of ultramarine pigments will continue to grow duringthe next few years, possibly at a rate above GDP growth. It is expected that consumption will be driven inpart by the continued substitution of ultramarine pigments for pigments with toxic properties.

The following pie chart shows Western European consumption of ultramarine pigments (excluding use indetergent) in 1999:

Western European Consumption ofUltramarine Pigments—1999

Paper4%


Plastics62%Paints and

Coatings10%

WritingInks7%

PrintingInks6%

ArtistColors

5%

Cosmetics3%

Other3%

The excellent heat stability of ultramarine blue pigments and the pleasant color shades achieved, arereasons for their wide acceptance in plastic coloration.

Price

The average Western European import value for ultramarine pigments in 1999 was 1.34 Euros perkilogram, up from 1.18 euros per kilogram in 1998.

Trade

Western European exports of ultramarine pigments have declined since 1996, from 10 thousand metrictons to 297 metric tons in 1999. The drop is attributable to greater production in the Far East.

Imports. Imports of ultramarine pigments into Western Europe were negligible in the past. Since the mid-1990s, however, imports increased and reached about 3.0 thousand metric tons in 1999. The dominantcountry of origin was Romania.



Shown below are the Western European imports of ultramarine pigments and preparations from outsidethe region.

EU Imports of Ultramarine Pigments by Country of Origina

(metric tons)

Origin 1995 1999

Romania 754 1,345India 212 869Colombia 108 516Japan 148 213United States 0 90Other 6 25

Total 1,228 3,058 a. European Union tariff code number is 3206.4100.

SOURCE: NIMEXE, Analytical Tables of Foreign Trade:Products-Countries, Eurostat, Statistical Office of theEuropean Community.

The following table shows historical Western European imports of ultramarine pigments andpreparations:

Western European Imports of UltramarinePigments and Preparationsa

(metric tons)

1980 2,5521981 2,6901982 3,0091983 3,7511984 3,025

1985 2,6631986 3,3041987 3,1761988 3,5001989 3,816

1990 4,2591991 4,5511992 4,2031993 5,2091994 6,782

1995 6,725

1997 2,9361998 2,7931999 3,058



a. European Community 1989-1995, European Union 1997-1999.

SOURCE: NIMEXE, Analytical Tables of Foreign Trade:Products-Countries, Eurostat, Statistical Office of theEuropean Community (data for 1985-1995) andEuropean Union (data for 1997-1999).

Exports. Exports of ultramarine pigments from Western Europe have fallen significantly. In 1999,Western Europe exported 297 metric tons, versus 7,891 metric tons in 1995.

Western European exports of ultramarine pigments are shown in the following table:

Western European Exports of Ultramarine Pigmentsa

(metric tons)

1985 6,7891986 7,2861987 8,2311988 8,2091989 8,455

1990 9,0001991 8,8001992 9,7001993 7,5011994 7,226

1995 7,891

1999 297 a. European Community 1989-1995, European Union 1997-1999.

After 1989, export data are incomplete, since exports from Franceare no longer reported.

SOURCE: NIMEXE, Analytical Tables of Foreign Trade:Products-Countries, Eurostat, Statistical Office of theEuropean Community (data for 1985-1995 andEuropean Union (data for 1999).

Iron Blue Pigments

Summary

The following table summarizes Western European supply/demand for iron blue pigments:



Western European Supply/Demand for Iron Blue Pigments(thousands of metric tons)

1996 1999

Capacity 9.5 9.5Production 6.3 3.2Imports 0.6 1.7Exports 2.2 0.9ApparentConsumption

4.7 4.0

SOURCES: (A) NIMEXE, Analytical Tables of Foreign

Trade: Products-Countries, Eurostat,Statistical Office of the EuropeanCommunity.

(B) CEH estimates.

Producing companies

In Western Europe only two producers of iron ferrocyanide (iron blue) pigments (PB–27) remain.Degussa AG, with plants in Germany and the United Kingdom (formerly Manox Ltd.), is the mainproducer. At its German plant the company has captive potassium ferrocyanide raw material available andin the United Kingdom plant, Degussa uses ammonium/sodium ferrocyanide as a raw material. Thecompany has recently started to produce granular iron blue pigments at its plant in the United Kingdom.Granular-type pigments are easily dispersible and, therefore, reduce the dispersion time required.

The Western European producers of iron blue pigments, along with their annual capacities, are listedbelow.

Western European Producers of Iron Blue Pigments



(thousands ofmetric tons

Germany

Degussa-Hüls AGWesseling 5.0

Spain

Intermedios Orgánicos, SA—INTORSAMontcada i Reixac 0.5

United Kingdom

Degussa-Hüls LimitedManox Division

Manchester 4.0

Total 9.5



SOURCES: (A) 1999-2000 Directory of Chemical Producers—Europe,

SRI International.

(B) CEH estimates.

Production

The production of iron blue pigments has declined continually in the past decade. Environmentalconcerns and reduced demand have forced companies to close their iron blue pigment plants. In 1998, thetwo remaining producers in Western Europe together produced some 3.2 thousand metric tons of ironblue pigments, down from 3.4 thousand metric tons in 1996.

Consumption

Western European consumption of iron blue pigments has eased slightly during the past decade. It isestimated that consumption in 1999 was approximately 4.0 thousand metric tons.

Western European Consumption of Iron Blue Pigments by End Use—1999



Printing Inks 2,600 65Fungicide Coloring 900 22Paints and Coatings 300 8Paper 120 3Chrome Green Manufacture 40 1Tinting, Food Colorants 40 1

Total 4,000 100% SOURCE: CEH estimates.

Printing inks. By far the most important use of iron blues is in the printing inks industry, for themanufacture of inexpensive, deep blue colors that have good lightfastness. Iron blues are extensively usedin combination with phthalocyanine blues and for toning with black printing inks. In these combinationsiron blues are used in volumes of 5-8% for gravure printing and 5-10% for black-ink book printing andoffset printing.

Fungicide coloring. Starting in the 1950s, iron blues were used for the coloring of organic fungicides(mainly dithiocarbamate types), used in the treatment of vineyards, particularly in the Mediterraneancountries. The use of this coloring pigment permits an easy method for tracking the distribution of thefungicide, which itself is colorless. Apart from this tracking function of the pigment, iron blues, becauseof their iron content, also have a biological effect on the grapes in that they increase the production ofchlorophyll in the leaves.

Paints and coatings. Iron blues are well suited for the manufacture of dark blue shades in coatings for theautomotive industry. In this application, however, iron blues are considered of minor importance becauseof the superior quality of organic pigments. Nevertheless, iron blue pigments find limited application inthe automotive repair paint segment.



Paper. Iron blue pigments are used to a small extent in the production of colored paper, as well as for themanufacture of one-time or multiuse carbon paper and copy paper. In these applications iron blues can beused as a single pigment or for toning carbon blacks. They have an advantage over other pigments in thatthey do not bleed through color bases or olein, particularly in preparations with high volumes of mineraloils.

Other. Iron blue pigments find use in a number of other smaller applications. Iron blue pigments are stillused in the production of chrome green, a combination pigment consisting of chrome yellow and ironblue. BASF and Cappelle both manufacture chrome green pigments on a campaign basis. Consumption ofiron blue pigments for this application is less than 50 metric tons. The commercial importance of chromegreen pigments continues to decline and it is expected that production of this particular pigment willeventually be terminated and hence the demand for iron blue pigment in this segment.

Price

The average Western European import value for iron blue pigments was 2.01 euros per kilogram in 1999,down from 2.44 euros per kilogram in 1998. Iron blue pigments are sold mainly in paper bags in 20-25kilogram quantities (Vossen Blue 705LS in 20-kilogram bags) or in large flexible containers (super sacks)of one metric ton.

Trade

Until 1995, imports of iron blue pigments were small and accounted for 0.6 thousand metric tons or lesseach year (less than 15% of supply). Up to a third of Western European production was typicallyexported. Beginning in 1997, imports increased significantly, primarily because of China whoseshipments to Western Europe increased ten-fold; while at the same time, Western European productionand exports declined. Western Europe is now import dependant, with imports accounting for over one-third of supply.

After China, leading countries of origin include Japan (Kyosei Chemical), India and the United States.



The table below lists import data by country of origin.

Western European Imports of Iron Blue Pigments by Country of Origin(metric tons)

China India JapanUnitedStates

FormerUSSR Other Total

1985 -- -- 176 42 50 4a 2721986 -- -- 232 38 61 -- 3311987 3b -- 181 15 68 -- 2671988 10 -- 229 26 -- 7a 2721989 -- -- 394 13 71 -- 478

1990 -- -- 352 10 10 -- 3721991 5 -- 541 5 1 -- 5521992 47 -- 479 6 17 -- 5491993 85 -- 248 7 --c 33 3731994 94 2 310 2 --c 135 543

1995 60 -- 407 10 --c 6 483

1997 613 -- 434 1 --c 369 1,4171998 608 -- 381 2 --c 476 1,4671999 854 -- 448 61 --c 288 1,651 a. Romania.

b. Via Macao.

c. Data included with OTHER.

SOURCES: (A) NIMEXE, Analytical Tables of Foreign Trade: Products-Countries, Eurostat,Statistical Office of the European Community.

(B) CEH estimates.

Western Europe’s exports of iron blue pigments fell from about 2.2 thousand metric tons in 1996 to about0.9 thousand metric tons in 1999.

The export business is still viable, but declining. The main export destination is the United States, towhich the two Western European producers together exported 486 metric tons in 1999, down from 1.5thousand metric tons in 1996. Exports are expected to continue to decline.

Cadmium Pigments

The following table summarizes Western European supply/demand for cadmium pigments in selectedyears:



Western European Supply/Demand for Cadmium Pigments(thousands of metric tons)

1988 1993 1996 1999

Capacity 4.15 3.1 3.1 3.1Production 2.9 2.2 2.4 1.1Imports 0.05 neg neg negExports 1.10 0.9 1.4 0.6Apparent Consumption 1.85 1.3 1.0 0.5 SOURCES: (A) NIMEXE, Analytical Tables of Foreign Trade: Products-

Countries, Eurostat, Statistical Office of the EuropeanCommunity.

(B) Jahresstattistik des Aussenhandels der Schweiz, Eid-genoessische Oberzolldirektion.

(C) CEH estimates.

Producing companies

As cadmium pigment consumption has declined, producers in Western Europe have adjusted withproduction termination and restructuring. In 1993, BASF terminated the manufacture of cadmiumpigments. The remaining cadmium pigment producers in Western Europe are Société Lanquedocienne deMicron-Couleurs, Johnson Matthey Ceramics & Materials (formerly Cookson Matthey), James M. Brownand General Quimica. It is expected that fewer Western European cadmium pigment producers willremain within the next few years as environmental regulations further limit the use of cadmium pigments,particularly in plastics.

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Western European Producers of Cadmium Pigments


Yellow Orange Red

Company and Plant Location (metric tons) PY-35 PY-35:1 PY-37 PY-37:1 PO-20 PO-20:1 PR-108 PR-108:1

France

Société Languedocienne de Micron-Couleurs SA—SLMC(owned 100% by Total, France)

Narbonne 1,200 X X X X X X

Germany

Cerdec AG, Keramische FarbenBonn na X X X X

Spain

General Química, S.A.a

(owned 100% by Repsol Química, S.A.)Comunión-Lantarón 150 X X X X X X X X

United Kingdom

Holliday Pigments LimitedStoke on Trent 600 X X X X X X

Johnson Matthey Ceramics & Materials Ltd.Materials Division

Pigments & DispersionsStoke on Trent 900 X X X

Total >2,850 a. General Química, S.A. is also producing the mercury-containing cadmium pigments PO-113 and PO-113:1.

SOURCES: (A) 1999/00 Directory of Chemical Producers—Europe, SRI International.

(B) CEH estimates.



Production

The production of cadmium pigments in Western Europe has declined considerably. It is estimated thatWestern European production in 1999 was approximately 1.1 thousand metric tons, down from 2.9thousand metric tons in 1988.

Consumption

In 1999, total Western European consumption is estimated to have been 0.5 thousand metric tons.Consumption in selected years is shown in the following table:

Western European Consumption of Cadmium Pigments(metric tons)

1988 1,850

1993 1,345

1996 1,015

1999 500 SOURCE: CEH estimates.

Because of environmental regulations and voluntary substitution by pigment consumers, consumption ofcadmium pigments has practically ceased in Denmark, Finland, Ireland, the Netherlands, Norway,Sweden and Switzerland.

The consumption pattern in Western Europe is similar to that in the United States and Japan, as shown inthe following pie chart and table:

Western European Consumption ofCadmium Pigments by Market Segment—1999

ABS30%

HDPE20%

Ceramic Materials,Paints andCostings

15%

PP15%

LDPE5%

PS10%

Other5%



Western European Consumption of Cadmium Pigmentsby Market Segment—1999


PlasticsABS 30HDPE 20PP 15PS 10LDPE 5Other 5

Ceramic Materials, Paints and Coatingsa 15

Total 100% a. Includes artist’s colors.


Although cadmium pigments as a group are among the most versatile pigments and have considerableadvantages over other pigments (e.g., high-temperature stability, wide range of brilliant colors, non-bleeding characteristics), environmental concern over the use of cadmium in products has led to a seriesof regulations limiting their use in Western Europe.

In a number of countries the use of cadmium compounds has virtually ceased. Faced with the problem ofdifferent approaches being taken throughout its member states, the European Union has adopted adirective on the use of cadmium pigments that harmonizes restrictions on their use within the EU memberstates. The directive does not ban the use of cadmium pigments, but restricts their use where they are notseen to be essential. The following summarizes the regulations laid out in the European Union Directive91/338 EEC:

● Beginning December 31, 1992, cadmium pigments may not be used to give color to polymers inwhich substitution is already demonstrated as feasible. These polymers include:

epoxy resinspolyurethanespolyvinyl chloride (PVC)cellulose acetatecellulose acetate butyratelow-density polyethylene (LDPE) (except as masterbatch)

● Beginning December 31, 1995, cadmium pigments may not be used to give color to polymers inwhich it is anticipated it may be possible to demonstrate satisfactory substitution by that date. Thepolymers added to the above list are the following:

melamine-formaldehyde resinsurea-formaldehyde resinspolyproplyenecross-linked polyethyleneunsaturated polyester resinsacrylonitrile–methyl methacrylatepolyethylene terephthalate



polybutylene terephthalatehigh-impact polystyrenetransparent/general-purpose polystyrene

Cadmium pigments may, however, be used to give color to all other polymers in which substitution iscurrently envisaged to be impracticable.

Austria, Sweden and Switzerland have also adopted similar restrictions on the use of cadmium pigmentsalthough the structure and detail of these regulations may differ in certain instances from the list of EUDirective 91/338. However, the EU Directive 91/338 takes effect only after being implemented inmember countries.

One use that is unlikely to be affected is glass and ceramics, as there appears to be no alternative for theuse of cadmium pigments. Also, the use for artist’s colors and materials will hardly be affected.

Taking these regulations and trends into account, Western European consumption of cadmium pigmentsis expected to drop to less than 100 metric tons by 2004.

It is estimated that the decreased use of cadmium pigments will be substituted for the most part by organicpigments, mainly as mixtures with rutile-structured complex inorganic pigments that augment the hidingpower. Some inorganic pigments such as bismuth vanadate and rare earth sulfide pigments areincreasingly used as substitutes.

Price

Cadmium pigments are relatively expensive specialty high-performance pigments. The price for cadmiumpigments depends mostly on the cadmium metal price, which is fixed in U.S. dollars at the London MetalExchange.

The following table gives gives average import values for cadmium pigments in Western Europe:

Western European Average Import Valuesfor Cadmium Pigments

(euros per kilogram)

1998 24.83

1999 19.25 SOURCE: Eurostat, Statistical Office of the

European Union.

Trade

Western Europe has been a net exporter of cadmium pigments for many years. The major exportingcountries are the United Kingdom and France.

Imports of cadmium pigments and preparations have never been very important. There are small importsfrom the United States (mainly from Ferro Corporation) and occasionally some material is also importedfrom Mexico, Canada, India and Ecuador. During 1992-1994 import volumes decreased in line with



decreasing demand in Western Europe. The temporary increase of imports in 1995 can be explained bythe fact that some consumers in Spain stockpiled cadmium pigments before they were totally phased out.

The following table shows Western European imports of cadmium pigments beginning in 1985:

EC Imports of Cadmium Pigmentsa

(metric tons)

1985 51986 201987 181988 231989 12

1990 141991 231992 601993 151994 9

1995 82

1997 151998 201999 11 a. European Community 1989-1995, European Union 1997-1999.

SOURCE: NIMEXE, Analytical Tables of Foreign Trade: Products-Countries, Eurostat, Statistical Office of the EuropeanUnion.

Although consumption of cadmium pigments in Western Europe is expected to decrease further, theexport business of the Western European producers still holds limited potential for a few years. The maindestination for cadmium pigments is the United States. After 1990, volumes exported to the United Stateshave, however, decreased steadily. Because of more stringent regulations, U.S. consumers have reducedthe use of cadmium pigments in plastic products. In 1999, cadmium pigment exports to the United Statestotaled 140 metric tons, down from 308 metric tons in 1990. The following table shows WesternEuropean exports of cadmium pigments:



Western European Exports of Cadmium Pigmentsa

(metric tons)

1980 1,6121981 1,4861982 1,0721983 1,3551984 1,135

1985 1,6601986 1,7971987 1,8791988 2,5471989 1,539

1990 1,5231991 1,3911992 1,4061993 1,2141994 1,365

1995 1,005

1997 7871998 6111999 583 a. European Community tariff code numbers are 3207.76 (until

1987) and 3206.3000 (after 1987).

SOURCE: NIMEXE, Analytical Tables of Foreign Trade:Products-Countries, Eurostat, Statistical Office of theEuropean Community.

Bismuth Vanadate Pigments

Producing companies

The following table shows the current producers of bismuth vanadate pigments in Western Europe:



Western European Producers of Bismuth VanadateYellow Pigments—2001

BASF AktiengesellschaftKöln, Germany

Bruchsaler Farbenfabrik GmbH & Co. KGBruchsal, Germany

Ciba Specialty Chemicals Maastricht B.V.Maastricht, Netherlands

Dr. Hans Heubach GmbH & Co. KGLangelsheim, Germany

Gebroeder Cappelle nvMenen, Belgium


Consumption

Bismuth vanadate pigments are a relatively new group of pigments introduced primarily as an alternativeto lead chromate pigments. It is estimated that total Western European consumption of bismuth vanadatepigments in 1999 was approximately 300 metric tons. This figure includes the bismuth vanadate/molybdate mixed pigments. Applications are similar to those of lead chromates, in paints (alkyd,nitrocellulose and stoving paints, as well as in water-based paints) and plastics. It can be expected thatconsumption of these high-saturation, high color strength alternative pigments will continue to grow.Volume increases will start from low levels and be rather modest due to relatively high prices exceedingDM50 per kilogram.

Rare Earth Sulfide Pigments

Rhône-Poulenc, a leading producer of rare earth compounds, has recently commercialized a new group ofpigments based on rare earth sulfides. Six pigments, currently based on cerium sulfide, have many similarproperties to cadmium and lead chromate pigments:

PO-78 Orange Neolor Orange Light SPR-265 Orange pigment Neolor Orange SPR-265 Red pigment Neolor Red SPR-275 Red Neolor Burgundy Light SPR-275 Red Neolor Burgundy Sna Yellow Neolor Yellow S

The above-mentioned pigments are aimed primarily at replacing cadmium-based pigments in engineeringpolymers, such as nylons. Rare earth sulfide pigments are likely to compete to some extent with complexinorganic pigments.



Producing companies

Rhône-Poulenc is the sole producer of rare earth sulfide pigments. The different production steps toproduce rare earth sulfide pigments are located at three sites in France. At La Rochelle rare earths areseparated and sent to Les Roches-Roussilon where sulfurization is carried out; finally, the product isprocessed to its pigment form at Clamecy. The processing plant, which came on stream in mid-1997, hasan annual nameplate capacity of 500 metric tons.

Production

Rhône-Poulenc is the sole manufacturer and full nameplate capacity may not have been reached.

Consumption

Rare earth sulfide pigments are still in the early stage of their life cycle. In Western Europe, it is likelythat less than 200 metric tons of rare earth sulfide pigments were consumed in 1999. The mainapplications are likely to be in engineering plastics, where the high-temperature stability of rare earthsulfide pigments will meet the expectations of former cadmium and lead chromate users and where therelatively high prices can be better absorbed. Also it is envisaged that rare earth sulfide pigments couldsubstitute for certain solvent dyes in outdoor polyurethane products.

Price

As of March 2001, rare earth sulfide pigments were sold at about $40 per kilogram, down from about $50per kilogram in 1997. Market prices will likely continue to decrease with increasing market penetration.

EASTERN EUROPE

Producing Companies

The following tables list Eastern European producers of color inorganic pigments:

Central and Eastern European Producers of Iron Oxide Pigments

Annual Processing Capacity as of 2001(thousands of metric tons)


Black(PBk-11)

Brown(PBn-7)

Red(PR-102)

Yellow(PY-43)

Un-specified Remarks

Poland

Bemal, ZakladyProdukciyno-Handlowy

Borowno -- -- X -- --

Ferro-Pigment-ProdukcijaFarb i Pigmentow

Kozienice -- -- 0.05 -- --



Central and Eastern European Producers of Iron Oxide Pigments (continued)



Black(PBk-11)

Brown(PBn-7)

Red(PR-102)

Yellow(PY-43)


Poland (continued)

Kieleckie Zaklady Farb iLakierow “Polifarb”

Skarzysko-Kamienna -- -- -- -- 0.5

Lubelskie PrzedsiebiorslwoPrzemyslowo-Handlowe“Odczynniki Chemiczne”

Lublin X X

Minochem Wytwórnia Farb i Lakierów

Grójec X X X

Polifarb BlyzinBlyzin -- -- X -- --

Zaklady Chemiczne“Organika-Zachem”

Bydgoszcz X -- X 3.0 --

Zaklady Chemiczne“Permedia” S.A.

Lublin X X X X -- Total capacity is about 300 metrictons per year.

Russia

NIPROINS—Nauchno-Issledovatelskogoi Proektnogo

Chelyabinsk 0.3 -- -- -- -- Also manufactures micronizediron oxide pigments (annualcapacity is 200 metric tons).

Yaroslavskoe POLakokraska

Yaroslavlskaya -- -- -- 2.3 X Also manufactures special ironoxide pigments.

Ukraine

Krimskoe PO “Titan”Iskhodnoe -- -- 30.0 -- -- Synthetic iron oxide pigments

from titanium dioxide manu-facture.

Krivorozhskiy SurikoviyKrivoy Rog -- -- X -- -- Natural iron oxide pigments.

Largest production facility in theCIS.



Central and Eastern European Producers of Iron Oxide Pigments (continued)



Black(PBk-11)

Brown(PBn-7)

Red(PR-102)

Yellow(PY-43)


Ukraine (continued)

Sumskie PO “Chimprom”Sumi -- -- 15.0 2.5 -- Synthetic iron oxide pigments

from titanium dioxide manufac-ture.

Uzbekistan

TashkentskiyLakokrasochniy Zavod

Tashkent -- -- -- 2.5 -- SOURCE: CEH estimates.

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Central and Eastern European Producers of Chrome Pigments


Lead ChromatesChromium Oxide Green Hydrated

Chrome Molybdate Zinc

Company and Plant LocationYellow

(PY-34)Orange

(PR-104)Anhydrous

(PG-17)Hydrated(PG-18)

Chromate(PY-36) Unspecified Remarks

Hungary

Holland Colours Hungária KftSzolnok 3.0 1.0 0.2 0.1 1.0 -- Also produces zinc chromate and

zinc phosphate as well as pigmentpastes.

Kazakhstan

Zavod Chromivikh SoedineniyAktyubinsk -- 2.5 -- -- -- -- Zinc-molybdate chrome yellow.

Poland

Zaklady Chemiczne “Alwernia” S.A.Alwernia X

Zaklady Chemiczne “Permedia” S.A.Lublin 0.3 -- 0.3 X -- --

Russia

Novotroitskiy Zavod KhromovikhSoedineniy

Novotroitsk 11.0 -- -- -- 5.2 -- Also manufactures chromiumphosphate in a 1.9 thousand metricton-per-year plant.

Yaroslavskoe POLakokraska

Yaroslavlskaya 8.0 -- -- -- -- -- SOURCE: CEH estimates.



Central and Eastern European Producers of Iron Blue Pigments



(thousands ofmetric tons)

Poland

Zaklady Chemiczne “OrganikaDolnoslaskie”

Zarow 0.25

Russia

Chelyabinskiy Lakokrasochiny ZavodChelyabinsk 2.8


Central and Eastern European Producers of Ultramarine Pigments



(thousands ofmetric tons) Remarks

Poland

Polifarb Kalisz SAKalisz 0.5 Green, pink, red and violet pigments.

Zaklady Tworzyw i FarbZloty Stok na New plant under construction. Capacity

is not known.

Russia

Krasnoyarskoe PO “Khimprom”Krasnoyarsk 0.25




Central and Eastern European Producers of Cadmium Pigments



(thousands of metric tons) Pigments Produced

Poland

Zaklady Chemiczne “Permedia” S.A.Lublin 0.2 Orange, red and yellow.

Romania

Pigmenti SAOradea neg

Russia

na <0.5 Small production of cadmium-basedpigments.


Central and Eastern European Producers of Cobalt Pigments



(thousands of metric tons) Pigments Produced

Poland

Zaklady Chemiczne “Permedia” S.A.Lublin 0.1

Russia

na <0.2 Small production of cobalt-basedpigments.


A general description of the major pigment producers in Central and Eastern Europe is presented belowby country. Precheza a.s. is the sole manufacturer of inorganic pigments in the Czech Republic. The mainproduct is red iron oxide, but limited volumes of brown iron oxide as well as pearlescent pigments arealso manufactured.

In Hungary, Holland Colours Hungária Kft, owned 90% by Holland Colours NV, the Netherlands, hasadvanced to become one of the leading inorganic pigments producers in Central Europe. About 85% oftotal output is for inorganic pigments (chrome yellows, molybdate orange and zinc phosphate) and theremaining 15% are pigment preparations and pigment pastes. All products are sold under the trade nameHolcobatch . The company is a large exporter to Central and Western European countries but also sells



to other regions. There are substantial investment programs aimed at a substantial capacity increase andexpansion of product range.

Zavod Chromivikh Soedineniy is the only manufacturer of inorganic pigments (molybdate orangepigment) in Kazakhstan. The output is sold primarily on the domestic market. The booming crude oilindustry may lead to increased demand for anticorrosion paints and coatings also requiring inorganicpigments.

Zaklady Chemiczne “Permedia” S.A. (also known as Permedia Chemical Works) is Poland’s maininorganic pigment producer, with a domestic market share of approximately 40%. The company is 100%owned by local municipalities. Apart from pigments, Permedia also produces nickel oxide, nickel sulfateheptahydrate and nickel copper oxide.

In Romania, Pigmenti SA at Oradea is the leading pigment manufacturer. The product range includeschromate and chromium pigments, anticorrosion pigments (e.g., zinc phosphate, barium chromate), aswell as iron oxide pigments. The company’s main trading partner is Policolor SA at Bucharest, to whichthe company sells about 65% of its output. Other key accounts of Pigmenti are Sinteza Color SA atOradea and Azur SA at Timisoara.

The severe economic downturn in Russia has forced a number of pigment producers to shut down theiroperations altogether. The two most important producers of inorganic pigments are Novotroitskiy ZavodKhromovikh Soedineniy at Novotroitsk, manufacturing lead chromates, zinc chromate and chromiumphosphate and Yaroslavskoe PO at Yaroslavsk manufacturing yellow chrome and iron oxide pigments.Apart from these companies there are about five smaller manufacturers of color inorganic pigments.Although the severe shortage of inorganic pigments in Russia would suggest many businessopportunities, there are significant barriers for newcomers in this country. Possibly the most criticalbarrier is the difficulty in obtaining payment for delivered goods because of the desolate financialsituation of most of the pigment consumers. Nevertheless, it is likely that within the next decade a numberof companies will attempt to enter (or reenter) the inorganic pigments market in Russia.

Two of the region’s largest iron oxide pigments producers are located in the Ukraine, Sumskie PO“Chimprom” and Krimskoe PO “Titan,” manufacturing about 47% of the region’s total production.

In Uzbekistan, Tashkentskiy Lakokrasochniy Zavod is the one known producer of inorganic pigments(iron oxide yellow).

Production

Estimated production of inorganic color pigments in 1999 is presented in the following table:



Central and Eastern European Production of Color Inorganic Pigments—1999(thousands of metric tons)

Iron OxidePigments

ChromePigments Iron Blue

UltramarineBlue

CadmiumPigments

CobaltPigments

Czech Republic 8.5 -- -- -- -- --Hungary -- 2.5 -- -- -- --Kazakhstan -- 1.5 -- -- --Poland 13.0 0.25 0.15 0.3 0.1 0.1Romania <5.5 0.25 -- -- 0.1 --Russia >2.0 24.0 2.0 0.2 0.3 0.1Ukraine 27.0 -- -- -- -- --Uzbekistan 1.0 -- -- -- --

Total 57.0 28.5 2.15 0.5 0.5 0.2 SOURCE: CEH estimates.

Production of inorganic pigments has declined significantly over the last decade and is believed to havebottomed out in 1996. The region has a severe shortage of at least 30 thousand metric tons of iron oxidepigments and a very sizable volume of other inorganic pigments. The main reason that pigmentproduction is growing so slowly is because of the continued financial difficulties, particularly in EasternEuropean countries. In the medium term, however, it is anticipated that production will begin to rebound.

Consumption

The following table gives an estimate for inorganic pigments consumption in Central and Eastern Europein 1999:

Central and Eastern European Consumption of Color Inorganic Pigments—1999


Iron Oxide 30.0Chromates 2.5Ultramarines 1.5Chromium Oxide 1.0Complex Inorganic Pigments 0.4Cadmium Pigments 0.4Iron Blues 0.4


Of the 36 thousand metric tons of inorganic color pigments consumed in the region, about 80% isconsumed by paints and coatings with the remaining 20% consumed in other market segments, such asplastics and printing inks.



JAPAN

Producing Companies

The major Japanese producers of inorganic color pigments are listed in the following table:

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Major Japanese Producers of Inorganic Color Pigments—2000

Company

Iron Oxide(Hematite)(Red 101)

Iron Oxide(Magnetite)(Black 11)

Iron Oxide(Goethite)

(Yellow 42)

ChromeYellow

(Yellow 34)

MolybdateChromeOrange

(Red 104)

ChromiumOxide

(Green 17)

ZincChromate/

Zinc Yellow(Unti-

corrosivepigment)

Iron Blue(Blue 27)

Ultra-marine Blue

(Blue 29) Other

Daiichi Kasei Kogyo Co.,Ltd.

Hyogo Prefecture XShiga Prefecture X

Ferro Enamels (Japan) Ltd.Osaka Prefecture Metals

compoundsIshihara Sangyo Kaisya,Ltd.

Mie Prefecture TitaniumYellow

Izumi Kasei Kogyo K.K.Osaka Prefecture X X

Kikuchi Color &Chemicals Corp.

Tokyo Prefecture X X X

Kyosei Chemical Co., Ltd.Niigata Prefecture X

Merck Japan Ltd.Fukushima Prefecture Pearlescent

pigmentsMorishita Bengara KogyoCo., Ltd.

Mie Prefecture X X X

Nippon ChemicalIndustrial Co., Ltd.

Yamaguchi Prefecture X

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Major Japanese Producers of Inorganic Color Pigments—2000 (continued)

Company




(Yellow 42)

ChromeYellow

(Yellow 34)


(Red 104)

ChromiumOxide

(Green 17)

ZincChromate/

Zinc Yellow(Unti-

corrosivepigment)

Iron Blue(Blue 27)

Ultra-marine Blue

(Blue 29) Other

Nippon Denko Co., Ltd.Tokushima Prefecture X

Titan Kogyo K.K.Yamaguchi Prefecture X

Toda Kogyo Corp.Okayama/Yamaguchi Prefecture

X X X

Toho Ganryo Kogyo Co.,Ltd.

Tokyo Prefecture X X

Number of OperatingPlants

23 2 2 2 1 1 2

Annual Capacity(thousands of metric tons)

227.6a 6.8 1.8 7.2 1.0 5.0 1.8

a. Includes plants and capacity for magnetic iron oxide/ferrites production.

SOURCES: CEH estimates.



Iron oxide pigments

Although there are a great number of iron oxide producers in Japan, most of the major producersmanufacture magnetic iron oxide/ferrites only. Unlike in the United States and Europe, there are noproducers of natural iron oxide pigments. Toda Kogyo is the leading supplier of iron oxide for bothpigments and magnetic media/ferrite applications. Titan Kogyo and Bayer (import) are the leadingsuppliers after Toda Kogyo of iron oxides to the pigment sector. Titan Kogyo produces iron oxide forboth pigments and magnetic media/ferrites and the company has the strength of supplying especially PY-42 (yellow iron oxide) to the pigment sector. Nippon Bengara Kogyo ceased production and is nowsupplied with iron oxide from Toda Kogyo. Toho Ganryo Kogyo produces heat resistant high-qualityyellow and red iron oxide pigments by using purchased iron oxide. Bayer (Japan) imports iron oxidepigments from China, Germany and the United States.

Chrome pigments

Kikuchi Color is the world’s leading producer of chrome yellow and also the leading supplier ofmolybdate chrome orange in Japan. The company has a 100%-owned subsidiary, Dominion Colours(Ontario, Canada), and exports some chrome color pigments back to other Asian countries. In 2000,Kikuchi Color built a chrome color pigments plant, Chongqing Jiangnan Kikuchi, in China with 3.5thousand metric tons of capacity, which is a joint venture with local company. As other producers(Dainichiseika Color & Chemicals Mfg, Nippon Inorganic Colour & Chemical Company and TohoGanryo Kogyo) ceased chrome color pigments production in recent years, Kikuchi Color is the onlycompany to expand chrome color pigment capacity worldwide. Nippon Inorganic Colour & ChemicalCompany withdrew from the pigment business itself by ceasing chrome yellow, molybdate chromeorange and zinc chromate production in 2000, and the company will concentrate on the industrialchemical business. With regard to chromium oxide, which is used as green pigment, Nippon ChemicalIndustrial and Nippon Denko are the only two producing companies in Japan, and hold similar marketshare.

Other color inorganic pigments

Kyosei Chemical, a joint venture between Dainichiseika and Kuraray, is the sole supplier of iron blue inJapan. Its crude iron blue production is located in Kuraray’s Nakajo plant site in Niigata prefecture, usingKuraray’s captive hydrogen cyanide coproduced at methyl methacrylate production (by the acetonecyanohydrin process), and iron blue sales are handled by Dainichiseika. Daiichi Kasei Kogyo is the soleproducer of ultramarine blue. Daiichi produces ultramarine pigments at two plant sites, one in HyogoPrefecture and the other in Shiga Prefecture. Beside ultramarine blue, the company produces ultramarinepink and ultramarine violet.

Ferro Enamels (Japan) Ltd. produces a variety of complex inorganic pigments such as PB-28, 36, 72;PBn-24, 29, 33, 118; PG-19, 26, 50; and PY-53. Ishihara Sangyo, one of the leading producers oftitanium oxide, also produces titanium yellows, categorized as complex inorganic pigments.

Merck Japan Ltd. produces mica-based pearl pigments coated with titanium dioxide, black iron oxide oraluminium oxide, at its Onahama plant site in Iwaki City, Fukushima Prefecture. Reportedly, its capacitywas expanded 25% in May, 1999. The flake size of pearl is roughly 20 micrometers in diameter with a 0.4micrometer thickness and coated with titanium dioxide particles of 0.3 micrometer diameter. Dependingon the surface coating type and its thickness, various color pearlescent pigments can be produced. These



pigments have been consumed mainly in automotive basecoat applications, adding excellent lusterappearance.

Bismuth vanadate pigments are finding increasing interest in Japan as a substitute to cadmium andchromate pigments. These pigments are produced by Dainichiseika.

Production

Historical production data for inorganic pigments are provided in the following table:

Japanese Production of Inorganic Color Pigments(thousands of metric tons)

IronOxide

ChromeYellowa

ChromiumOxideb Iron Blue

MolybdateChrome Orange

UltramarineBlue

1975 79.0 11.5 1.34 2.3 2.39 0.96

1980 127.9 10.7 4.20 3.4 2.91 1.021981 135.8 10.1 3.63 4.0 2.77 1.241982 127.8 9.7 3.12 4.0 2.74 1.281983 138.9 10.4 5.16 5.0 2.98 1.421984 169.5 9.9 5.20 5.0 2.86 1.52

1985 164.3 8.5 5.17 4.5 2.57 1.431986 173.3 7.9 3.84 3.4 2.24 1.471987 190.8 7.9 4.93 3.4 2.38 1.441988 212.7 8.2 6.18 3.7 2.47 1.431989 225.6 8.51 7.06 3.36 2.45 1.58

1990 219.2 8.08 7.26 3.43 2.35 1.831991 227.0 7.93 6.71 3.57 2.51 1.651992 211.7 8.11 6.50 3.86 2.33 1.581993 195.2 7.05 6.20 3.97 1.96 1.551994 207.4 7.07 6.20 2.83 1.97 1.60

1995 222.6 6.26 5.10 3.28 1.88 1.491996 238.9 5.93 6.13 3.50 2.00 1.621997 250.4 6.41 5.39 3.24 1.94 1.521998 216.4 5.34 5.78 2.48 1.98 1.291999 225.4 3.99 5.56 2.35 1.42 1.33

2000 232.0 3.60 5.44 2.35 1.24 1.35 a. Includes PO-21.

b. Includes PG-15.

SOURCES: (A) CEH estimates (data for 2000).

(B) Japan Inorganic Chemicals Association (all other data).

Among the iron oxide produced domestically, pigment use was approximately 27 thousand metric tons,about 12% of total iron oxide production in 1999. The production of chrome pigments is an importantapplication for both sodium bichromate and chromic acid. However, production in Japan is expected todecrease at an average annual rate of 8-9% over the next five years, mainly because of environmental



issues and their replacement by organic pigments. About 100-120 metric tons of cadmium pigments(yellow, orange, red) were produced in 1999, but most of these (89 metric tons) are for export demand.

Consumption

The following table presents production of the major inorganic color pigments:

Japanese Consumption for Inorganic Color Pigments(thousands of metric tons, gross weight)

IronOxidea

ChromeYellow


ZincChromate/

ZincYellow

IronBlue

Ultra-marineBlue

ZirconiumOxideb

ChromeOxideb

Cad-minium

PigmentsBismuthVanadate Total

1975 na 9.0 2.2 2.0 na na na na na -- na

1980 na 9.3 2.4 1.8 na na na na na -- na

1985 na 7.5 2.1 1.3 na na na na na -- na

1988 39.7 7.4 2.0 1.1 1.6 1.2 na na na -- 54.11989 44.2 7.4 2.0 1.0 1.6 1.3 na 4.1 na -- 62.7

1990 45.8 7.6 2.1 1.2 1.6 1.4 na 4.7 na -- 65.41991 46.4 7.0 2.1 1.2 1.3 1.3 na 4.8 na -- 65.31992 45.7 6.8 1.9 1.2 1.2 1.3 na 4.5 na -- 63.91993 48.4 6.0 1.6 1.0 1.0 1.2 na 5.7 na -- 66.01994 53.4 6.0 1.7 0.9 1.0 1.3 na 3.3 0.2 neg 68.5

1995 51.9 6.2 1.5 0.6 0.9 1.3 na 3.5 0.2 neg 66.71996 50.7 5.4 1.6 0.7 0.9 1.5 0.4 3.8 0.1 neg 65.71997 53.2 5.1 1.4 0.6 0.8 1.6 0.4 4.0 0.1 neg 67.91998 47.8 4.2 1.2 0.5 0.6 1.7 0.4 2.9 neg neg 59.91999 48.8 3.7 1.0 0.3 0.5 1.8 0.4 2.6 neg neg 59.5

2000 49.0 3.3 0.8 0.3 0.4 1.8 0.4 2.4 neg neg 58.7

2005 50.0 2.0 0.5 0.2 0.3 1.8 0.4 2.0 neg 0.1 57.5

Average Annual Growth Rate(percent)

2000-2005 0.4% –9.5% –9.0% –7.8% –5.6% 0.0% 0.0% –3.6% na 20.0% –0.4% a. The numbers for iron oxide consumption are for pigments only and excludes ferrite applications.

b. Excludes consumption other than pigment use.

SOURCE: CEH estimate based on data from the Japan Inorganic Chemicals Association and import data.

Among the different types of pigment chemicals, the consumption of iron oxide and ultramarine blue hasbeen fairly stable with some fluctuation. Chrome-type pigments and iron blue have been decreasing.



Consumption of bismuth vanadate has been quantitively small but growth is expected over the next fiveyears from replacing chrome yellow in traffic paint applications.

The following table shows the 1996 and 1999 consumption breakdown for selected inorganic colorpigments in Japan:

Japanese Consumption of Inorganic Color Pigments Use by End Use (Including Non-Pigment Uses)(thousands of metric tons, gross weight)

Paints Plastics InkOther

(Pigment)Non-Pigment

Use Total

1996 1999 1996 1999 1996 1999 1996 1999 1996 1999 1996 1999

Iron Oxide 12.9 11.2 1.7 1.6 1.4 1.4 34.8a 34.6a 120.7b 114.2b 171.5 163.0Chrome Yellow 4.6 2.9 0.8 0.5 -- -- 0.1 0.3 -- -- 5.4 3.7Chromium Oxide 1.4 1.4 2.4 1.2 neg neg neg neg 2.0 1.8 5.9 4.6Molybdate Chrome Orange 1.4 0.7 0.2 0.1 -- -- neg 0.1 -- -- 1.6 1.0Iron Blue neg neg neg neg 0.8 0.5 neg neg -- -- 0.8 0.5Ultramarine Blue 0.2 0.2 0.3 0.3 0.2 0.2 0.6 0.6 -- -- 1.5 1.8Zinc Chromate/ Zinc Yellow 0.7 0.3 -- -- -- -- -- -- -- -- 0.7 0.3

Total 21.1 16.8 5.4 3.8 2.4 2.1 35.4 35.6 122.7 116.0 187.4 174.9 a. Includes construction materials, ceramics/porcelain, pavement and paper application.

b. Quantity used for ferrite/magnetic applications.


The major pigment application of iron oxide is in coloring concrete. Color pigments are used in paintapplications for industrial coatings, but poor color-quality pigments of iron oxide are used mainly inanticorrosive coatings. Statistics for “Ink” seems to include coatings on metal (on can coatings orprecoated metal [PCM]) and magnetic ink in uses such as credit card and ticket applications.

Iron blue is used mainly in newspaper ink for toning of carbon black, but as this application is costconscious, the use of iron blue has been decreasing. Iron blue is also used as a color component in blue-type pressure-sensitive ink, but some big users have switched from blue ink to black ink in thisapplication. Also, other applications replaced iron blue with organic pigments mixtures for better alkalineresistance, causing a further decrease in iron blue consumption. Meanwhile, the consumption ofultramarine blue has been stable in a wide variety of applications, including inks, coatings, plastics andothers.

Chrome yellow and molybdate chrome orange, which used to be consumed in screen inks, have not beenused in recognizable quantities for ink applications in Japan in recent years because of toxicity concerns.These chrome-containing pigments has been used in industrial paint applications, such as in industrialautomobiles (such as forklifts), topcoats on taxis, heavy-duty paint on large metal structures and trafficpaint. The decrease of these pigments in paint applications results from two reasons: (a) the decrease ofalkyd and oil paint production itself, and (b) paint companies do not formulate these pigments in newcoating formulations anymore because of environmental concerns, so that these chrome pigments onlycontinue to use old, existing formulations. Even though “yellow” is an important color for traffic paint,yellow pigment itself has lately been avoided in new traffic paints, instead being replaced with whitetraffic paint with double lines. Japanese consumption of chrome yellow is shown in the following table:



Japanese Consumption of Chrome Yellow(thousands of metric tons, gross weight)

Paints Plastics Printing Ink Othera Totalb

1975 7.8 0.9 neg 0.3 9

1985 6.3 1.1 neg 0.1 7.51988 6.2 1.2 neg neg 7.41989 6.3 1.1 neg neg 7.3

1990 6.4 1.1 -- neg 7.51991 6.0 1.0 -- neg 71992 5.8 1.0 -- neg 6.81993 5.1 0.9 -- 0.1 6.01994 5.1 0.8 -- 0.1 6.0

1995 4.6 0.8 -- 0.1 5.41996 4.8 0.6 -- 0.1 5.41997 4.4 0.5 -- 0.1 5.01998 3.7 0.5 -- 0.1 4.11999 3.0 0.5 -- 0.3 3.6

2000 2.8 0.4 -- 0.1 3.3 a. Includes drawing paints and crayons.


SOURCE: CEH estimates based on import data and data from the JapanInorganic Association.

Japanese consumption of molybdate orange is estimated to have been as follows:

Japanese Consumption of Molybdate Chrome Orange(thousands of metric tons, gross weight)

Paints Plastics Printing Ink Othera Totalb

1975 1.8 0.3 neg 0.1 2.2

1980 2.0 0.3 neg 0.1 2.4

1985 1.8 0.3 neg neg 2.1

1988 1.7 0.3 neg neg 2.01989 1.7 0.3 neg neg 2.0

1990 1.8 0.3 -- neg 2.11991 1.9 0.2 -- neg 2.11992 1.6 0.2 -- neg 1.91993 1.4 0.2 -- neg 1.61994 1.5 0.2 -- 0.1 1.7

1995 1.4 0.1 -- neg 1.51996 1.4 0.1 -- neg 1.61997 1.3 0.1 -- neg 1.41998 1.0 0.1 -- neg 1.21999 0.7 0.1 -- 0.1 1.0

2000 0.6 0.1 -- neg 0.7



a. Includes drawing paints and crayons.


SOURCE: CEH estimates based on import data and data from the JapanInorganic Chemicals Association.

Zinc chromate pigments, also called zinc yellow, are used primarily in anticorrosive primers. Chromeoxide is excellent in acid, alkali and heat resistance and is used in coatings, porcelain enameled productsand special inks.

Domestic consumption of cadmium pigments was only around 20 metric tons, which has been decreasingbecause of environmental concerns. Applications are limited to use in porcelain enameled products,where it is difficult to find a substitution for cadmium pigments.

Zirconium oxide is white pigment used for ceramics, but also consumed to produce spinel color pigment(complex).

Price

Price information on inorganic pigments is presented in the following tables:

Japanese Unit Values for Selected Inorganic Color Pigments

Yen per KilogramExchange Rate

Iron Oxidea Chrome Yellow (yen per dollar)

1981 217 554 221

1985 233 484 239

1990 201 470 1451991 196 491 1351992 208 499 1271993 207 503 1111994 197 486 102

1995 180 491 941996 211 488 108.81997 202 486 121.01998 204 482 130.91999 200 485 113.7 a. Average unit value including ferrites and pigments.

SOURCES: (A) Yearbook of Chemical Industries Statistics, Ministry ofInternational Trade and Industry (data for YEN PERKILOGRAM).

(B) International Financial Statistics, International MonetaryFund (data for EXCHANGE RATE).



Japanese List Prices for Selected Inorganic Color Pigments(yen per kilogram)

IronOxide

ChromeYellow

MolybdateChromeOrange Iron Blue

UltramarineBlue

ZincChromate

Exchange Rate(yen per dollar)

1996 200-460 530-570 700-1,000 650-750 860-980 550-680 109

1999 200-460 500-550 700-1,000 650-750 860-980 550-680 113.7 SOURCES: (A) CEH estimates.

(B) International Financial Statistics, International Monetary Fund (data for EXCHANGE RATE).

Market prices for inorganic pigments vary within a broader range, by grade and the amount purchased;however, much cheaper prices are available for large-volume consumers. The market price of iron oxidewith poor color quality for anticorrosive coating use is much cheaper than the price listed.

Trade

Import and export data for inorganic pigments are provided in the following table:

Japanese Trade in Inorganic Color Pigmentsa


Iron Oxideb Chrome YellowMolybdate Chrome

Orangec

Imports Exports Imports Exports Imports Exports

1981 5.34 15.23 -- 1.22 -- 0.46

1985 10.83 14.48 -- 0.81 -- 0.44

1990 13.49 32.64 0.05 1.34 na 0.321991 14.61 38.82 0.04 1.39 na 0.291992 13.84 40.10 0.01 1.75 na 0.351993 21.56 36.57 0.03 1.35 na 0.321994 26.26 39.65 0.01 1.29 na 0.04

1995 26.10 51.35 0.04 1.18 na 0.231996 23.19 50.39 0.04 0.96 na 0.221997 26.25 52.64 0.06 1.31 na 0.201998 23.34 45.79 0.10 1.62 na 0.611999 23.34 35.77 0.11 1.04 na 0.74



Japanese Trade in Inorganic Color Pigmentsa (continued)(thousands of metric tons)

Chromium Oxide Iron Blue Ultramarine Blue

Imports Exports Imports Exports Imports Exports

1981 -- 0.60 neg 2.00 neg 0.34

1985 -- 1.17 0.05 2.76 0.08 0.50

1990 2.65 5.29 neg 1.67 0.18 0.621991 3.02 4.70 neg 2.19 0.18 0.561992 2.52 5.08 neg 2.50 0.17 0.531993 3.88 5.48 neg 2.90 0.18 0.471994 1.66 3.54 neg 1.84 0.15 0.50

1995 2.20 2.17 neg 2.29 0.21 0.371996 2.39 1.85 0.02 2.63 0.24 0.351997 2.75 2.20 0 2.52 0.39 0.321998 1.48 1.74 0 2.01 0.39 0.251999 1.24 2.66 neg 1.80 0.45 0.28 a. Since 1989, data have been reported under the following harmonized trade code numbers:

Imports Exports

Iron oxide 2821.10-010 2821.10-000Chrome yellow 2841.20-000 2841.20-000

3206.20-100Molobydate chrome orange na naChromium oxide 2819.10-00 2819.10-000Iron blue 3206.43-000 3206.43-000Ultramarine blue 3206.41-010 3206-41-000

b. Data represent all iron oxides including ferrites and pigments.

SOURCE: Japan Exports & Imports, Japan Tariff Association.

In 1999, Japan imported about 23.3 thousand metric tons of iron oxide mainly from China (45.4%), theUnited States (10.4%) and Germany (19.7%), while the country exported about 35.8 thousand metric tonsmainly to the Republic of Korea (31.9%) and the United States (16.6%). Imports are likely to be primarilypigments by Bayer, whereas most of exports are ferrites/magnetic iron oxide.

With regard to chrome yellow, Japan exported 1 thousand metric tons to Asian countries and Canada,while imports are very small.

Japan exported 1.8 thousand metric tons of iron blue, which is about 76% of its production in 1999,mainly to the United States (31.2%) and Italy (23.6%). Japan exported 86 metric tons of cadmiumpigments in 1999, mainly to Taiwan and the Republic of Korea.



OTHER ASIAN COUNTRIES

Producing Companies

There are a number of producers of inorganic color pigments in Asia:

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Company




(Yellow 42)

ChromeYellow

(Yellow 34)


(Red 104)

ChromiumOxide

(Green 17)

ZincChromate

(anti-corrosivepigment)

Iron Blue(Blue 27)

Ultra-marine Blue

(Blue 29) Other

Korea, Republic of

Sambo Fine ChemicalsMfg. Co., Ltd.

X X

Ukseung ChemicalCompany Ltd.

X X X

Taiwan

China Steel Corp. X

Ching Hua Chemical Co.,Ltd.

X X

Fu Tai Chemical IndustryCo., Ltd.

X

Goodwill Chemical Corp. Pearlescentpigments

New Hsin Jung EnterpriseCo., Ltd.

X

Poo Nan ChemicalIndustrial Co., Ltd.

X X

Sheng Yu Steel Co., Ltd. X

Taiwan Colors &Chemicals Co., Ltd.

X X

Taiwan Itai EnterprisesCo., Ltd.

X X

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Company




(Yellow 42)

ChromeYellow

(Yellow 34)


(Red 104)

ChromiumOxide

(Green 17)

ZincChromate

(anti-corrosivepigment)

Iron Blue(Blue 27)

Ultra-marine Blue

(Blue 29) Other

Taiwan (continued)

Yen Kwang Color Co.,Ltd. X X

Yieh Loong EnterpriseCo., Ltd.

X

Yih Chen ChemicalIndustry Co., Ltd.

X X X

India

Number of Companies 15 6 12 4 1 4 SOURCE: CEH estimates based on the Directory of Chemical Producers, SRI Consulting.



The table below is the estimation of salient statistics in selected Asian countries (imports/exports arelisted in the table at each country section).

Salient Statistics of Inorganic Color Pigments in Selected Asian Countries

China

Production

ChromiumYellow

ZincChrome

UltramarineBlue

IronOxidea Molybdate

RedLead Total

ApparentConsumption

1997 10.1 0.1 1.1 95.9 0.4 26.4 133.9 27.61998 10.3 3.8 0.8 103.0 0.0 18.6 136.3 30.21999 na na na na na na 140 40.5

Republic of Korea

Production

Cromium ZincUltramarine

Blue TotalApparent

Consumption

1997 4.5 0.9 0.1 5.4 19.21998 4.6 0.1 0.1 4.7 25.91999 5.1 0.0 0.1 5.3 25.2

Taiwan

Production

ChromeYellow

ZincChrome Molybdenum

IronOxide Other Total

ApparentConsumption

1997 na na na na na na na1998 1.7 0.2 0.4 0.5 0.7 3.4 8.51999 1.4 0.1 0.3 0.6 0.4 2.7 7.4 a. Includes 1.7 and 0.4 thousand metric tons of magnetic powder in 1997 and 1998 respectively.

SOURCES: (A) Korean Dyestuff and Pigments Industrial Association (Korean production).

(B) Taiwan Dyestuff and Pigments Industrial Association (Taiwanese production).

(C) China Chemical Industry Yearbook, China National Chemical Information Center(Chinese production).

(D) CEH estimates.

China

Producing Companies

There are numerous pigment producers in China. Bayer Shanghai Pigment Co. (majority is owned byBayer) produces iron oxide pigments at a plant with a 20 thousand metric ton capacity in 1997 forconcrete and asphalt applications and exported the pigments to Europe, Japan and other countries.Elementis Shenzhen (majority is owned by Elementis Pigments, formerly known as Harris & Crosfield)



produces iron oxide pigments at a plant with a 20 thousand metric ton capacity at Shenzhen, Guandongprovince in 1998. These European joint ventures export significant quantities of iron oxide pigments backto Europe and also export to Japan and other countries. Jinpeng Iron Oxide Co., Ltd. at Guandongprovince, announced the completion of a plant with a 5 thousand metric ton capacity for iron oxidepigments in 2000. Production statistics in 1997/1998 may be understated for iron oxides and the totalinorganic pigment consumption is roughly estimated as 40 thousand metric tons in 1999.Chinese producers of pigments are listed below.

Chinese Producers of Inorganic Color Pigments—2001

Company Iron Oxide Chrome Yellow Ultramarine

Bayer Shanghai Pigment Co., Ltd.a XChongqing Jiangnan Chemical Factory XChongqing Xinhua Chemical Plant XGuangdong Lingyang Co. Inc. X

Harbin Paint Plant XHarbin Petrochemical Industry Corp.Henan Province Wun County No. 2 Chemical Plant XHunan Three-Ring Pigments Co., Ltd. XLinying County Chemical PlantNingbo Jinbco Group Co., Ltd. XShandong Longkou Chemical Plant XShenyang Paint General Corporation

Shenyang Paint Plant XWenzhou Huasu Group Co.Xiangtan Chemical & Pharmaceutical Industrial Co. XYiyang Shangyou Chemical Factory XYunnan Yanglin Chemical Plant XZhengzhou Xinda Chemical Co. XZhenjiang City Plant Factory XZhenjiang General Chemical Factory XZhenjiang General Chemical Industry Corp. X a. The company is a joint venture of Shanghai Coatings Company and Bayer AG, established to produce

high-quality iron oxide pigments. The joint venture started commercial production with an annualcapacity of 20 thousand metric tons in the late 1996.

SOURCE: 2000-2001 Directory of Chemical Producers—China, SRI Consulting.

Trade

Export data for selected inorganic pigments in recent years are shown in the table below. Significantquantities of iron oxide have been exported.



Chinese Trade in Inorganic Color Pigments(thousands of metric tons)

Iron Oxide Chrome Yellow Red Lead Ultramarine Blue Iron Blue

Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports

1997 20.2 118.4 0.8 1.9 0.2 1.4 0.2 3.7 0.1 2.51998 29.5 128.3 1.6 2.8 0.1 1.0 0.2 4.0 0.0 1.51999 43.6 136.7 2.0 3.7 0.1 0.9 0.1 4.0 0.1 0.1 SOURCE: China’s Customs Statistics, General Administration of Customs of the People’s Republic of China

Republic of Korea

Producing Companies

Uk Seung Chemical Company, Ltd. and Sambo Fine Chemicals Mfg. Co., Ltd. (40% owned byDainichiseika Color & Chemicals Mfg. Co., Ltd, Japan), both located at Pusan, are leading manufacturersof inorganic color pigments in the Republic of Korea. However, their product lines are limited toultramarine blue, molybdenum orange and chrome yellow.

Trade

Import and export data for selected inorganic pigments are given in the following table:

Republic of Korea Trade in Inorganic Color Pigments(thousands of metric tons)

Iron Oxide Chrome Yellow Red Lead Ultramarine Blue Iron BlueMolybdate

Chrome Orange

Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports

1991 21.4 1.0 neg -- 0.1 0.1 0.7 neg na na neg neg1992 24.3 1.8 neg -- 0.1 0.1 0.6 neg na na neg neg1993 25.9 1.4 0.88a -- 0.2 na 0.6 neg 0.1 na neg neg1994 26.9 1.7 neg neg 0.2 0.1 0.8 neg 0.1 neg neg neg1995 41.8 1.7 neg neg 0.1 neg 0.8 neg 0.1 neg neg neg1996 40.3 1.5 neg neg na 0.1 0.9 neg 0.1 neg neg neg1997 14.6 1.7 neg neg neg 0.1 0.8 0.1 0.3 neg 0.2 neg1998 23.7 3.3 neg neg neg neg 0.6 neg 0.1 neg 0.2 neg1999 23.4 4.6 neg neg neg neg 0.8 neg 0.1 neg 0.3 neg a. Chrome pigments.

SOURCE: Statistical Yearbook of Foreign Trade, Korea Customs Research Institute.

Approximately 39% of iron oxide imports came from Japan in 1999. Iron blue pigments also came mainlyfrom Japan (58%). The majority of ultramarine blue pigments originated in the United Kingdom (66%)and Japan (14%) in 1999.



Taiwan

Producing Companies

Bayer Taiwan Co., Ltd. is believed to be one of the leading players in iron oxide pigments, and importspigments from China and Germany to supply the Taiwanese market.

Trade

Import and export data for selected inorganic pigments are given in the following table:

Taiwanese Trade in Inorganic Color Pigments(thousands of metric tons)

Iron Oxide Chrome Yellow Red Lead Ultramarine Blue Iron BlueMolybdate

Chrome Orange

Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports

1991 27.2 0.7 0.3 0.5 0.9 18.5 0.5 neg 0.1 neg neg neg1992 26.9 10.4 0.4 0.7 0.6 1.2 0.6 neg 0.1 0.1 neg neg1993 17.3 2.4 0.5 0.6 0.4 1.3 0.6 neg 0.1 neg neg neg1994 17.8 4.6 0.8 0.5 0.3 1.1 0.6 neg 0.1 neg neg neg1995 20.6 7.4 1.0 0.3 0.6 2.6 0.7 neg 0.1 neg neg neg1996 21.2 5.8 0.9 0.2 0.4 3.8 0.8 neg 0.1 neg neg neg1997 9.8 3.1 neg 0.2 0.2 2.5 0.7 neg 0.1 0.0 0.1 neg1998 8.5 1.8 neg 0.2 0.3 2.4 1.0 neg 0.1 0.0 0.1 neg1999 7.6 2.0 neg 0.2 0.2 3.0 1.1 neg 0.1 0.1 0.1 neg SOURCE: Monthly Statistics of Imports and Monthly Statistics of Exports, The People’s Republic of China—Taiwan District,

Statistical Department, Directorate General of Customs, Ministry of Finance.

Taiwan’s iron oxide imports from Japan decreased from 4.47 thousand metric tons in 1997 to 1.94thousand metric tons in 1999 (25% of total iron oxide imports). On the other hand, imports from Chinaincreased from 1.47 thousand metric tons in 1997 to 2.07 thousand metric tons in 1999 (27%).Ultramarine pigment imports were mainly from the United Kingdom (58%).

ORGANIC COLOR PIGMENTS

DESCRIPTION

Organic color pigments can provide certain advantages over inorganic pigments. They generally possessgreater brightness and tinctorial strength and can serve as replacements for inorganic pigments. They areusually transparent or semitransparent, in contrast with the more opaque inorganic pigments. However,organic pigments are limited in ways that inorganic pigments are not. For example, they are subject tobleeding in some solvents and degradation after prolonged exposure to light or high temperatures. Inaddition, they are usually more expensive. However, their aesthetic and performance properties havefirmly established them in printing ink, paint, certain plastic and other applications.



Organic color pigments are classified into two categories—toners and lakes.

● A toner is a pure organic pigment that is insoluble in and unaffected by, the vehicle or substrate inwhich it is incorporated (see the definition of a pigment in the INTRODUCTION of this report).It can be applied as a colorant free of any inorganic carrier and, thus, offers the maximumpossible tinting strength for its type.

● A lake is an organic colorant that has been combined with an inorganic substrate (such as lightalumina hydrate) to produce an insoluble pigment.

● Overall, most organic pigments, both toners and lakes, are consumed as dispersions or presscakes(see the MANUFACTURING PROCESSES section for further description).

Essentially all organic color pigment production is synthetic. The major chemical classifications ofcommercial organic pigments are

● Azo● Phthalocyanine● Condensation acid● Quinacridone● Perylene

The following sections include descriptions of each of these major chemical types.

AZO PIGMENTS

Azo pigments are either monoazo, with one chromophore (–NN–) group or disazo, with more than one.As a class, azo pigments are the pigment of choice in many ink, coating and plastics applications.

Arylide (Hansa) yellows and oranges include PY-1, 3, 65, 73 and 74. They are monoazo pigments; theirnomenclature is derived from the second component of their structure, which is an arylide of acetoaceticacid. Arylides are characterized by intense color, semiopacity and high tinting strength. Lightfastness isgood in deep shades, but relatively poor in tints. They show good resistance to chemicals, but have poorbleed resistance and are sensitive to heat. Shades range from deep reddish orange to pale greenish yellow.

Diarylide yellows and oranges include PY-12, 13, 14, 17 and 83 and PO-16. The first component of adiarylide is 3,3′-dichlorobenzidine, a diaminobiphenyl compound that reacts with two molecules of thesecond component to yield the diazo pigment. The second component is an arylide, as in the arylideyellows and oranges. Diarylide yellow and orange pigments exhibit intense color in shades from deep red-orange to green-yellow and possess even greater tinctorial strength than the arylides. Diarylides showgood chemical resistance to both acid and alkali environments and generally also have good heatresistance. However, their lightfastness in tints is even poorer than that of the arylides. Bleed resistancevaries from low to high, depending upon the functional groups substituted on either the benzidine orarylide portion of the molecule. PY-12 was the largest-volume organic color pigment produced in theUnited States in 1999.

Dinitraniline orange (PO-5) is a monoazo pigment giving a bright orange shade, produced from thecoupling of beta-naphthol with 2,4-dinitroaniline. It is a low-cost pigment, of clean color and good toexcellent hiding power, having good chemical resistance, excellent dispersibility and good full-strength

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Arylide (Hansa) yellows and oranges include PY-1, 3, 65, 73 and 74.

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Diarylide yellows and oranges include PY-12, 13, 14, 17 and 83 and PO-16.

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3,3¢-dichlorobenzidine,

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PY-12 was the largest-volume organic color pigment produced in the United States in 1999.

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Dinitraniline orange (PO-5)

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ink, coating and plastics applications.



lightfastness. However, lightfastness in tints is poor. It resists bleeding in water, but not in organicsolvents.

Pyrazolone red (PR-38) and bright orange-red (PO-13 and 34) are disazo pigments whose first componentis a dichlorobenzidine derivative, as in the diarylide yellows. The second component is a derivative ofpyrazolin-5-one. Pyrazolone pigments are distinguished by high intensity, excellent color and good bleed,bake and chemical resistance. However, these pigments are more expensive than the diarylides and havelow hiding power and poor lightfastness in tint formulations.

Naphthol reds and browns include PR-2, 5, 7, 9, 17, 22, 23, 31, 112 and 170 and PBn-1, ranging fromlight yellowish red to deep maroon. They are named for their second component, which is an arylamide of3-hydroxy-2-naphthoic acid. Their outstanding features are good durability and a high degree of chemicalresistance. However, they tend to bleed in certain solvents. Naphthol pigments are used in formulatingwater-based inks. Their lightfastness is good for interior paint applications, but marginal for exterior use,with the exception of PR-170, which has good lightfastness and excellent bleed resistance in exteriorconditions. PR-112, which is less commercially important than PR-170, has excellent lightfastness but noresistance to bleeding in certain solvents. There are also some other recently developed naphthol reds thatshow greatly improved lightfastness properties.

Toluidine red (PR-3) is a monoazo pigment with a second component of beta-naphthol. It possesses goodbrightness and tinting strength, good hiding power and excellent chemical resistance. PR-3 is bleed-resistant in water but not in organic solvents. Toluidine reds are characterized as light, medium and deepand include a range of yellowish red to red shades.

Benzimidazolones are monoazo pigments that are variations on the basic benzimidazolone structure. Theyinclude PBn-25; PO-36, 60 and 62; PR-171, 175, 176, 185 and 208; PV-32; and PY-120, 151, 154, 156and 175. Their cyclic carbonamide structure makes this group of pigments much more heat-resistant andlight-fast than other less expensive monoazo pigments. The red-orange, brown, yellow and yellow-greenpigments are rather dull in color, but the red to red-violet shades (PR-176, 185 and 208 and PV-32) offergood brightness. They are all transparent except for the yellows, which are semiopaque. They aremoderately high in price, but have become very useful in the coloring of polyvinyl chloride and otherplastics because of their resistance to high heat and because they do not react with the chemicals used inplastics manufacture. They are also used in automotive and other industrial finishes, lacquers and certaininks. Although they are less expensive than quinacridones and perylenes, their growth in U.S. high-performance coatings has been limited due to the higher-quality coatings obtained with quinacridones andperylenes.

Disazo condensation pigments (including PO-31; PR-144 and 166; PY-93, 95 and 128; and PBn-23) areessentially made up of diazotized aromatic amines and 2-hydroxy-3-naphthoic acid (BON acid),condensed with aromatic diamines. By using a variety of components it is possible to obtain a wide rangeof colors in the resulting pigments. These high-molecular-weight products were developed in order toobtain colorants with improved physical properties compared with other azo pigments. In general, theyoffer excellent color intensity and tinting strength; excellent resistance to light, heat, chemicals andsolvents; and superior stability and processing capabilities. They outperform the diarylide yellows andsoluble azo reds in plastics and pigmented fiber applications. Although they are expensive, their highcolor strength keeps their overall cost at a more economical level. They have been used in plastics andcoatings as replacements for toxic lead-containing inorganic pigments. Available colors range from dullreddish brown (PBn-23) through bluish red (PR-144), orange (PR-166 and PO-31) and yellow (PY-95) tobright greenish yellow (PY-93 and 128). PR-144 and PY-93 are particularly useful in pigmented fiberapplications.

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Pyrazolone red (PR-38) and bright orange-red (PO-13 and 34)

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dichlorobenzidine derivative,

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Naphthol reds and browns include PR-2, 5, 7, 9, 17, 22, 23, 31, 112 and 170 and PBn-1,

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PR-170,

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Toluidine red (PR-3)

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They include PBn-25; PO-36, 60 and 62; PR-171, 175, 176, 185 and 208; PV-32; and PY-120, 151, 154, 156 and 175.

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Disazo condensation pigments (including PO-31; PR-144 and 166; PY-93, 95 and 128; and PBn-23)

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Naphthol pigments are used in formulating water-based inks. Their lightfastness is good for interior paint applications, but marginal for exterior use,

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useful in the coloring of polyvinyl chloride and other plastics because of their resistance to high heat and because they do not react with the chemicals used in plastics manufacture. They are also used in automotive and other industrial finishes, lacquers and certain inks.

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They have been used in plastics and coatings as replacements for toxic lead-containing inorganic pigments.

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(PBn-23) through bluish red (PR-144), orange (PR-166 and PO-31) and yellow (PY-95) to bright greenish yellow (PY-93 and 128). PR-144 and PY-93 are particularly useful in pigmented fiber applications.



Red lake C (PR-53) is prepared from 2-amino-5-chloro-p-toluenesulfonic acid and beta-naphthol. Theresulting soluble material is precipitated with either sodium salt or barium salt to form PR-53 (sodiumsalt) or PR-53:1 (barium salt). The latter product was the fifth-largest organic color pigment manufacturedin the United States in 1995. It has excellent brightness and tinting strength and fair heat resistance.Weaknesses include poor hiding power and lightfastness and poor alkali and soap resistance. Its color isbright yellowish red.

Lithol® red (PR-49) is produced by the coupling of 2-naphthylamine-1-sulfonic acid and 2-naphthol. It iscommercially produced in the form of four different salts: sodium (PR-49), barium (PR-49:1), calcium(PR-49:2) and strontium (PR-49:3). The barium salt production and use is declining, while calcium salt isgrowing, particularly in gravure printing. Lithol® red’s advantages include good color intensity andtinting strength, fairly good bleed resistance, excellent dispersibility and relatively low price. Itsdrawbacks are poor chemical and bake resistance and no lightfastness. Shades of increasingly darker redare manufactured by preparing metal salts of sodium, barium, calcium and strontium. The sodium salt isthe lightest shade; strontium is the darkest.

Lithol® rubine (PR-57) and red 2G (PR-52) are both prepared by coupling with a second component ofBON acid. Lithol® rubine has a first component of 4-aminotoluene-3-sulfonic acid and the firstcomponent of red 2G is 2-amino-5-chloro-p-toluenesulfonic acid. Lithol® rubine is available as a calciumsalt (PR-57:1) and red 2G is produced as either a calcium (PR-52:1) or manganese (PR-52:2) salt. In1995, Lithol® rubine calcium salt (PR-57:1) was the third-largest volume organic pigment produced inthe United States. Red 52:2 can be blended with molybdate orange for use in industrial coatings. Alkaliand soap resistance of Lithol® rubine and red 2G are poor and heat resistance is only fair; however,solvent bleed resistance is good, as is lightfastness in the full-strength forms. The calcium salts of bothpigments provide a clean, intense bluish-red color that is popular in printing ink formulations.

Permanent red 2B (PR-48) is prepared by coupling 6-amino-4-chloro-m-toluenesulfonic acid with BONacid. This pigment is available in four salts: barium (PR-48:1), calcium (PR-48:2), strontium (PR-48:3)and manganese (PR-48:4). All the salts have excellent bleed resistance, fair to good heat resistance andlightfastness, but poor alkali and soap resistance. The barium salt is bright yellowish red; the calcium andmanganese salts are bluer in tone.

Scarlet 3B lake (PR-60) is a monoazo lake pigment that is precipitated onto an alumina hydrate substrate.It is prepared as the barium salt of the coupling of anthranilic acid and 2-naphthol-3,6-sulfonic acid. Itsclear, bright red tone, good lightfastness and high bake and bleed resistance, combined with its moderateprice, make it competitive with other red pigments for many applications. However, it is limited byinferior acid, alkali and soap resistance and must be specially treated to reduce water solubility.

PHTHALOCYANINE PIGMENTS

Phthalocyanine blue and green pigments (including PB-15 and 16 and PG-7 and 36) are based on thephthalocyanine chromophore, which is synthesized from phthalonitrile or from phthalic anhydride andurea. Its large, symmetrical structure, full of conjugated double-bonds, makes it a stable, intensely colorcompound that is the basis for what has become the leading group of colorants in several applications.

In general, all the phthalocyanine pigments exhibit excellent transparency, lightfastness, heat stability,chemical and bleed resistance, processing capabilities and durability. Phthalo prices are generallymoderate to high, although the high tinting strength of these pigments makes them economical in terms of

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Red lake C (PR-53)

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Lithol® red (PR-49)

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Lithol® rubine (PR-57) and red 2G (PR-52)

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Permanent red 2B (PR-48)

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Scarlet 3B lake (PR-60)

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(including PB-15 and 16 and PG-7 and 36)

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The latter product was the fifth-largest organic color pigment manufactured in the United States in 1995.

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(PR-57:1) was the third-largest volume organic pigment produced in the United States.

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printing ink formulations.



coloring value. Phthalo blues are the “workhorse” blue pigment in every major end-use market fororganic pigments.

Copper phthalocyanine blue, PB-15, is available in two crystalline modifications: the alpha form PB-15,15:1 and 15:2, which is reddish blue and the beta form PB-15:3 and 15:4, which is more stable andgreener in tone. PB-15:3 was the largest-volume organic color pigment produced in the United States in1999. The alpha form often converts to the beta form in strong solvents and at high temperatures and alsohas a tendency toward flocculation. It can be modified (by special surface treatments or by the addition ofchlorine to the phthalocyanine molecule) to be noncrystallizing (NC) or nonflocculating (NF). The betaform is already stable and noncrystallizing, but it can be treated to be nonflocculating. Thus, the twopossible beta forms are PB-15:3 (NC) and PB-15:4 (NCNF). The betas are greener and less intense. Theyhave less bronzing tendency than the alphas, but are equal to them in their other physical properties.Because of their replacement of iron blue in publication gravure ink applications, copper phthalo blues areexperiencing high growth rates. Consumption of PB-15:2, which is a red shade, is also increasing at asubstantial rate, because of its growth in plastics and automotive coatings applications. One of the newerphthalocyanine pigments is PB-15:6, which is the epsilon modification of copper phthalocyanine. Thispigment has the reddest blue shade of all phthalocyanine pigments.

Phthalocyanine blue, metal-free (PB-16) is a version of the phthalocyanine molecule in which the centralcopper atom has been replaced with two hydrogens. The resulting pigment is much greener than thecopper modifications. However, its metal-free characteristic is its sole selling point over other lessexpensive phthalos. The metal-free pigment is available in solvent-unstable (alpha) and solvent-stable(beta) crystalline forms. It is consumed in small quantities, but is growing very quickly as a specialtypigment in certain copier systems requiring metal-free color receptors, because of toxic-metal concerns.PB-16 is supplied only through U.S. imports, mainly by BASF Corp.

Phthalocyanine green pigments (PG-7 and 36) are modifications of the copper phthalo blues, with thereplacement of hydrogen atoms on the molecule by chlorine atoms (PG-7) or by chlorine and bromineatoms (PG-36). The presence of up to fifteen chlorine atoms produces the green shade of PG-7 and thepresence of two to ten chlorine atoms and four to nine bromine atoms yields the yellow-green shades ofPG-36 (the more bromine, the yellower the color). The physical characteristics of these pigments are likethe phthalo blues except that the greens are not subject to crystallization. Phthalo greens are used incoatings, plastics, inks and textiles.

CONDENSATION ACID PIGMENTS

These pigments are acidic salts produced from dyes and are like basic dye pigments in that they containthe triphenylmethane group (or a closely related structure) for a chromophore (see discussion underOTHER ORGANIC PIGMENTS and in the MANUFACTURING PROCESSES section for furtherdescription of basic dye pigments). The two most important pigments in this family are the alkali blues,PB-19 and 61. In this report, PB-19 and 61 will be treated as a combined pigment and referred to as alkaliblue, since in practice they are for the most part used interchangeably.

Alkali blue pigments are prepared by sulfonating a phenylated derivative of rosaniline. The product is anacidic internal salt that is insoluble in water. Alkali blues are bright blue to greenish blue in color andexhibit the highest tinctorial strength of any blue pigment. They are transparent, with fair to good bleedand chemical resistance, good dispersibility and fair heat resistance. Their lightfastness is better than thatof basic dye pigments but not as good as the phthalocyanine blues. They are suitable for use in inks, aloneor as a toner for carbon black pigments. Combined with carbon black, they increase the opacity and

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two most important pigments in this family are the alkali blues, PB-19 and 61.

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PB-15:3 was the largest-volume organic color pigment produced in the United States in 1999.

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Consumption

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is also increasing at a substantial rate, because of its growth in plastics and automotive coatings applications.

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Phthalo greens are used in coatings, plastics, inks and textiles.

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They are suitable for use in inks, alone or as a toner for carbon black pigments.



covering ability of ink. The high tinting strength and low cost of alkali blue pigments make them the mosteconomical of the blue pigments for certain applications.

QUINACRIDONE PIGMENTS

Quinacridone pigments (PV-19 and 42; PR-122, 202, 206, 207 and 209; and PO-48 and 49) are allvariations on the basic quinacridone structure, which is Pigment Violet 19. The other quinacridonepigments have substituents, such as methyl groups and chlorines attached to the quinacridone ring, or arecombinations of the basic quinacridone with quinacridonequinone, a related structure. The basicchromophore structure of the quinacridones is very symmetrical and stable. Thus, these pigments possesssuperior color, brightness and tinctorial strength, as well as excellent physical properties. Theirlightfastness, heat stability and chemical and bleed resistance make them suitable for many high-performance applications including quality paints, inks and plastics, despite their very high cost. Colorsrange from deep yellowish orange (PO-48 and 49) through bright yellowish red (PR-207 and 209)through bluish red and maroon (PR-122, 202 and 206) to violet (PV-19 and 42). They are used mainly inautomotive coatings, for both topcoats and refinishes and secondly in plastics. Both quinacridones andperylenes (see description below) are used in conjunction with metals to produce metallic finishes.

PERYLENE PIGMENTS

Perylene reds include PR-123, 149, 178, 179, 190 and 224. They are anthraquinone pigments, derivativesof perylene-3,4,9,10-tetracarboxylic diimides. They provide excellent chemical, bleed and bake resistanceand generally superior lightfastness, although PR-149 is not light-resistant enough for exterior use. Theyare available in several transparent and semitransparent shades, with PR-123, 149 and 178 offeringbrighter colors than the comparatively dull tints PR-179, 190 and 224. Though expensive, they have animportant role in the market for high-performance specialty pigments and find considerable use inexterior automotive coatings, particularly the bright red colors. The U.S. supply of perylenes is dominatedby Bayer, with the balance coming mainly from BASF.

OTHER ORGANIC PIGMENTS

Basic dye pigments contain the chromophore triphenylmethane or a similar structure. Permanent basicdye pigments include rhodamine red and violet (PR-81 and PV-1) and methyl and ethyl violets (PV-3 andPB-14). Of these, methyl violet is the most commercially significant. These pigments exhibit excellentcolor, transparency and tinting strength. Although they are costly, their superior aesthetics and mostlyexcellent physical properties make them the pigments of choice in specialty ink applications, where theirshades are needed to match colors. Fugitive methyl violet (PV-3:3) is exceptionally bright and beautifullycolored, but as indicated by the term fugitive, it has poor durability and bleeds in many media.

Carbazole violet (PV-23) is made from aminoethylcarbazole and chloranil to produce the conjugateddouble-bonded ring structure of the dioxazine pigment. Carbazole violet exhibits an exceptionally bright,strong blue-violet color, of excellent heat, chemical and bleed resistance and good lightfastness, althoughit is very expensive. Carbazole violet is almost always used with other pigments, mostly for pearlescentautomotive coatings where it provides a blue color with a red shade (or tint) to the final finish.

Diketo-pyrrolo-pyrrole (DPP) pigments, discovered by Ciba-Geigy AG, were introduced to theautomotive market in 1986. Today, two pigments are manufactured; the main pigment is PR-254 and of

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Quinacridone pigments (PV-19 and 42; PR-122, 202, 206, 207 and 209; and PO-48 and 49)

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They are used mainly in automotive coatings, for both topcoats and refinishes and secondly in plastics. Both quinacridones and perylenes (see description below) are used in conjunction with metals to produce metallic finishes.

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Perylene reds include PR-123, 149, 178, 179, 190 and 224. They are anthraquinone pigments,

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market for high-performance specialty pigments and find considerable use in exterior automotive coatings, particularly the bright red colors.

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Basic dye pigments

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rhodamine red and violet (PR-81 and PV-1) and methyl and ethyl violets (PV-3 and PB-14).

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methyl violet is the most commercially significant.

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specialty ink applications, where their shades are needed to match colors.

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Carbazole violet (PV-23)

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Carbazole violet is almost always used with other pigments, mostly for pearlescent automotive coatings where it provides a blue color with a red shade

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Diketo-pyrrolo-pyrrole (DPP) pigments,

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automotive market in 1986.

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the main pigment is PR-254 and of



minor importance is PR-255. DPP pigments are reportedly synthesized by reacting a succinic ester with abenzonitrile in the presence of sodium methylate in methanol. DPP pigments possess excellent coloristicproperties and are used primarily in the demanding automotive market. In 1992, the solid solutionpigment of quinacridone and DPP entered the plastics market.

Alizarine red and maroon (PR-83 and PV-5:1) are both anthraquinone pigments of very small usage.Alizarine red is a bright bluish-red shade and alizarine maroon is reddish-violet.

Tetrachloroisoindolinones (PY-109 and 110, PO-42 and 61 and PR-180) are made by joining two 4,5,6,7-tetrachloroisoindolinone residues to a diamine. The nature of the diamine determines the color of theresulting pigment, which can be anything from greenish yellow to bright red. This class of pigments ischaracterized by excellent brightness, tinting strength, stability and ease of processing. Although they arevery costly, their high degree of heat and bleed resistance is sufficient for use in most plastics and fibersand their lightfastness and chemical resistance make them useful in automotive paints and other high-performance coatings.

Fluorescent organic pigments consist of various dyestuffs (e.g., rhodamines) that have been placed on aresin matrix and are not considered lakes. Resins are based on formaldehyde, polyester or nylon. They areused for apparel/textile printing, fluorescent plastics and some inks. Data on fluorescent brighteners areincluded in the CEH marketing research report on Dyes. For this reason, fluorescent organic pigments arediscussed only briefly in this report and are not included in the data.

MANUFACTURING PROCESSES

Organic pigments are typically produced in two steps: the chemical synthesis of the pigment and itsfinishing or conditioning, to obtain specific properties. The finishing step enhances and stabilizes thedesired pigment characteristics, including its physical form.

When synthesis and finishing are complete, the pigment is normally filtered and washed to removeimpurities, at which point it is usually referred to as the presscake. As part of their organic pigmentproduct line, most producers sell water-wet presscake or dry color/powder, which is presscake that hasbeen dried and pulverized. However, both presscake and dry powder may undergo various treatments tofurther tailor the pigment’s characteristics to meet user needs.

Finishing of presscakes for printing ink and similar applications involves two major procedures: (1)drying, grinding and possibly dispersing, and (2) flushing. Pigment dispersion involves thorough mixingof the dried and ground pigment with another material, which is most often liquid, as is done for ink andcoating applications. Flushes are produced when the water content of a presscake is replaced or flushedaway, by an oil-based liquid. In this case, the oil base that is used is specific to the intended use.

AZO PIGMENTS

There are many types of azo pigments derived from a number of different starting materials and a varietyof methods for manufacturing them. In general, the following steps are taken in the production of azopigments.

The first component, a primary aromatic amine (or a diamine, in the case of diazo pigments), is dissolvedor suspended in an acidic solution. Sodium nitrite is added, which forms nitrous acid in the solution and

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minor importance is PR-255.

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DPP pigments possess excellent coloristic properties and are used primarily in the demanding automotive market.

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the solid solution pigment of quinacridone and DPP entered the plastics market.

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Alizarine red and maroon (PR-83 and PV-5:1) are both anthraquinone pigments

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Tetrachloroisoindolinones (PY-109 and 110, PO-42 and 61 and PR-180)

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use in most plastics and fibers and their lightfastness and chemical resistance make them useful in automotive paints and other highperformance coatings.



diazotizes the amine. The temperature is usually held below room temperature during this step of themanufacturing procedure. The unisolated diazonium salt can then be coupled under basic conditions withthe second component, which is a phenol, naphthol, aromatic, amine or methylene group. Typicalexamples of the second component are 2-naphthol, 3-hydroxy-2-naphthoic acid, an arylide or arylamideof acetoacetic acid or a pyrazolone derivative. After the coupling process is complete, if the pigment isinsoluble, it will precipitate from the solution. Examples of this type are arylide (Hansa) yellows andoranges, diarylide yellows, orthonitraniline and dinitraniline oranges, pyrazolone oranges and reds,naphthol reds and browns, toluidine red, para red, parachlor red and chlorinated para red. If the pigment issoluble, the addition of a metal salt is required to precipitate the toner. Soluble azos contain anionicgroups, such as sulfonic or carboxylic acid; examples include Lithol® red and Lithol® rubine, red lake C,red 2G, permanent red 2B and scarlet 3B lake. Finally, the product is filtered and either washed and driedor prepared as a flush color.

Production factors affecting the intensity, shade and physical properties of the finished pigment includethe method and rate of coupling, the pH and temperature of the reaction solution, the concentrations of thereactants, the mixing efficiency and the drying method and temperature. These factors all affect theultimate size, shape and surface area of the pigment particles, which in turn influence color, brightnessand such properties as dispersibility and flow of the final product.

PHTHALOCYANINE PIGMENTS

There is more than one commonly used method of preparing phthalocyanine pigments. In one process,phthalic anhydride is combined with urea, a copper salt (usually copper-I chloride, but copper-II chloridemay also be used) and a catalyst, as follows:

+ 8 H2O + 4 CO2

N

C

N

CCNN

C

N

CC

CN

C

•••

Cu•••

N N

C

O

C

+ 4 H2N NH2 + 2+ +

catalyst

O O

4 –

C

O

2eCu



The catalyst may be a molybdate or molybdic acid derivative. The reactants can be dissolved in anorganic solvent or heated to 180-200°C to complete the reaction. Then the product is washed with hotwater or hot dilute acid to remove any urea by-products formed during the reaction.

A second method uses phthalonitrile and a copper salt for starting materials, as follows:

+ Cu2+ + 2 e

N

C

N

CCNN

C

N

CC

CN

C

•••

Cu•••

N N

CN

CN

4 –

The reaction conditions are the same as for the first method, requiring an organic solvent or heating.However, no washing is needed after completion. The product of both of the above methods is not afinished pigment but is the basic blue copper phthalocyanine structure. Different methods of finishing areapplied, depending on the pigment form ultimately desired.

To obtain the alpha forms PB-15 and 15:1, the base product is acid-pasted (mixed with concentratedsulfuric acid followed by rapid dilution with water). PB-15:2 can be obtained from the acid-paste method,but is more commonly obtained from the salt-ground monochlor. The beta form (PB-15:3, 15:4) is madeby grinding the phthalocyanine base in the presence of a polar solvent. Other surface treatments can beapplied at this point, to either the alpha or the beta form pigment, to yield a product of upgraded physicalproperties, such as a noncrystallizing or nonflocculating pigment.

The metal-free pigment (PB-16) is usually made by following the phthalonitrile method to produce not acopper salt but a sodium, calcium or magnesium salt. This is followed by treatment with dilute acid toremove the metal ion. Acid pasting is then used to obtain the finished pigment.

In the synthesis of phthalo green (PG-7), the phthalocyanine base is dissolved in a strong chlorinatedsolvent (such as chlorosulfonic acid, sulfonyl chloride or aluminum chloride–sodium chloride eutecticmixture) to replace from thirteen to fifteen hydrogens with chlorines on each molecule. PG-36 is made byfirst applying brominated solvent until a desired number of bromines have been substituted for hydrogen,followed by application of chlorinated solvent to attach chlorines on some of the remaining sites. Usuallyeleven to fourteen hydrogens are replaced, with four to nine bromines and two to ten chlorines.

After the halogenation step is completed, the solvent-pigment mixture is poured into water to separate thepigment from the solvent. The product may then be acid pasted or ground to produce the finishedpigment.



QUINACRIDONE PIGMENTS

Quinacridone pigments are usually prepared by one of the following methods:

● Cyclization of 2,5-diarylamino terephthalic acid or one of its derivatives:

HOOC

COOH

N

H

N

H

polyphosphoric acid

H

N

C

O H

N

O

C

2,5–di(phenylamino) terephthalic acid quinacridone

● Oxidation of a dihydroquinacridone:

H

N

C

H

N

O

C

H H

H HO

H

N

C

O H

N

O

C[O]

dihydroquinacridone quinacridone

● Reduction of quinacridonequinone:

H

N

C

O H

N

O

C

H

N

C

O H

N

O

C

O

C

C

O

[H]

quinacridonequinone quinacridone

The crude product from each of these reactions is subjected to acid pasting or salt or solvent grinding torecrystallize the quinacridone. The final step in the manufacture is to apply various finishing techniques tooptimize the pigment’s physical properties.



BASIC DYE PIGMENTS

Basic dye pigments are manufactured with great care to maximize brightness, color and physicalproperties. They are the most customized of the organic pigments.

The production process begins with the dissolution of the dyestuff in mineral acid solution (usuallyhydrochloric or sulfuric acid). Meanwhile, the precipitating substance is prepared in a separate vessel. If apermanent pigment is desired, the precipitant is a complex inorganic acid, such as phosphomolybdic acid(PMA) or phosphotungstic acid (PTA). For a fugitive pigment, tannic acid is the most commonly usedprecipitant. After both the dye solution and the precipitant are prepared, they are mixed together at acontrolled temperature. The precipitation proceeds rapidly and, in the case of tannic acid, is finished withtartar emetic to improve the color intensity of the finished toner. Further specialized treatments may beapplied at this point to upgrade the particle uniformity and surface properties. Finally, the product is filterpressed, washed to remove soluble salts and either dried and ground or prepared as a flush color.

SUPPLY AND DEMAND BY REGION

UNITED STATES

Producing Companies

The following table lists U.S. producers of organic color pigments:

U.S. Producers of Organic Color Pigments—March 2001a

Azob PhthalocyaninCondensation

Company and Plant Location Red Yellow Blue Green Acid Other

Apollo ColorsRockdale, IL X X X

Allegheny Chemical Corp.,subsidiary

Ridgway, PA X X

BASF CorporationCoatings and Colorants Division

Huntington, WV X


Bushy Park, SC X Xc

CDRCincinnati, OH X X XElizabethtown, KY X XHolland, MI X X X X

Ciba Specialty ChemicalsCorporation

Colors DivisionNewport, DE X

Clariant CorporationCoventry, RI X X X



U.S. Producers of Organic Color Pigments—March 2001a (continued)

Azob PhthalocyaninCondensation

Company and Plant Location Red Yellow Blue Green Acid Other

Daicolor-Pope, Inc.Paterson, NJ X X X X

Engelhard CorporationSpecialty Pigments andAdditives

Louisville, KY X X X X

European Colour Inc.Fall River, MA X X X X

Galaxie Chemical Corp.Paterson, NJ X X

BFGoodrich Performance MaterialsCincinnati, OH X X X X XNewark, NJ X

Industrial Color Inc.Joliet, IL X X X

Keystone Color Works, Inc.York, PA X X X X

C. Lever Co. Inc.Philadelphia, PA X

Magruder Color Company, Inc.Elizabeth, NJ X X X X X

Indol DivisionCarteret, NJ X X

Max Marx Color Corp.Irvington, NJ X X X X

Nichem Corp.Chicago, IL X

Sun Chemical CorporationPigments Division

Cincinnati, OH X X X X XMuskegon, MI X X XNewark, NJ XRosebank, NY X X X X

a. An “X” indicates pigments produced in commercial quantities. Includes production for captive consumption.

Excludes U.S. pigment producers whose only pigment products are organic food, drug and cosmetic (FD&C)lakes and fluorescent organic pigments (both of which are made from dyes), that are not primary producers oforganic pigments. (See the CEH product review on Dyes for further information.)



b. Red, yellow, blue and green designations are based on Colour Index names of the organic pigments.

c. Include perylenes, quinacridones, carbazoles and isoindolins.


Since 1997, the following changes have occurred among U.S. organic color pigment producers:

● In 1997, CDR closed its Ridgway, Pennsylvania organic pigments plant.

● In 1997 Hoechst merged with Clariant Corporation.

● In 1997, Ciba Specialty Chemicals completed the construction of a new facility to producechromophtal diketo-pyrrolo-pyrrole (DPP) orange TRP transparent pigments in Newport,Delaware.

● Alex Color phased out organic pigment production.

● In 1999 Cookson closed its organic pigments plant in Newark, New Jersey.

● In November 2000, Ulich Color was purchased by Magruder Color Company Inc.

● In November 2000, Allegheny Chemical Corp. was purchased by Apollo Colors.

● In March 1998, the Freedom Chemical Company, (formerly Hilton Davis Company) wasacquired by the BFGoodrich Company. The business was integrated into existing BFGoodrichspecialty additives businesses. In late 2000, the pigments business along with the performancematerials segment was subsequently acquired by a private investment group consisting of AEAInvestors Inc., DLJ Merchant Banking Partners and DB Capital Partners. BFGoodrichPerformance Materials is now a privately-owned, independent company.

During the past ten years, the organic pigments market has grown in volume terms, concurrent withindustry consolidation, including plant closures and company mergers. Large-volume, lower-valueorganic pigment capacities were reduced with the closure of CDR’s Ridgway, Pennsylvania pigmentsplant in early 1997. BASF continued its retreat from U.S. production by selling its Holland, Michiganorganic pigment plant to CDR, leaving BASF with only one U.S. organic pigment production siteproducing only alkali blue organic pigments. Hoechst Celanese merged its pigment business with ClariantCorporation in mid-1997.

The largest U.S. producers/suppliers of organic color pigments as of 2000 are summarized in thefollowing table:



Market Positions of U.S. Producers/Suppliers of Organic Color Pigments—2000a

U.S. Organic PigmentsSales Ranking

U.S. Organic PigmentsSales Revenueb

(millions of dollars)

PigmentMarkets Served

(decending order)

1 Sun Chemical Corporation 325-350 Ink2 CDR 150-175 Ink3 Ciba Specialty Chemicals 125-150 Paints and coatings/plastics/ink4 Clariant Corporation 100-125 Paints and coatings/ink/plastics5 BASF Corporation 75-100 Paints and coatings/ink6 Bayer Corporation 75-100 Paints and coatings/plastics7 Magruder Color Company, Inc. 50-75 Ink/plastics/paints and coatings8 Apollo Colors 50-75 Ink a. Excludes companies that do not produce organic pigments in the United States (e.g., distributors).

b. Includes domestically produced and imported organic pigments.


Five of the top eight U.S. organic pigment producer/suppliers have non-U.S. ownership: four wereWestern European–Ciba, Clariant, Bayer and BASF—and one was Japanese, Sun Chemical. Unlike theirdomestically owned counterparts, U.S. producer/suppliers with foreign ownership have enjoyed both theability to supply their U.S. pigment operations with production from overseas plants and the potentiallylarger pool of resources for the research and development of new products.

Sun Chemical’s major organic pigment business is in inks, where it is the leading U.S. supplier ofdomestically produced pigments. Its line ranges from high-volume, low-value organic pigments to high-performance, high-value pigments, including quinacridones and perylenes. Roughly 40-45% of SunChemical’s total organic pigment sales in terms of final dollar value is in flushes, where it is again theleading U.S. supplier. Quinacridones account for 10-20% of sales and over 20% of domestic production isexported. Carbazol violet accounts for 5-10% of U.S. sales. Exports by Sun Chemical consist largely ofazos and phthalocyanines. Sun is the second-largest U.S. supplier of quinacridone PV-19.

CDR is the largest domestically owned U.S. supplier of organic pigments to the U.S. ink industry. CDR’sacquisition of BASF’s Holland, Michigan organic pigment plant in 1996 gave CDR a more efficient plantand significantly increased its ink market share. CDR’s pigment line includes yellows PY-12, PY-14; redsPR-57:1, PR-49:1, PR-53:1, PR-48:1; green PG-7 and blue PB-15:3.

Ciba Specialty is the industry leader in technology advancement and research. It produces onlyquinacridones in the United States, holding the largest domestic market share of these pigments. It ischaracterized as a supplier of low-volume, high-value products within the organic pigments range.Exports constitute a sizable portion of its U.S. sales and it supplements its U.S. product line with importedazo, phthalocyanine and DPP pigments from its United Kingdom and Swiss operations.

Clariant Corporation completed its pigments business merger with Hoechst in July 1997. This mergerfurther concentrated European organic pigment operations but had little impact on U.S.-based pigmentcapacity. Clariant’s U.S. organic pigment sales are primarily to coatings manufacturers. In addition,Clariant is the largest U.S. supplier of organic pigments used in general, industrial and trade sales paintsand is an important supplier of benzimidazolones. Over 40% of Clariant’s U.S. organic pigment sales arederived from imports.

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important supplier of benzimidazolones.

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It produces only quinacridones in the United States,

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imported azo, phthalocyanine and DPP pigments from its United Kingdom and Swiss operations.

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Its line ranges from high-volume, low-value organic pigments to highperformance, high-value pigments, including quinacridones and perylenes.



BASF is the world’s largest producer of alkali blue and is the largest U.S. supplier of that pigment,holding roughly 75% of the U.S. market. BASF’s alkali blue is made at the Huntington, West Virginiaplant. BASF is the second-largest U.S. supplier of perylenes. Imports by BASF account for the majorityits total value of U.S. organic pigment sales; exports also account for a significant share. Value-addedorganic pigment products (i.e., flushes and dispersions) represent up to 30% of its total organic pigmentsales. In sales value, BASF’s most important individual organic pigments are its phthalocyanines,followed by its perylenes, PR-178 and 179 (all of which are imported). Its PR-178 is used largely in theU.S. automobile industry.

Bayer is the largest perylene producer and has the largest share of U.S. perylene supply. Bayer’s largestU.S. organic pigments market segment is high performance pigments for coatings, particularlyautomotive finishes; these constitute 70-80% of its total U.S. organic pigment sales. Like Ciba, Bayersupplies low-volume, high-value organic pigments, particularly perylenes, phthalocyanines andquinacridones as well as specialty yellows. Bayer’s second-largest organic pigments market segment isplastics. All of Bayer’s perylenes are domestically produced and significant amounts are exported.

Magruder Color is the second-largest domestically owned U.S. supplier of organic pigments; its specialtyis flush colors for inks; Magruder’s major business is organic pigments for inks. A significant quantity ofits organic pigment sales are from flushes made from purchased pigments. Magruder’s November 2000purchase of Uhlich Color gave it a broader customer list as well as additional pigment productiontechnology.

Apollo Colors is the third-largest domestically owned U.S. organic pigment producer and the fourth-largest flush color manufacturer for the ink market in the United States. Apollo’s product line includes redand yellow azos and phthalocyanine blue and green, specialty pigment dispersions from purchasedpigments and phthalocyanine pigment press cakes. Apollo’s November 2000 purchase of AlleghenyChemical Corp. gave it an additional production site and provided the ability to supply dryphthalocyanine pigments to plastics and coatings market segments as well as increase its coverage of theink market segment.

Producing companies and plant locations for the ten organic color pigments of largest production volumein the United States are listed in the following table (pigments are generally listed from highest to lowestproduction volume):

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BASF is the world’s largest producer of alkali blue

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BASF’s most important individual organic pigments are its phthalocyanines, followed by its perylenes, PR-178 and 179

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Bayer is the largest perylene producer and has the largest share of U.S. perylene supply.

May

200

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U.S. Producers of Largest-Volume Organic Color Pigments—March 2001


Di-arylideYellowAAA

(PY-12)

Phthalo-cyanine

Blue(beta)

(PB-15:3)

Lithol®

Rubine,Calcium

Salta

(PR-57:1)

AlkaliBlue

(PB-19and

PB-61)

Di-arylideYellowAAOT(PY-14)

Lithol® Red,Barium

Salt(PR-49:1)

RedLake C,Barium

Salt(PR-53:1)

PermanentRed 2B,Barium

Salt(PR-48:1)

Phthalo-cyanineGreen(PG-7)

Quin-acridone

Violet(PV-19)

Apollo ColorsRockdale, IL X X X X X X

Allegheny Chemical Corp.Ridgway, PA X X

BASF CorporationCoatings and Colorants Division

Huntington, WV X


Bushy Park, SC X X

CDRCincinnati, OH X X X X X X XElizabethtown, KY X X X X XHolland, MI X X X X X X X X

Ciba Specialty ChemicalsCorporation

Colors DivisionNewport, DE X

Clariant CorporationCoventry, RI X X X X

Daicolor-Pope, Inc.Paterson, NJ X X X X X

Engelhard CorporationSpecialty Pigments and Additives

Louisville, KY X X X X X

Euoropean Colour.Fall River, MA X X X X X X

May

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U.S. Producers of Largest-Volume Organic Color Pigments—March 2001 (continued)


Di-arylideYellowAAA

(PY-12)

Phthalo-cyanine

Blue(beta)

(PB-15:3)

Lithol®

Rubine,Calcium

Salta

(PR-57:1)

AlkaliBlue

(PB-19and

PB-61)


Lithol® Red,Barium

Salt(PR-49:1)

RedLake C,Barium

Salt(PR-53:1)


Salt(PR-48:1)


Quin-acridone

Violet(PV-19)

Galaxie Chemical Corp.Paterson, NJ X X

BFGoodrich Performance MaterialsCincinnati, OH X X X X X X X

Industrial Color Inc.Joliet, IL X X X X X

Magruder Color Company, Inc.Elizabeth, NJ X X X X X X X X

Indol DivisionCarteret, NJ X X

Max Marx Color Corp.Irvington, NJ X X X X

Nichem Corp.Chicago, IL X

PMC IncChicago, IL X

Sun Chemical CorporationColors Group

Pigments DivisionCincinnati, OH X X X X X X XMuskegon, MI X X XNewark, NJ XRosebank, NY X X X X

a. Although PR-57:1 is commonly referred to as “Lithol® rubine, calcium salt,” Lithol® for this pigment is a registered trademark of BASF Corporation.


N R Kannan

U.S. Producers of Largest-Volume Organic Color Pigments—March 2001 (continued)



Salient Statistics

Time series data on the U.S. production of organic color pigments by chemical type are presented in thefollowing table:

U.S. Production of Organic Color Pigments by Chemical Typea


Azob

Phthalo-Conden-

sationRedc Yellowd Other cyaninee Acidf Dyeg Otherh Unspecifiedi Totalj

1960k 8.76 -- -- 2.93 2.71 0.77 0.20 1.28 16.66

1965 10.69 -- -- 5.00 2.90 0.88 0.20 1.96 21.63

1970 12.75 -- -- 5.05 3.00 1.42 0.23 3.08 25.54

1975 12.99 -- -- 4.30 1.03 1.22 0.14 2.85 22.53

1980 18.80 -- -- 5.51 3.48 0.67 0.58 2.37 31.411981 20.68 -- -- 6.57 3.59 0.66 0.63 2.26 34.381982 19.82 -- -- 5.12 3.29 0.54 0.64 2.90 32.321983 22.57 -- -- 6.44 3.08 0.65 0.73 2.16 35.641984 23.45 -- -- 6.07 3.65 0.73 1.22 3.75 38.85

1985 11.67 9.63 1.01 5.42 3.92 1.45 0.19 3.39 36.681986 12.82 10.33 1.25 8.34 3.91 0.58 1.00 1.91 40.151987 13.80 10.90 1.21 8.18 4.64 0.63 1.24 2.01 42.601988 13.57 12.49 1.12 10.34 3.91 0.64 1.36l 2.42m 45.85lm

1989 14.31 13.06 1.22 10.65 5.08 0.68 2.11 3.25 50.36

1990 16.91 14.10 1.25 11.53 5.96 1.05 0.93 1.72 53.451991 15.96 14.55 1-1.5 10-12 5-6 0.8-1 1-2 na 51.311992 19.23 14.69 1-1.5 10-12 5.5-6.5 0.8-1 1.5-2.5 na 56.941993 11.55 13.51 1-1.5 10.94 5.5-6.5 1.0-1.2 2.0-3.0 na 59.601994 13.95 14.84 1-1.5 13.49 5.5-6.5 1.0-1.2 2.0-3.0 na 61.0

1995 13.49 14.92 1-1.5 14.57 5.5-6.5 1.0-1.2 2.5-3.5 4.5-7.2 60.21996 13.5 15.0 1.3 14.6 6.0 1.1 3.0 5.8 60.31997 13.0 15.1 1.3 14.5 6.0 1.1 3.0 8.5 62.51998 14.3 16.6 1.4 15.6 6.0 1.2 3.3 9.2 67.61999 15.0 18.2 1.7 17.0 6.0 1.3 3.6 8.7 71.5 a. The net weight of synthetic organic color pigments includes lakes, toners and active toner content of extended toners. The

toner content of extended toners and flush colors represents the active coloring portion of the pigment; the remainderconsists of inert materials added to improve certain physical properties of the pigment, such as float and flocculationresistance. Specific pigments included under each chemical type vary from year to year, depending on the availability ofindividually reported figures. Data probably exclude food, drug and cosmetic lakes and fluorescent pigments, both of whichare made from dyes and are probably reported as dye production.

b. Data may include monoazo brown, naphthol brown, arylide orange, diarylide orange, dinitraniline and orthonitranilineorange, pyrazolone orange, Lithol® red, Lithol® rubine, naphthol red, red 2G, para red, parachlor red, chlorinated para red,permanent red, pyrazolone red, red lake C, scarlet 3B lake, toluidine red and unspecified red lakes.

c. Includes all specified azo pigments possessing red Colour Index names and unspecified naphthol azo reds as reported in thesource.

d. Includes all specified azo pigments having yellow Colour Index names as reported in the source.



e. Data include phthalocyanine blue and green.

f. Data may include alkali blue, peacock blue (before 1966), phloxine red and all blue toners for which individual quantitiesare not reported. Data for all other blue toners in the source are estimated to be mostly for production of alkali blues.

g. Data may include Victoria blue, basic blue, brilliant green, malachite green, permanent green, methyl violet, ethyl violet,fuschine, rhodamine red and violet and all violet toners for which individual quantities are not reported.

h. Data include quinacridone violet and red, alizarine red and maroon, pigment green B (before 1974) and carbazole violet.

i. Data include all yellow, orange, red, green and brown toners for which individual quantities are not reported andunspecified lakes. Data also include black toners in 1973-1977 and 1981-1988 (see the following table for furtherinformation on production of black toners). Data include some phthalocyanine green in 1984.

j. Data include black toners in 1973-1977 and 1981-1988. Totals may not equal the sums of the categories because ofrounding. Totals are CEH estimates 1993-1999.

k. Data for 1960 are not comparable to data for later years, since the breakdown of production data was changed by the sourcebeginning in 1961.

l. Includes an estimated 0.6 thousand metric tons of quinacridone production omitted from the quantity reported in the source.

m. Includes an estimated figure for 1988 unspecified red toner production.

SOURCES: (A) CEH estimates (data for 1966 and 1991-1995 for CONDENSATION ACID, UNSPECIFIED and TOTAL;data for 1983 for AZO, CONDENSATION ACID, UNSPECIFIED and TOTAL; data for 1988 for OTHERand TOTAL; datum for TOTAL for 1989; all data for OTHER AZO, PHTHALOCYANINE; data for DYEand OTHER for 1991 and 1993-1995; data for AZO RED for 1993 and information in footnotes a, d, l and mand all data for 1996-1999).

(B) Synthetic Organic Chemicals, U.S. Production and Sales, U.S. International Trade Commission (all otherdata 1960-1995 and information in footnotes a, i, j and m).

(C) T. C. Patton, ed., Pigment Handbook, vol. 1, John Wiley & Sons, Inc., New York, 1973 (information infootnotes b, c and e-h).

Growth in organic pigment production is generally related to the overall economy and more directly to thelargest market segment, printing inks. Growth in production over the past two decades has beenconcentrated in phthalocyanine pigments and the high-performance pigments, such as quinacridones andperylenes.

Data for U.S. production of organic color pigments by color are presented in the following tables:



U.S. Production of Organic Color Pigments by Colora


Redb Bluec Yellowd Violetb Green Orange Otherbe Totalf

1960 7.81 4.15 2.20 0.46 1.38 0.26 0.40 16.66

1965 9.33 5.54 3.15 0.55 2.22 0.46 0.39 21.64

1970 10.08 6.00 4.64 1.07 1.81 0.37 1.57 25.54

1975 9.25 4.78 5.28 1.03 1.23 0.63 0.32 22.53

1980 11.22 7.94 9.01 1.03 1.12 0.77 0.30 31.411981 12.51 8.91 9.31 1.11 1.32 0.98 0.24 34.381982 12.56 7.64 9.10 1.00 0.81 1.02 0.21 32.321983 13.36 8.62 10.08 1.17 1.00 1.04 0.38 35.641984 13.55 9.76 11.08 1.71 1.00 1.27 0.54 38.85

1985 13.25 9.38 10.21 1.46 0.91 1.09 0.41 36.681986 14.22 11.23 10.54 1.37 1.10 1.33 0.40 40.151987 15.21 11.86 11.10 1.67 1.06 1.31 0.44 42.601988 15.69 13.15 12.56 1.81 1.16 1.14 0.39 45.851989 17.16 14.54 13.12 2.55 1.28 1.3 0.41 50.36

1990 18.45 16.1 14.18 1.72 1.42 1.29 0.29 53.451991 15.97 15.57 14.55 2.31 1.39 1.22 0.30 51.311992 19.23 16.97 15.81 1.94 1.43 1.42 0.15 56.941993 19.62 18.34 16.16 2.06 1.75 1.46 0.21 59.601994 19.75 19.40 18.57 2.16 1.76 1.68 0.24 63.56

1995 18.4 18.0 17.6 2.1 1.7 1.6 0.8 60.21996 18.5 18.0 17.6 2.1 1.7 1.6 0.8 60.31997 19.0 18.5 18.5 2.2 1.8 1.7 0.8 62.51998 20.9 19.3 20.3 2.2 1.9 1.7 1.3 67.61999 21.4 19.6 21.6 2.3 2.0 1.7 2.9 71.5 a. The net weight of synthetic organic pigments represents the weight of lakes, full-strength toners and the active

coloring portion of extended toners and flush colors. Inert materials added to extended toners to contributecertain properties or reduce cost are not included in the data. Data probably exclude food, drug and cosmeticlakes and fluorescent pigments, both of which are made from dyes and are probably reported as dye production.

b. Data for RED include some violet in 1965. Datum for RED in 1988 includes an estimated figure for unspecifiedred toner production. Datum for VIOLET in 1988 includes an estimated 0.6 thousand metric tons ofquinacridone violet production omitted from the reported figure.

c. Data for 1970 and 1980-1988 exclude lakes.

d. Data for 1965, 1970, 1975, 1981 and 1983-1992 exclude lakes.

e. Data include brown pigments and unspecified synthetic organic pigments. Prior to 1973, black pigments werenot included in the data.

f. Totals may not equal the sums of the categories because of rounding.

SOURCES: (A) CEH estimates (data for 1983 for BLUE, RED and TOTAL; data for 1988 for RED, VIOLET andTOTAL; data for 1989; and information in footnotes a and c and all data for 1995-1999).

(B) Synthetic Organic Chemicals, U.S. Production and Sales, U.S. International Trade Commission(all other data).



Historical USITC reported production may have been understated or overstated. Typical reportingproblems included individual companies not returning replies to the USITC survey, causing productionomissions, and production reported on a wet basis instead of conversion to a dry weight basis, causingproduction overstatement. The USITC discontinued its full reporting in 1995 and all reporting in 1996.

Published data from the USITC for U.S. production for most of the largest-volume organic colorpigments from 1980 to 1995 and CEH estimates thereafter are presented in the following table:

U.S. Production of Largest-Volume Organic Color Pigments(thousands of metric tons)

Di-arylideYellowAAA

(PY-12)

Phthalo-cyanine

Blue(beta)

(PB-15:3)

Lithol®

Rubine,Calcium

Salt(PR-57:1)

AlkaliBluea

(PB-19and

PB-61)


RedLake C,Barium

Salt(PR-53:1)

Lithol®

Red,Barium

Salt(PR-49:1)


Salt(PR-48:1) Totalb

Percent ofTotal

Production,All Organic

ColorPigments

1980 5.22 3.53 2.08 3.48 1.34 1.77 2.54 0.22 20.16 641981 5.28 3.84 2.47 3.59 1.66 1.95 2.65 0.27 21.71 631982 5.42 3.31 2.85 3.29 1.60 1.92 2.93 0.20 21.52 671983 6.04 4.08 3.52 3.98 1.69 2.16 2.97 0.30 24.73 691984 7.03 3.64 4.08 3.65 1.91 2.20 2.79 0.21 25.52 66

1985 6.30 4.33 3.87 3.92 1.98 2.02 2.71 0.33 25.46 691986 6.87 5.35 4.51 3.91 1.97 2.00 2.37 0.91 27.90 691987 7.34 5.93 5.39 4.64 2.00 1.71 2.58 1.02 30.59 721988 7.57 6.98 6.01 3.91 2.36 2.02 2.12 0.94 32.09 701989 8.19 8.02 7.22 5.08 2.37 1.16 1.93 1.11 35.08 70

1990 8.85 8.75 8.25 5.96 2.86 1.96 2.30 0.90 39.83 751991 9.04 8.62 7.31 na 2.96 1.39 na 0.78 30.10 561992 9.92 9.11 9.49 na 2.82 1.71 1.61 0.74 35.40 611993 10.67 9.96 9.16 na 2.85 1.39 0.96 0.59 35.58 601994 12.22 10.76 10.78 na 3.08 1.41 0.92 0.42 39.87 63

1995 12.65 11.57 10.95 na 2.26 1.42 1.12 na 39.97 701996 13.61 12.70 11.57 na na 1.36 0.91 na 40.15 691997 14.1 13.2 12.0 na na 1.4 na na 40.7 651998 15.3 13.9 12.6 na na 1.5 na na 43.3 641999 15.9 14.4 12.6 na na 1.6 na na 44.5 62


1995-1999 5.9% 5.6% 3.6% -- -- 3.0% -- -- 2.7% -- a. Data for all other blue toners in the source are estimated to be mostly for production of alkali blues.


SOURCES: (A) CEH estimates (all data for ALKALI BLUE; datum for LITHOL® RED, BARIUM SALT for 1983; data forPHTHALOCYANINE BLUE and LITHOL® RUBINE, CALCIUM SALT for 1991 and 1995; datum forDIARYLIDE YELLOW AAOT for 1992; and all data for 1996-1999).



(B) Preliminary Report on U.S. Production of Selected Synthetic Organic Chemicals, U.S. International TradeCommission (all data for RED LAKE C, BARIUM SALT and LITHOL® RED; data for BARIUM SALT for1992-1993; and data for LITHOL® RUBINE, CALCIUM SALT and DIARYLIDE YELLOW AAOT for 1993).

(C) Synthetic Organic Chemicals, U.S. Production and Sales, U.S. International Trade Commission (all other data).

U.S. production of all organic color pigments grew at an average annual rate of about 5.8% from 1996 to1999.

Consumption

Consumption of organic pigments is dependent on demand in three major end-use markets—printinginks, paints and coatings, and plastics. Inks are used primarily in publishing, advertising and packagingmaterials and growth within these markets resembles growth of the U.S. economy, with advertisingspending significantly impacted by corporate profits.* Paints and plastics are consumed largely in theautomotive and construction industries and these markets are also tied to the growth of the U.S. economyand factors such as interest rates.

Estimated consumption of organic pigments since 1980 is shown in the following table:

U.S. Consumption of Organic Color Pigmentsa


1980 25.11981 30.81982 29.71983 32.71984 40-44

1985 38.41986 41.31987 42.81988 44.31989 50.0

1990 53.91991 52.01992 52.61993 54.81994 56.4

1995 56.01996 58.11997 60.71998 63.81999 66.9

* Advertising spending tends to exaggerate cycles of corporate profitability, since companies typically slash or

eliminate advertising during downturns but renew spending as optimism returns with upturns. This wasparticularly evident in the 1990-1991 recession. The dot.com (e-commerce) explosion of advertising spendingin 1999 to early 2000 rapidly accelerated advertising and color pigment for printing demand.



U.S. Consumption of Organic Color Pigmentsa (continued)


1999-2004 2.5-3.1% a. Data represent dry weight pigment.


Consumption of all organic pigments by major end-use market is listed in the following table:

U.S. Consumption of Organic Color Pigments by End Use

1996 1999

Quantity Value Quantity Value

Thousands of Metric Tonsa

Percentof

TotalMillions of

Dollars

Percentof

TotalThousands of Metric Tonsa

Percentof

TotalMillions of

Dollars

Percentof

Total

Printing Inks 36.0-38.4 62-66 607-668 49-54 43.1 64 555 50Paints and Coatings 9.2-10.4 16-18 297-322 24-26 10.7 16 255 23Plastics, Pigmented Fibers and Rubber 7.5-9.4 13-16 198-235 16-19 9.7 15 222 20Otherb 2.8-3.3 5-6 74 6 3.4 5 78 7

Total 58.1 100% 1,238 100% 66.9 100% 1,110 100% a. Data represent dry pigment weight.

b. Includes consumption for paper, textiles and miscellaneous uses, such as crayons, markers and artist’s colors.


Consumption of organic color pigments is expected to grow from 1999 to 2004 at the following rates:

Average Annual Growth Rates for U.S. Consumption ofOrganic Color Pigments by End Use—1999-2004a

(percent)

Plastics/Rubber 3.5Printing Inks 3.0Paints and Coatings 2.0Otherb 2.0

Average for All End Uses 3.3 a. Based on consumption volumes, dry pigment weight.

b. Includes paper, textiles and miscellaneous applications.




Consumption data on end uses of selected organic pigments are presented in the following table:

U.S. Consumption of High-Volume Organic Color Pigments by Volume—1999(percent)

InksPaints andCoatings Plastics Other

BluePhthalocyanine Blue (alpha) (PB-15, 15:1, 15:2) 11 47 33 9Phthalocyanine Blue (beta) (PB-15:3) 79 4 17 --Phthalocyanine Blue (beta) (PB-15:4) 88 6 6 --Alkali Blue (PB-19, 61) 82 -- -- 18a

GreenPhthalocyanine Green (PG-7, 36) 10 58 22 10

OrangeDinitraniline Orange (PO-5) 22 78 -- --Dianisidine Orange (PO-16) 60 29 7 4

RedNaphthol Red (PR-2, 5, 17, 23) 51 49 -- --Toluidine Red (PR-3) 10 78 3 9Permanent Red 2B (PR-48, 48:2, 48:3, 48:4) 23 25 50 2Permanent Red 2B, Barium Salt (PR-48:1) 45 8 45 2Lithol® Red (PR-49, 49:1, 49:2, 49:3) 95 5 -- --Red 2G (PR-52, 52:1, 52:2) 81 19 -- --Red Lake C (PR-53, 53:1, 53:2) 69 -- 22 9Red Lake C, Barium Salt (PR-53:1) 89 -- 7 4Lithol® Rubine (PR-57, 57:1, 57:2) 93 5 2 --Rhodamine Red (PR-81) 100 -- -- --

VioletQuinacridone Red (PV-19) 3 68 25 4Carbazole Violet (PV-23) 27 25 48 --

YellowArylide Yellow (PY-1, 3, 65, 73, 74) 10 90 -- --Diarylide Yellow (PY-12, 13) 90 -- -- 10Diarylide Yellow (PY-14, 17, 83) 65-75 -- 20-30 5b

a. Includes alkali blue used in carbon paper.

b. Includes some textiles.


Projected average annual growth rates for selected large-volume organic color pigments from 1999 to2004 are as follows:

N R Kannan

U.S. Consumption of High-Volume Organic Color Pigments by Volume—1999 (percent)



Average Annual Growth Rates for U.S. Consumption ofSelected Organic Color Pigments by Volume—1999-2004a

(percent)

Phthalocyanine Blue (beta) (PB-15:3) 4Alkali Blue (PB-19 and PB-61) 1-2Phthalocyanine Green (PG-7) 1-2Lithol® Red, Barium Salt (PR-49:1) (–4)-0Red Lake C, Barium Salt (PR-53:1) (–2)-0Lithol® Rubine, Calcium Salt (PR-57:1) 4-5Diarylide Yellow AAA (PY-12) 3.5-4Diarylide Yellow AAOT (PY-14) 2-3Quinacridone Violet (PV-19) 5-7 a. Dry pigment weight.


The quinacridones, perylenes, diketo-pyrrolo-pyrroles, the arylide traffic yellow PY-75 and some organicfluorescent pigments are expected to have the highest average annual rates of growth.

Projections for the U.S. organic pigments industry are based on the assumption that the industry willgenerally follow the growth of the U.S. economy and that environmental regulations will continue tomove in their present direction (see ENVIRONMENTAL ISSUES and discussions on the individualmarkets). New findings on toxicity of inorganic or organic products and any resulting major changes inpublic attitudes toward these products will greatly affect their future growth.

In 1996, over 30% of U.S. consumption of all organic pigments was accounted for by imports and asmuch as 60% of all organic pigments domestically produced are made from imported intermediates.

Printing inks

Printing inks are the major end use for organic color pigments, accounting for more than half of their totalconsumption by volume in recent years. The most important organic colors in inks are phthalo blues,alkali blues, azo reds (including Lithol® red, Lithol® rubine, red 2G and red lake C) and diarylideyellows. Together, these pigments make up almost all of the volume of organic colorants used in inkformulations.

On a dry pigment equivalent value basis, diarylide yellows account for more than one-fourth of total U.S.sales of organic pigments (produced and imported) for inks; Lithol® reds and Lithol® rubines, red 2G andred lake C account for up to one-third; and phthalocyanine blues account for almost one-fourth.

The major printing inks by printing processes are as follows (from greatest to smallest in domesticconsumption): lithographic, flexographic and gravure. In terms of end-use markets, publications accountfor 34% by volume of all printing inks domestically consumed; packaging, 32%; newsprint, 20%;commercial, 10%; and specialty, 4%. Lithographic printing inks are used mainly in publication,commercial, newsprint and packaging markets; gravure inks are used mainly in publication andpackaging; flexographic inks are used almost entirely in packaging; and letterpress is used mainly innewsprint, packaging and publication.

N R Kannan

Printing inks

N R Kannan

lithographic, flexographic and gravure.

N R Kannan

publications account for 34% by volume of all printing inks domestically consumed; packaging, 32%; newsprint, 20%; commercial, 10%; and specialty, 4%.



The value of U.S. consumption of organic color pigments by ink process is distributed as follows:

U.S. Consumption Value of Organic Color Pigmentsby Printing Ink Application—1999

(percent)

Lithography or Offset 50Flexography 26Gravure 19Letterpress negOthera 5

Total 100% a. Includes screen, intaglio and other applications.


Major organic pigments include PB-15:3, PR-57:1 and diarylide yellows for lithographic inks; PR-49:1,PR-57:1, PB-15:3, PG-15:4 and diarylide yellows for gravure inks; and PB-15:3, PG-7, PO-5, PO-16, PR-52:1, PR-57:1 and diarylide yellows for flexographic inks.

Printing inks, as fluids or pastes, are generally a mixture of pigments dispersed in different oils, resins,organic solvents, water and chemical additives. Pigments are the essential and most expensive ingredientin nearly all printing inks, varying between 45% and 70% of the total raw material cost.* Because of thevariable conditions in U.S. printing operations, up to 80% of all ink sales are customized. In printing inks,pigments are selected to accommodate the end-use requirement. Flush color is by far the largest form inwhich organic pigments are used in inks, accounting for roughly 80% of all organic pigments consumedfor inks, followed by powders, aqueous dispersions, presscakes and concentrated chips, which are usedlike aqueous dispersions, but are more concentrated.

Phthalocyanine blues, beta form (PB-15:3 and 15:4, green shade) have several advantages for printing inkformulators. They are highly stable with excellent color and brightness. They are suitable for use in alltypes of inks. They also deliver good tinting strength per unit of cost. Preferred grades are those with themost uniform small particle size, which have the greatest cleanliness and transparency. (Transparency isrequired for inks that are used in three- and four-color printing processes.) The alpha-form phthalo blues(PB-15, 15:1 and 15:2, red shade) are suitable for flexographic and gravure inks. PB-15 cannot be used insolvent-type inks because it converts to the beta form (and hence changes color) in polar solvents, but PB-15:1 and 15:2 are specially treated to be noncrystallizing and can be used in these inks.

In the late 1980s, phthalocyanine pigments replaced inorganic Milori blue pigments in gravure printing atseveral printing houses, largely because of their greater stability and higher value (see discussion belowon trends in the ink industry). Milori blues have also been replaced by phthalo blue in publication gravureink processes, which are solvent processes. Gravure solvent processes dominate the U.S. archivalpublications sector.

Alkali blues (PB-19 and 61) are used mainly for the toning of carbon black inks, to deepen the opacity(also known as adding “jetness”) and increase the covering ability of the ink. Their advantages, hightinting strength and low price, are undercut by poor bleed resistance and lightfastness. They are usually

* In radiation-curable inks, the resins used are more expensive than the pigments typically used.

N R Kannan

Major organic pigments include PB-15:3, PR-57:1 and diarylide yellows for lithographic inks; PR-49:1, PR-57:1, PB-15:3, PG-15:4 and diarylide yellows for gravure inks; and PB-15:3, PG-7, PO-5, PO-16, PR- 52:1, PR-57:1 and diarylide yellows for flexographic inks.

N R Kannan

Alkali blues (PB-19 and 61) are used mainly for the toning of carbon black inks, to deepen the opacity



supplied as flush colors. Dry alkali blues are difficult to disperse and, therefore, flush formulations arepreferred.

Lithol® reds (PR-49) are low-cost pigments with bright, strong color and good bleed resistance. They areuseful in liquid ink formulations, particularly gravure and flexographic inks, because of their goodviscosity and ease of dispersion. They may be prepared in resinated forms, which have increasedbrightness and transparency. PR-49:1 is experiencing some replacement by PR-57:1 because, in general,Lithol® rubine has better properties for matching the colors used in interchangeable printing processes.

Lithol® rubine (PR-57) and red 2G (PR-52) pigments are available in several blue-red shades. They areattractive to ink makers because of their bright, strong colors, good prices and good physical properties.PR-57:1 is among the oldest and most important reds for oleo resinous printing inks (oil or paste inks). Itis usually sold as a product containing 20-30% by weight resinous additives. Like the Lithol® reds,Lithol® rubine and red 2G pigments can be resinated to give high tinctorial strength and glossiness and toimprove color, transparency and dispersibility. However, their fastness to soap, alkali and acid is poor.

Red lake C (PR-53) is another low-cost red pigment that is used in inks for its good color, strength andprinting qualities. In resinated form it has excellent transparency, improved brightness and cleanliness,and excellent waterfastness. The barium salt PR-53:1 is the most important for use in inks. In resinatedform, red lake C is used in gravure, letterpress, flexographic and offset inks. However, because of thechemical constitution of red lake C, its inks are not fast to soap, alkali and acid. The nonresinated form isuseful for inks requiring a more opaque colorant.

Diarylide yellows are popular with ink makers because of their bright shades and their outstanding tintingstrength. They have good printing qualities and are economical on the basis of cost per unit of tintingstrength. Although semiopaque, they can be resinated to produce transparent grades for three- and four-color printing processes. With the largest volume of all organic pigments, PY-12 is used in lithographic,letterpress and publication gravure inks. Other diarylide yellows, including PY-13, 14, 17 and 83, aremore heat-resistant and lightfast and less reactive with aromatic solvents than PY-12. Thus, they arepreferred for packaging gravure inks, as well as for all inks that require greater heat resistance andlightfastness.

Naphthols are becoming increasingly popular for use in water-based inks, because of their good fastnessqualities and because they are among the standard Pantone® colors for matching ink colors.

A small amount of fluorescent ink is produced from fluorescent organic pigments.

Between 1999 and 2004, overall consumption of organic pigments in printing inks is expected to grow atabout 3-3.5% per year. Several market developments have accelerated growth including:

● Color inks in newspapers—The growth and spread of color newspapers has stimulated organicpigment consumption. An additional trend is the shrinkage of the size of newspapers from a 54-inch width to a 50-inch width. The size shinkage will cause some existing consumption of colorpigments by newspapers to slightly decline.

● Digital printing/publishing—computer-operated personalized direct mail, targeted andpersonalized magazines and desktop publishing. In the recent past, dyes were largely used forthese ink jet printing applications. Increasingly, newly developed inks containing pigments indispersions will supplement these dye-based inks since (1) dyes are more expensive and lack the



performance qualities of pigments as they are more prone to flaking, and (2) in paper recycling,dye-based inks, such as those found in most ink jet printers today, are not easily deinked.

Estimated market growth of organic pigments by volume for each of the major types of inks for 1999 to2004 is shown in the following table:

Average Annual Growth Rates for U.S. Consumptionof Organic Color Pigments by Volume in

Printing Ink Applications—1999-2004(percent)

Gravure Inks 1Publication Gravure Inks 1Packaging Gravure Inks 1-1.5

Flexography Inks 4Lithography Inks 2.5-3Letterpress Inks (–10)Other 3 SOURCE: CEH estimates.

Over the past ten years, the trend has been toward the use of water-based inks instead of solvent-basedinks. The advantage of using water-based inks is that fewer volatile organic compounds (VOCs) areemitted, thereby enabling compliance with air pollution regulations and also reducing worker health risksassociated with VOCs. As a result, demand for flexography, which uses water-based inks, is growingfaster than for lithography. Water-based inks have been used for nearly fifty years in various flexographicprinting applications, on absorbent substrates like paper, corrugated board or cartons, to produce itemssuch as sacks, bags, plates, envelopes, boxes and cups and for screen printing of textiles. More than 50%of all packaging material (mostly from flexographic printing) in the United States is printed with water-based inks. In packaging, these inks are increasingly applied to nonabsorbent surfaces, such as polyvinylchloride and polyolefin films and aluminum foils.

With the increased use of waterborne systems on nonabsorbent substrates, research on organic pigmentsfor inks is concentrated on developing inexpensive pigment forms that can be efficiently wetted andeasily dispersed using anionic or nonionic dispersants. Use of water-based pigment dispersions is growingmore quickly than use of powders and presscakes, especially in flexography and packaging gravure. Inaddition, a small but growing market for acrylic color concentrates (in chip forms) is developing in high-quality water-based inks, such as those for printing foil substrates.

Flexography is also expected to gradually make inroads into non-heat-set web printing. In addition to itsenvironmental and safety benefits, water-based flexography is gaining market share because its printquality and color have improved, its use allows high press speeds and low paper waste, and it reducesshow-through and ink rub-off.

In light of regulatory restrictions regarding VOCs, gravure printers for packaging have shifted modestlyto water-based inks to reduce emissions and air pollution abatement investments.

Lithography is growing as a result of growth in demand for web offset printing processes and thereplacement of old letterpress equipment with lithographic equipment. Very little color is used inletterpress printing; most involves only black inks and, therefore, its share of the organic pigments marketis small and declining.



Paints and coatings

The paints and coatings industry is the second-largest U.S. market for organic pigments, accounting for16% of the total consumption volume. The most important organic pigments used in paints and coatingsare arylide and diarylide yellows, phthalo blues and greens, dinitraniline orange, naphthol reds, toluidinereds, quinacridones, perylenes, quinophthalones, isoindolines, tetrachloroisoindolinones and carbazoleviolet.

On a dry pigment equivalent value basis, arylide yellows account for at least 15% of the total U.S. sales oforganic pigments (produced and imported) in paints, high-performance red organic pigments account formore than 50%, violets account for 10-15% and phthalo blues account for over 15-20%.

The following pie chart presents the percentage of organic color pigments consumed by each of the majorsurface coating categories on the basis of value:

U.S. Consumption of Organic Colored Pigmentsin Surface Coatings by Value—1999

Automotive OEM55%Architectural

30%

Other OEM andSpecial Purpose

15%

Coatings that require the highest finished quality and, therefore, the highest-priced high-performanceorganic pigments are the automotive OEM topcoats and refinishes. Other industrialized coatings may usemid- to lower-price-range organic pigments.

In North America, the trend in autos between 1999 and 2000 has been growth of metallic silver and whiteat the expense of colors. Red and green have lost the most share to metallic silver.

Architectural coatings containing organic pigments include interior water-based flat paints, interiorsolvent-based semigloss and gloss paints and exterior water-based flat house paints.

The arylide yellows are the highest-volume organic yellows used in paint formulating. They are superiorto the inorganics in tinting strength and replace the chrome yellows where lead-free pigments arerequired. They are popular in the trade sales paint market, especially in water-based paints, where theirhigh degree of alkali resistance is important. Some arylides tend to bleed in certain solvent-based paints,but several of the more recently developed arylide pigments have improved bleed resistance, makingthem attractive to paint formulators.



Diarylides find only limited use in paints because of poor lightfastness, although they do find some use ininterior paints and in baked finishes.

Phthalocyanine pigments are used in all types of paints and coatings, including all kinds of OEM productfinishes, such as for automotive topcoats and major appliances, interior and exterior architectural coatings(especially water-based paints) and special-purpose coatings such as auto refinishing. Their primaryadvantages are their excellent color, tinting strength, chemical stability and lightfastness. Thenoncrystallizing phthalo blues are necessary in the preparation of phthalo-pigmented solvent-based paints.

Dinitraniline orange has many qualities that make it appropriate for use in the paint industry. Theseinclude low cost, clean color, good chemical resistance and lightfastness in full to medium tones. It isused in both industrial and architectural coatings, in lacquers, alkyds, enamels and emulsion paints. It issometimes blended with organic reds, as an alternative to lead-containing inorganic red colorants.

Naphthol reds are notable for their excellent chemical resistance and good durability, but are generallylimited by bleeding and poor lightfastness, with the exception of PR-170. They were formerly used tosome extent in automotive lacquer finishes (which have been largely eliminated), but have been replacedin this market by more durable organic reds such as the quinacridones and perylenes. Currently they areapplied in interior emulsion and masonry paints. Because of its high opacity and good fastness properties,PR-170 is increasingly used in full-shade applications to replace lead chrome pigments.

Toluidine reds are available in a range of semiopaque bright red shades. They are lightfast for exterioruse, but only in full strength, so they find use in trim paints and farm machinery coatings. In tints they canbe used for interior architectural coatings. They show good alkali resistance in aqueous paint systems, buttheir bleeding tendencies eliminate them from use in solvent-based paints.

Quinacridone pigments have premium qualities for the paints and coatings industry, combining excellentaesthetic properties with a high degree of durability and lightfastness. Their high cost is offset somewhatby their high tinting strength, which allows lower pigment loadings to achieve the same deep shades aswith other pigments. They are compatible with all paint formulations and so find wide application,especially in automotive finishes and in high-quality enamels. Their use has grown as replacements forheavy metal pigments in coatings, particularly in automotive OEM paints and in coil coating applications.Perylenes compete by color with quinacridones in some automotive and other high-performanceapplications. DPP pigments are growing in their range of applications and also compete for market sharewith quinacridones.

Quinacridone supply in the United States expanded in 2000 when Ciba completed construction of a newquinacridone pigment plant at Newport, Delaware. This quinacridone plant shares the site of Ciba’sDiketo Pyrrolo pigment plant, which opened in 1997.

Perylenes generally have similar premium qualities to quinacridones and can be used where greater lightfastness is required (higher UV tolerance). Perylenes compete on price with some quinacridones inseveral applications. Their use is currently concentrated in automotive coatings where the need for theirunique bright red hues for styling effects outweighs their higher cost over alternative pigments. They aretypically used in auto metallic finishes. Perylenes are used to a lesser extent in high-quality industrial andarchitectural coatings. They provide a wide latitude to the coatings formulator and are currently in tightsupply. Perylenes have excellent chemical stability, high resistance to bleeding in most solvents andexcellent lightfastness. Transparent grades, such as PR-179, are used in conjunction with metallic flake incoatings, whereas opaque versions like PR-178 are used in highly durable solid colors with bright red



shades. Perylenes and quinacridones are sometimes combined in high-performance coatings applications.High-performance 1,4-diketo-pyrrolo-pyrroles (DPP) pigments compete in several perylene markets.

Quinophthalone yellows, such as PY-138, have a clean greenish-yellow shade. They are formulated intohigh-quality coatings as a replacement for chrome yellow, because of their high opacity, goodweatherfastness and favorable rheology.

Isoindoline pigments, such as PY-139, are used in lead- and cadmium-free coatings because of their highweatherfastness, good rheological properties and high opacity. Their hues cover the color range fromreddish yellow to deep orange (PO-69 and PR-260). These pigments are typically found on school busesand heavy duty trucks and mobile equipment fleets. Consumption of these pigments will be affected byslowing capital spending.

Tetrachloroisoindolinones are premium pigments, valued in paint formulations for their transparency andoutstanding fastness. They are used in metallic and solid-shade automotive finishes, as well as industrialand architectural paints.

Dioxazine (carbazole) violet, like the quinacridones, possesses high tinting strength and excellent heatand bleed resistance. These attributes compensate for its high price. It is commonly used in blends withblue or white pigments.

Along with demand for reds, blues and greens, the demand for automobile paints with improvedcolorfastness and flow (during application) has also increased growth in phthalocyanine blue and perylenepigment consumption in paints. U.S. phthalo blue and green demand is increasingly satisfied bycompetitively priced imports from China and India.

Durability is always the most important consideration for coating suppliers to the automotive industry.The pigment industry is investing in research to find more durable pigments. New developments include anovel class of heterocyclic pigments called 1,4-diketo-pyrrolo-pyrroles (DPPs), PR-254 and PR-255,which are being imported by Ciba from Switzerland. Although they are in the medium/high expense pricetier they have claimed a major portion of the red market for plastics applications in toys and in OEMautomotive coatings where the highest brightness, cleanness and opacity are needed.

The consumption of organic color pigment blends in traffic paints has become the norm in over half of thestates of the United States, representing over 75% of the U.S. highway miles. The organic yellowpigments PY-75 and PY-65 are used in this market, replacing lead chromate yellow pigments. Thepublic’s desire to decrease exposure to lead in paints underlies the increase in organic pigmentconsumption. Fifteen years ago, total U.S. organic pigment consumption in traffic paints was only a fewmetric tons, whereas in 1999, organic pigment consumption in this market was over 2.3 thousand metrictons. The market share of organic yellows in the traffic paints market segment will continue to grow at theexpense of lead chromates.

Growth in the consumption volume of organic color pigments in surface coatings for 1999-2004 isexpected to be about 2.0% per year, with industrial paints increasing at an average annual rate of 1.5-2.0% and traffic paints at more than 5%. Among water-based paints, consumption is expected to increaseby an average annual rate of 3-4%, while consumption of solvent-based paints should continue todecrease by an average annual rate of 2%.

The surface coatings industry is relatively mature and the overall quantity of organic colorants relative toinorganics in this industry will probably not change greatly in the near future. New organics and



inorganics continue to be developed to replace lead and cadmium pigments in surface coatings because ofenvironmental and health concerns. However, most organic replacements do not have the same opacity,lightfastness and heat stability of the inorganics, limiting their utility in paints and coatings.

Plastics, pigmented fibers and rubber

An estimated 14% of total U.S. organic color pigment consumption goes into these markets, mainly forplastics and to a minor extent in rubber markets. Organic pigments, because of their generally poor heatresistance, find only limited use in these industries. However, a few organic colorants can withstand theprocessing temperatures required for making plastics and rubber and also have sufficient lightfastness andbleed resistance for the finished products. Among them are disazo condensation and diarylide yellows,phthalocyanine blues and greens, permanent red 2B, quinacridones, perylenes and tetrachloroiso-indolinones.

Phthalocyanine pigments, most of which are copper-based, can be used in many plastic and rubberproducts because of their satisfactory performance properties in both types of materials. In plastics,phthalocyanines tend to be difficult to disperse, so they are sold in predispersed forms. Phthalo pigmentsare preferred for their bright, clean, transparent shades, good lightfastness and excellent tint strength.

Metallized azos typically used in plastics include permanent red 2B (PR-48:1 and PR-48:2), lake red C(PR-53:1) and pigment scarlet (PR-60:1). In particular, the calcium and barium salts of permanent red 2Bhave found wide acceptance in plastics because of their low cost, good color strength and bleed resistanceand acceptable heat stability.

Benzimidazolones have excellent heat stability for use in engineering thermoplastics, such aspolycarbonate and ABS. In addition, benzimidazolones have good bleed and chemical resistance, withfair to good lightfastness.

Polyazo organic pigments, such as disazos, have better resistance to heat, bleeding and chemicals than themonoazos. Polyazos are particularly useful for elastomeric and thermosetting systems, where strongcuring and oxidizing agents are often used. Examples of typical polyazos used in plastics are disazocondensation pigments in yellows and reds and diarylide yellow and orange.

Quinacridones, available in orange, red and violet, are useful in plastics because of their excellent color,durability, lightfastness, tint strength and bleed resistance, but they are very costly. They can be used inmost plastics, except nylons and have limited application in polystyrenes and acrylics at lowtemperatures. Quinacridones are also used in blends with inorganic molybdate orange pigments toproduce different reds with good lightfastness at a lower cost.

The plastics industry is increasingly using quinacridones and solvent dyestuffs as replacements for theless expensive cadmium- and lead-containing inorganic pigments, particularly in response toenvironmental regulations concerning postconsumer waste, such as Coalition of Northeastern Governors(CONEG) legislation (see the “U.S. Environmental and Health Regulations Affecting Pigments” table).Quinacridone pigments are among the most satisfactory organic alternatives to the heavy metal inorganicpigments in new high-performance red plastics requiring pigments with high heat stability, such as ABS.

Perylenes are widely used in plastics, especially vinyl, polypropylene and cellulosic plastics, as well as inpigmented synthetic fibers. Their superior chemical and bake resistance makes them suitable for mostpolymer systems.



Tetrachloroisoindolinones, in yellow, orange and red, are resistant to the high processing temperaturesused in plastics manufacture and are also nonbleeding and nonmigratory in most polymer formulations.However, their high cost has limited their use to specialty plastics, such as those in automotiveapplications. They are used in thermoplastics, including ABS and polypropylene; in thermosettingplastics, especially gel coats; in synthetic fibers and monofilaments; and in vinyl plastisols.

A new addition for the plastics industry is the the family of pigments known as chromophtal diketo-pyrrolo-pyrrole (DPP). Recently launched by Ciba in commercial volumes, these pigments are heat-stableto 272-288°C and can be used in polyolefins, PVC, PS and ABS. Chromophtal DPP pigments areavailable in red shades varying from a very yellow red to a mid-red shade.

New trends developing in the plastics coloration market include granite or speckle colorants; pearlescents,sparkle or glitter pigments; marbles; and “neon” or “edge glow” types.

Organic color pigments used in a variety of plastics are summarized in the following table:

U.S. Consumption of Organic Color Pigments Used in Plasticsa

Thermoplastics

Acetal Acrylic ABS Cellulosic Nylon Polycarbonate Polyester

BlueIndanthrone Blue XPhthalocyanine Blue X X X X X X

GreenPhthalocyanine Green X X X X X

OrangeAnthanthrone OrangeDiarylide OrangeDisazo OrangeDisazo Condensation Orange X XIsoindolinone X X

RedChromophtal diketo-pyrrolo- pyrrole Red BP XPermanent Red 2B XPerylene Red X X XQuinacridone Red X X

VioletDioxazine Violet X XQuinacridone Violet X X

YellowDiarylide YellowDisazo Yellow XDisazo Condensation Yellow XFlavanthroneHansa YellowIsoindolinone X XNickel-Azo Yellow



U.S. Consumption of Organic Color Pigments Used in Plasticsa(continued)

Thermoplastics (continued)

LDPE HDPE Polypropylene Polystyrene Flexible PVC Rigid PVC

BlueIndanthrone Blue X XPhthalocyanine Blue X X X X X X

GreenPhthalocyanine Green X X X X X X

OrangeAnthanthrone OrangeDiarylide OrangeDisazo Orange X X X X XDisazo Condensation Orange X X X X XIsoindolinone X

Red Chromophtal Diketo-pyrrolo-

pyrrole Red BP X X X X X XPermanent Red 2B X X X XPerylene Red X X X XQuinacridone Red X X X X

VioletDioxazine Violet X X XQuinacridone Violet X X

YellowDiarylide Yellow X X X XDisazo Yellow X X X X X XDisazo Condensation Yellow XFlavanthrone X XHansa Yellow XIsoindolinone X X X X XNickel-Azo Yellow X X

Thermosets

Epoxy PhenolicUnsaturated

Polyester Polyurethane Silicone

BlueIndanthrone BluePhthalocyanine Blue X X X

GreenPhthalocyanine Green X X X X X

OrangeAnthanthrone Orange XDiarylide Orange XDisazo Orange XDisazo Condensation Orange XIsoindolinone X

Red Chromophtal Diketo-pyrrolo-

pyrrole Red BPPermanent Red 2BPerylene Red X XQuinacridone Red

VioletDioxazine Violet X XQuinacridone Violet



U.S. Consumption of Organic Color Pigments Used in Plasticsa(continued)

Thermosets (continued)

Epoxy PhenolicUnsaturated

Polyester Polyurethane SiliconeYellow

Diarylide Yellow XDisazo Yellow X XDisazo Condensation Yellow XFlavanthrone X XHansa Yellow XIsoindolinone X X XNickel-Azo Yellow

a. Only recommended applications for each pigment type are indicated; limited applications are not indicated.

SOURCES: (A) “Colorants,” Plastics Compounding 1988/1989 Redbook, pp. 51 and 52.

(B) CEH estimates.

The domestic market for fluorescent pigments for use in vinyl plastisols and molded plastics is valued atroughly $19 million in terms of final sales value. Typical products include detergent bottles and toys.Approximately 40% of the total fluorescent organic pigment market is plastics.

The average annual rate of growth in the volume of organic pigments consumed in the plastics industry isexpected to be about 3.5% for 1999-2004. Growth in volume for organic pigments by major market isshown in the following table:

Average Annual Growth Rates for U.S. Consumption ofOrganic Color Pigments in Plastics—1999-2004

(percent)

Automotive 4Commerciala 3.5Packaging 4Building and Construction 2 a. Includes products for both household and business uses.


No growth is foreseen for consumption of organic colorants in the rubber industry.

The continued replacement of heavy metal pigments by high-performance organic pigments, such asquinacridones and the continued substitution of plastic for metal parts in automobiles will contribute tothe healthy growth for organic pigments in automotive plastics.

The total 1999 domestic market for organic color pigments in pigmented fibers was as high as 2.0thousand metric tons, dry weight basis. Growth in this market is expected to be about 3.5% per year from1999 to 2004. The major fibers involved are nylon and polypropylene, mainly for carpeting and interiorautomotive upholstery. In pigmented fiber, the pigment is distributed throughout the fiber, rather thanbeing printed or dispersed onto the fiber or textile surface, as is the practice in traditional textile dyeingand printing (see the section on Other for further information on textile printing).



The largest of the ten or so U.S. producers/importers of organic pigments for pigmented fibers, on a valuebasis, include Ciba, with roughly 60% of the total U.S. supply; Magruder Color; and Sun Chemical.Ciba’s imported line consists largely of disazo red and yellow chromophthals.

Other

Other markets that consume small quantities of organic color pigments include paper, textiles, artist’scolors, children’s crayons, watercolors and markers, and food, drugs and cosmetics. Paper consumes anestimated 1.5 thousand metric tons per year and textiles consume roughly 1.6 thousand metric tons peryear. The other markets account for smaller quantities.

Domestic growth of organic colorants by volume in these combined markets for 1999-2004 is expected tobe 2.0%. One possible growth area is in the drug and cosmetic colorants market. However, this areaconsumes a very low volume of organic color pigments and thus would not significantly influence totalconsumption.

In terms of sales value, Bayer is the largest supplier of organic pigments to the U.S. paper industry,followed by BASF and Ciba Specialty. In the paper industry, water-insoluble organic pigments are usedas aqueous dispersions, providing high brightness, high lightfastness and bleed resistance, but with poorfiber affinity. Organic pigments used in colored paper are primarily for coatings, matte board andlaminated base paper for countertops. Total 1999 U.S. consumption of organic pigments in paper isvalued at about $20 million.

Organic pigments for textile printing are mainly naphthol red, diarylide yellow, phthalocyanine blue andgreen, carbazole violet and quinacridone. (Textile printing is considered as a separate market frompigmented fibers, which is covered in the section on Plastics, pigmented fibers and rubber.) Individualpigments typically used include PB-15, 15:1, 15:2, 15:3 and 15:4; PG-7 and 36; PO-13, 14 and 16; PR-23and 170; PV-19 and 23; and PY-13, 14, 17 and 83. One of the most significant individual pigments iscarbazole violet (PV-23), which is consumed in large amounts in textile printing. The most importantnaphthols used in textile printing do not have assigned Colour Index names, but are also consumed insizable quantities. Fastness to dry cleaning is the single most important factor in determining whichorganic pigments are suitable. Textile pigments may be applied as color-concentrate chips, which aresolids containing organic pigment held in a vehicle, such as a water-soluble acrylic resin. Other pigmentforms include dry pigment and presscakes.

Major organic pigment suppliers to the textile industry include Bayer, Clarient Galaxie Chemical, Hilton-Davis, Magruder Color, European Colour and Sun Chemical.

The use of fluorescent organic pigments is growing rapidly in textile/apparel printing (a category thatincludes silk screens), which is about a $20 million domestic market in pigment sales value.Textile/apparel printing accounts for approximately 40% of the total domestic market value forfluorescent organic pigments.

The domestic market for organic pigments in cosmetics is worth roughly $15 million. However, becausethese are mostly laked organic dyes, their reported production is included with dyes. For moreinformation, refer to the CEH marketing research report on Dyes.



Price

The following table provides U.S. reported prices and unit sales values for selected organic colorpigments:

U.S. Annual Import Unit Sales Value for Organic Color Pigments(dollars per pound)

1996 1997 1998 1999

Phthalocyanine BluePB-16 na 18.40 17.28 17.00

Phthalocyanine GreenPG-7 na 4.82 4.64 4.09PG-36 na 9.38 9.49 8.99

Monoazo OrangePO-36 na 15.62 15.11 14.93

Disazo RedPR-144 na 10.55 8.27 8.56

Anthraquinine RedPR-177 na 32.03 31.49 18.32

Perylene RedPR-179 na 32.81 27.34 29.76

Quinacridone Violeta

PV-19 43.70 13.52 8.57 14.81Dioxane Violeta

PV-23 na 19.59 19.19 16.72Diarylide Yellow

PY-12 7.56 5.59 5.26 5.42PY-13 11.38 4.86 4.87 4.44

Arylide (Hansa) YellowPY-74 na 5.59 5.26 5.42PY-75 na 4.08 4.66 3.47

a. Unit sales vales for dispersions.

SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the Census.

The price for dry quinacridone violet (PV-19) pigment was in the range of $20-$30 per pound in 1999,while dry dioxane violet (PV-23) pigment was at about $30 per pound in 1999.

Flush colors, dispersions and color chips are the most costly forms in which organic pigments are sold, interms of value per dry pigment weight equivalent, followed by powder and then presscakes; presscakesare usually the least expensive forms.

Roughly 65% of the selling price of organic pigments is for raw material costs, namely the cost ofpigment intermediates and crude pigments. Some of the raw materials used to produce organic pigmentsare exclusively foreign-made.



Trade

Historical trade data for U.S. organic color pigments are listed in the following table:

U.S. Trade in Organic Color Pigments

Importsa Exportsb

Thousands ofMetric Tons,Dry Weight

Millions ofDollars

Thousands ofMetric Tons,Dry Weight

Millions ofDollars

1965 0.15 0.8 1.90 8.0

1970 1.64 10.6 3.81 14.3

1975 2.41 18.4 5.50 25.1

1980 2.32 36.4 9.10 79.51981 4.04 49.7 7.69 80.41982 4.06 45.5 6.69 75.81983 5.53 62.4 8.48 77.51984 8.61 88.1 7.86 79.9

1985 8.75 90.3 7.09 74.01986 9.28 106.2 8.20 87.51987 11.40 92.4 11.21 120.41988 10.42 143.7 13.21 144.71989 16.39 177.1 16.78 178.5

1990 21.26 207.8 20.00 213.81991 21.84 244.2 21.06 201.11992 21.42 274.0 25.78 245.41993 16.64 259.2 na na1994 8.26 123.8 12.93 263.7

1995 9.07 165.2 13.29 235.01996 9.44 171.6 11.60 287.01997 10.48 184.4 12.3 278.51998 11.62 185.4 15.4 309.51999 13.07 197.9 17.7 328.0 a. Until 1977, data were reported in the sources as “Color Lakes and Toners Made from

Alizarin and Indigo.” From 1978 to 1980, data were reported as “Color Lakes andToners” of various specified colors. After 1980, data were no longer broken down bycolors or chemical types. Dry weight data for 1989 through 1992 may not be comparableto other years, as it may be overstated 25% to 40%.

b. Reported data for concentrated dispersions from 1980 to 1988 and 1994-1999 areestimated to contain approximately 40% dry pigment by weight; this factor was used toobtain the data on a dry weight basis. Dry weight data for 1989 through 1992 may not becomparable to other years, as it may be overstated 25% to 40%.

SOURCES: (A) U.S. Imports, U.S. Department of Commerce, Bureau of the Census (datafor IMPORTS).

(B) CEH estimates based on U.S. Exports, U.S. Department of Commerce,Bureau of the Census (data for EXPORTS).



Imports

Reported imports of organic color pigments by major country of origin in 1999 were as follows:

U.S. Imports of Organic Color Pigments—1999

Country ofOrigin

Quantity(thousands of metric

tons, dry weight)Market Share

(percent)

China 3.7 28Germany 2.4 18India 1.3 10Other 5.7 44

Total 13.1 100% SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the Census.

In 1999, the single largest source of color pigment imports was China with a 28% market share, anincrease of over 50% from its market share in 1996. China has become the leading source of blue (PB-15:3), green (PG-7, PG-36) and red pigments (PR-57:1). The second-largest source of imports wasGermany with 18% of imports. A large portion of the imports from Germany is exported by BASF andClariant (formerly Hoechst); some is imported by Ciba Specialty for its U.S. subsidiaries. India hasemerged as the third-largest U.S. source for organic color pigments, with a concentration inphthalocyanine pigments, particularly green (PG-7). As recently as 1992, Japan, was the largest source ofcolor pigment imports with a 25% market share, but in 1999 its market share fell to only 7%. Together,BASF, Bayer, Ciba, Hoechst Celanese and Sun Chemical may hold as much as 55% of the total U.S.imports value.

Exports

Exports by major country of destination in 1999 were distributed as follows:

U.S. Exports of Organic Color Pigments—1999

Country ofDestination

Quantity(thousands of metric

tons, dry weight)Market Share

(percent)

Belgium 5.4 31Canada 3.8 21United Kingdom 3.0 17Other 5.5 31

Total 17.7 100% SOURCE: CEH estimates based on U.S. Exports, U.S. Department of

Commerce, Bureau of the Census.

In terms of export value, Sun Chemical is the largest U.S. exporter of organic pigments, followed byBayer and Ciba.



CANADA

Producing Companies

Dominion Colour Corporaton is Canada’s sole producer of orange, red and yellow organic pigments; thelargest-volume organic color pigments produced at its Ajax, Ontario plant include

Diarylide Yellow PY-12, PY-13, PY-14Lithol® Rubine, Calcium Salt PR-57:1Monoazo Orange PO-36

Trade

The following table shows imports for Canada in recent years:

Canadian Imports of Organic Color Pigments

Quantity(thousands ofmetric tons,as is basis)

Value(millions of

Canadian dollars)

1997 12.6 152.61998 11.9 151.81999 12.7 163.9 SOURCE: Statistics Canada.

The majority of Canada’s organic pigment imports come from the United States.

Canada’s organic pigment export data are listed below.

Canadian Exports of Organic Color Pigments

Quantity(thousands ofmetric tons,as is basis)

Value(millions of

Canadian dollars)

1997 3.8 30.91998 3.3 31.61999 3.7 31.7 SOURCE: Statistics Canada.



MEXICO

Producing Companies

The following table lists the production of organic pigments by Mexico’s two producers:

Mexican Producers of Major Organic Color Pigments—March 2001


Phthalo-cyanine

Blue(PB-15)


PermanentRed 2B,

Barium Salt(PR-48:1)

Lithol®

Rubine Red(PR-57:1)

DiarylideYellow(PY-12)

DiarylideYellow(PY-13)

ArylideYellowPY-74

Bayer de México, S.A. de C.V.Lerma, Edo. de Méxicoa X X X X X

Clariant (México), S.A. de C.V.Santa Clara, Edo. de Méxicob

Ftalmex, S.A. de C.V.Monterrey, Nuevo León X

Pyosa, S.A. de C.V.Monterrey, Nuevo Leónc X X X X

a. Bayer also produces the following organic pigments in Mexico:

Monoazo Yellow PY 1, 3, 65Phthalocyanine Blue PB 15:3, 15:4Monoazo Red PR 48:1, 48:2, 49:1, 53:1, 57:1 and 112Xanthene Red PR 81Xanthene Violet PV 1Azo Green PG 8Triphenylmethane Violet PV 3

b. Clariant also produces the following organic pigments in Mexico:

Alkali Blue PB 56Pyrazolone Orange PO 13Pyrazolone Red PR 38

c. Pyosa also produces the following organic pigments in Mexico:

Monoazo Red PR 3, 48, 49, 53Monoazo Yellow PY 1, 3, 14, 17, 83




Trade

Import data are available for Mexican organic color pigments as follows:

Mexican Imports of Organic Color Pigments(thousands of metric tons)

1993 1.551994 2.061995 1.711996 na 1997 4.431998 4.581999 5.02 SOURCES: (A) Sistema de Información, Comercial de México,

Banco Nacional de Comercio (1993-1995).

(B) Secretary of Economy, Mexico (1997-1999).

In 1999, 56% of Mexico’s organic pigment imports originated in the United States.

Export data are available for Mexican organic color pigments as follows:

Mexican Exports of Organic Color Pigments(thousands of metric tons)

1993 0.181994 0.241995 0.341996 na 1997 0.731998 0.881999 1.55 SOURCES: (A) Sistema de Información, Comercial de México,

Banco Nacional de Comercio. (1993-1995).

(B) Secretary of Economy, Mexico (1997-1999).

Mexico’s organic pigment exports have risen eightfold since 1993. In 1999, 56% of Mexico’s organicpigment exports went to the United States while the next-largest destination was Germany, at nearly 17%,reflecting a shift of some of Bayer’s pigment production to Mexico.



SOUTH AMERICA

The following table lists the producers of organic pigments in South America:

South American Producers of Organic Color Pigments—March 2001


Phthalo-cyanine

Blue(PB-15)


PyrazoloneOrange (PO-13)

NaptholRed

Medium(PR-17)

MonoazoRed

(PR-245)

DiarylideYellowAAA

(PY-12)

Argentina

Anilinas Rieger S.A.Mathew-Pdo. de Pilar, Buenos Aires X

Oscar Carlos Rapp e Hijos S.R.L.Pilar, Buenos Aires X X

Brazil

Brancotex Indústrias Químicas Ltda.Barueri, São Paulo X X X X X

Cleomar Química Indústria e ComércioLtda.

Indaiatuba, São Paulo X

Venezuela

C. A. Venezolana de Pigmentosa

Valencia, Carabobo X X a. Venezolana produces an additional number of azo red and yellow pigments.


WESTERN EUROPE

In 1999, Western European consumption of organic color pigments was valued at roughly $525 million, adecline from $600 million in 1996. Despite volume growth, the market value has declined during the lastthree years because of price erosion. Though declining in output, Western Europe remains the leadingregion for organic pigments production. In 1999, Western Europe accounted for about 29% of the totalworld organic pigments production in volume terms and for at least 36% in value terms. The volumeshare is expected to continue to decline as other regions gradually become more self-sufficient in classicalpigments and as countries such as India and China increase their exports of low- to medium-tier pigments.In addition, Western European producers will, for cost reasons, continue to relocate production of theirlow- to medium-value pigments to lower-cost producing countries in Asia (particularly China and India)as well as to North and South America (particularly Mexico).

Unlike inorganic pigments, organic pigments are in the hands of only a few producers. The leadingWestern European suppliers of organic pigments are Clariant, Ciba Specialty Chemicals and BASF. Thesmaller organic pigment producers are Avencia and Bayer, followed by two foreign producers, DainipponInk (Kemisk Vaerk Køge and INTORSA) and Toyo Ink (Francolor Pigments), all internationallyoperating companies.

N R Kannan

In 1999, Western European consumption of organic color pigments was valued at roughly $525 million, a decline from $600 million in 1996.



The following table summarizes the Western European supply/demand situation for organic pigments in1999:

European Union Supply/Demandfor Organic Color Pigments—1999

(thousands of metric tons, dry weight)

Production 65.2Imports 39.0Exports 33.0Consumption 71.2 SOURCE: CEH estimates.

Producing Companies

Western European producers of organic color pigments are shown in the following table, along with thetypes of pigments they produce:

Western European Producers of Organic Color Pigments—2001

Azo Phthalocyanine

Company Red Yellow Blue Green Other

Avencia -- -- X X XBASF Aktiengesellschaft X X X X XCiba Specialty Chemicals X X X -- XClariant X X -- -- XEuropean Colour X X -- -- XFrancolor Pigments X X X -- XGebroeders Cappelle X X X -- XIntermedios Orgánicos X X -- -- XKemisk Vaerk Køge X X X -- --Société Languedocienne de Micron-Couleurs -- -- X X --Tennants Textile Colours X -- -- -- -- SOURCE: CEH estimates.

In addition to the above-listed companies, the German company, Heubach, manufactures phthalocyaninesand a range of other organic pigments at its subsidary in India.

Azo pigments

The following table shows Western European producers of azo pigments, along with capacities and typesof pigments produced:



Western European Producers of Azo Pigments—2001

RedYellow

NaphtholCompany and Plant Location Monoazo Disazo AS Pigments Red Lakes Other

Belgium

Gebroeders Cappelle nvMenen X X X X

Denmark

Sun Chemical A/SKøge X X X

France

Francolor Pigments SA(owned 100% by Toyo Ink Mfg.Co., Ltd., Japan)

Rieux X X

Germany

BASF AktiengesellschaftLudwigshafen X X X X Metal complexStuttgart-Besingheim X X

Clariant GmbHFrankfurt am Main X X X Benzimidazolones

Italy

BASF Italia SpaCesano Maderno X X

Spain

Intermedios Orgánicos,SA—INTORSA(owned 92.5% by DainichiseikaColor & Chemicals Mfg. Co., Ltd.[Japan])

Montcada i Reixac X X X X

Switzerland

Ciba Specialty Chemicals Inc.Schweizerhalle X Red disazo pigments- Cromo-

phthal®



Western European Producers of Azo Pigments—2001 (continued)

RedYellow

NaphtholCompany and Plant Location Monoazo Disazo AS Pigments Red Lakes Other

United Kingdom

Ciba Specialty Chemicals PLCPigments

Paisley X X X

European Colour (Pigments)Limited

Stockport X X Classical a 20 pigments (Eljon®,Corfast® and Cortone®)


Phthalocyanine pigments

Western European producers of phthalocyanine pigments and the pigments they produce are shown in thefollowing table:

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Western European Producers of Phthalocyanine Pigments—2001

Pigment Blue Pigment Green

Company and Plant Location (PB-15) (PB-15:1) (PB-15:2) (PB-15:3) (PB-15:4) (PB-15:6) (PG-7) (PG-36) Trade Name

Belgium

Gebroeders Cappelle nvMenen X X

Denmark

Kemisk Vaerk Køge A/SKøge X X X X X Isophthal

France

Cappelle Frères, SARLHalluin X X

Francolor Pigments SA(owned 100% by Toyo Ink Mfg. Co.,Ltd. [Japan])

Villers-Saint-Paul X X X X X X

Société Languedociene deMicron-Couleurs SA—SLMC(owned 100% by Total)

Narbonne X X X X

Germany

BASF AktiengesellschaftFine Chemicals Department

Köln X X X X X X Helioecht

Italy

BASF Italia SpaCesano Maderno X X

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Western European Producers of Phthalocyanine Pigments—2001 (continued)

Pigment Blue Pigment Green

Company and Plant Location (PB-15) (PB-15:1) (PB-15:2) (PB-15:3) (PB-15:4) (PB-15:6) (PG-7) (PG-36) Trade Name

United Kingdom

Avencia Limiteda

Grangemouth X Monastral; PG-7is main pigment

Ciba Specialty Chemicals PLCPigments

Paisley X X X X Irgalith a. Previously owned by Zeneca Limited (United Kingdom).




Other organic pigments

The following table shows Western European producers of other organic pigments along with types ofpigments produced:

Western European Producers of Other Organic Pigments


Anthra-quinonoide Dioxazine

Perinone/Perylene

Quina-cridone Thioindigo

Triphenyl-methane

Belgium

Gebroeders Cappelle nvMenen Xa

France

Clariant Huningue S.A.Huningue X X

Germany

BASF AktiengesellschaftLudwigshafenb X X X

Ciba Spezialitätenchemie GrenzachGmbH

Grenzach-Wyhlenc X

Clariant GmbHFrankfurt am Main X X X X X

Spain

Intermedios Orgánicos, SA—INTORSA(owned 92.5% by Dainichiseika Color& Chemicals Mfg. Co., Ltd. [Japan])

Montcada i Reixac X

Switzerland

Ciba Specialty Chemicals Inc.Montheyd X

United Kingdom

European Colour PLCLondon X

a. Blue and violet.

b. Also produces quinophthalone at this location.

c. Also produces specialty grades of diketo-pyrrolo-pyrrol-(DPP) at this location.

d. Also produces standard grades of diketo-pyrrolo-pyrrol-(DPP) and isoindolinone yellow at this location.




Production

The following tables summarize 1999 Western European production of organic pigments by type andcolor.

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Western European Production of Organic Color Pigments by Type and Color—1999a

(thousands of metric tons, dry weight)

Yellow Orange Red Violet Blue GreenBrown/Black

TotalVolume

Produced Major Pigments Produced

Azo PigmentsMonoazo 4.0 0.1 -- -- -- -- -- 4.1 PY-1, 65, 74, 111, 168Disazo 9.0 0.5 0.5 -- -- -- -- 10.0 PY-12, 13, 14, 83; PO-16beta-Naphthol -- 0.5 1.0 -- -- -- -- 1.5 PO-5; PR-1, 3, 4Naphthol AS -- 0.3 4 0.2 neg -- neg 4.5 PO-22, 38; PR-2, 22, 23, 31Red Lakes -- 0.4 12.0 -- -- -- 0.1 12.5 PY-17, 46; PR-48:1, 48:2, 49:1, 49:2, 52:1, 53:1, 57:1Benzimidazolone 0.6 0.6 0.6 0.1 -- -- 0.1 2.0 PY-180; PO-36; PR-185Disazo Condensation 0.4 0.1 0.8 -- -- -- 0.2 1.5 PY-128; PR-144, 166, 242Metal Complex 0.3 0.1 neg -- -- neg -- 0.4 PY-150; PO-59, 68; PR-257

Isoindoline/one 0.3 0.1 neg -- -- -- neg 0.4 PO-61, 69; PR-260

Polycyclic PigmentsAnthraquinoideb 0.1 neg 0.4 0.1 0.3 -- -- 0.9 PY-24, 108, 147; PO-51; PR-83, 168, 177; PV-5:1; PB-60Diketo-pyrrolo-pyrrole -- -- 0.5 -- -- -- -- 0.5 PR-254, 255Dioxazine -- -- -- 0.4 -- -- -- 0.4 PV-23, 37Perinone and Perylene -- neg 0.3 neg -- -- neg 0.3 PO-43; PR-149, 224Phthalocyanine Pigments

Blues -- -- -- -- 13.7 -- -- 13.7 PB-15:1, 15:3, 15:4Greens -- -- -- -- -- 4.5 -- 4.5 PG-7, 36

Quinacridone -- neg 0.2 0.4 -- -- -- 0.6 PV-19; PR-122, 209Quinophthalone 0.1 -- -- -- -- -- -- 0.1 PY-138Thioindigo -- -- 0.3 -- -- -- -- 0.3 PR-181

Triarylmethanes -- -- 0.5 0.7 3.9 0.1 -- 5.2 PR-81; PV-3; PB-19

Other 0.2 0.2 0.5 na 0.3 0.1 0.5 1.8 PBk-1; other

Total 15.0 2.9 21.6 1.9 18.2 4.7 0.9 65.2 a. Color definition according to the Colour Index.

b. Anthraquinone, anthanthrone, anthrapyrimidine, flavanthrone, indanthrone, isoviolanthrone and pyranthrone pigments.




Western European production of phthalocyanine pigments fell with significant import competition,primarily from China followed by India. Most Western European producers have tried to develop new,higher value-added grades and forms of phthalocyanine pigments (e.g., granules and highly micronizedtypes) in order to gain a competitive advantage.

Western European production of organic pigments is expected to continue decline over the next few yearsbecause of:

● Continuing migration of the lower-tier pigment production to lower-cost countries outside ofWestern Europe

● Increasing capability for finishing imported crude pigments

Consumption

It is estimated that Western Europe consumed some 71 thousand metric tons of organic pigments (dryweight basis) in 1999. The following table gives an estimate of Western European consumption bypigment type:

Western European Consumption of OrganicColor Pigments by Pigment Type—1999(thousands of metric tons, dry weight)

Azo Pigments 46.2

Polycyclic PigmentsPhthalocyanine Pigments

Blues 14.6Greens 3.4

Triarylmethanes 3.9Quinacridones 0.6Anthraquinones 0.4Diketo-Pyrrolo-Pyrroles 0.4Perinone/Perylene 0.2Thioindigo 0.2Dioxazine 0.2

Other 1.1


The largest market segment is printing inks, which accounted for about 45% of total organic colorpigments consumption in volume terms in 1999. The second-largest segment is paints and coatings withabout 30% market share. With about 14% of total consumption, the plastics and rubber segment is thethird-largest segment. Smaller volumes are consumed in pigmented fibers, textile printing and in papercoloration.

In volume terms, it is expected that the printing inks market will be growing fastest during the next fiveyears. In value terms, however, the plastics and rubber segment will be the most promising.

N R Kannan

The largest market segment is printing inks, which accounted for about 45% of total organic color pigments consumption in volume terms in 1999. The second-largest segment is paints and coatings with about 30% market share. With about 14% of total consumption, the plastics and rubber segment is the third-largest segment. Smaller volumes are consumed in pigmented fibers, textile printing and in paper coloration.



The following table gives a breakdown of organic pigment applications in Western Europe, together withvolume growth projections:

Western European Consumption of Organic Color Pigments(thousands of metric tons, dry weight)

1993 1996 1999 2004

Average AnnualGrowth Rate,

1999-2004(percent)

Printing Inks 25.6 28.0 32.0 37.1 3.0Paints and Coatings 16.9 18.6 20.3 21.5 1.2Plastics and Rubber 7.9 8.9 10.2 11.0 1.5Pigmented Fibers 2.5 3.5 4.1 4.5 1.9Other

Textiles 2.2 2.4 2.5 2.6 0.8Paper 0.7 0.7 0.8 0.8 0Miscellaneous 1.1 1.2 1.3 1.4 1.5

Total 56.9 63.3 71.2 78.9 2.1% SOURCE: CEH estimates.

The following table gives a consumption breakdown by application for phthalocyanine pigments:

Western European Consumption of PhthalocyaninePigments by Application—1999


Printing Inks 7.9Paints and Coatings 3.8Plastics and Rubber 3.5Textile Printing 1.2Pigmented Fibers 0.8Other 0.8


Printing inks

In Western Europe, printing inks are the largest application for organic pigments in volume terms. It isestimated that printing inks contain about 15-20% pigments, the rest being resins, solvents and additives.In 1999, the average organic pigment content in printing ink formulations was about 19%. The types ofpigments consumed are mostly low-cost pigments, but also include high-performance pigments.

In Western Europe, the production of printing inks has significantly increased over the last decade. Thefollowing table lists production since 1984:

N R Kannan

Western European Consumption of Organic Color Pigments (thousands of metric tons, dry weight)



Western European Production of Printing Inks(thousands of metric tons)

1984 460

1985 4751986 4751987 4781988 5221989 549

1990 5761991 6391992 6891993 6901994 770

1995 7951996 8101997 9351998 1,058 SOURCE: CEH estimates based on data from CEPE,

European Confederation of Paint, Printing Inksand Artists Colour Manufacturers Associations.

The future of the Western European printing ink industry is promising, especially when considering therapidly increasing export potential to Eastern Europe and Asia. This, coupled with the growing trendtoward more color printing in journals and newspapers will generally cause growth in organic pigmentsconsumption. However, the cyclicity of advertising spending will amplify growth above or below GDP,depending on the growth or shrinkage of advertising budgets. Overall growth is expected to continue forthe next five to ten years, leading to strong consumption growth averaging 4% per year.

Four organic color pigment producers, have captive demand for printing inks:

BASF AktiengesellschaftKemisk Vaerk Køge (through Sun Chemical/Danippon Ink and Chemicals)Intermedios Orgánicos—INTORSA (through Dainichiseika Color & Chemicals)Francolor Pigments SA (through Toyo Ink)

In spite of the increasing competition and globalization of the printing industry, the number of printingink producers has remained relatively constant. Also the trend toward downstream integration by pigmentproducers has come to a halt, as the larger companies began to concentrate more on their core businessactivities.

Further changes in the printing ink industry have affected pigment production. Ink producers aregradually switching to flushed pigments from dry pigments, as flushed pigments are easier to handle,resulting in lower ink production costs. The fast expansion of the water-based flexographic ink market forpackaging applications in Western Europe also affects the types of pigments used. These inks demandthat the pigments have special granular characteristics and surface properties to enhance dispersabilityand compatibility. The development of such pigments is ongoing.



Color organic pigments, in general, have a greater choice of brilliant colors than inorganic pigments.Yellows consist mainly of diarylide yellows and yellow lakes; Hansa yellow is used to some extent whenextreme lightfastness is required. In order to avoid the use of lead compounds, these organic pigments arebeing used more and more as replacements for the inorganic chrome yellows. Reds consist of the Lithol®

reds, para reds, toluidines, rhodamine reds, lake red C and also eosine lakes. Blues consist of peacockblue (PB-24), phthalocyanine blues, Victoria blue and alkali blues. A wide range of other color pigmentsare also available for use in printing inks.

Paints and coatings

Western Europe is the world’s leading region for paints and coatings production, accounting for about25% of total world production. Although the bulk of pigments used are inorganic, the use of organicpigments is substantial and increasing.

Since 1985, the consumption of organic pigments in paints and coatings has been higher than the growthrate of paints and coatings production, because of substitution of inorganic pigments such as leadchromate and cadmium. It is expected that this substitution trend is maturing.

By far the largest organic pigment–consuming country for paints and coatings is Germany, accounting foralmost 30% of total Western European consumption.

Plastics and rubber

The third-largest application of organic pigments in volume terms is for plastics and rubber. Organicpigments are used in practically all types of plastics and rubber. The primary plastics pigmented are PVC,polyolefins, polystyrene, acrylics, nylon, polycarbonate and polyester, as well as cellulosics.

The use of organic pigments has grown more or less in line with total plastics consumption. As in otherapplications, the demand for organic pigments has benefited from substitution of toxic inorganicpigments. New inorganic pigments, such as bismuth vanadate and rare earth sulfides, are, however,increasingly used and may limit the penetration of organic pigments.

As in to the printing ink industry, a concentration of the plastic masterbatch producers is in progress. Inaddition, organic pigments producers are tending toward downstream integration into polyolefin colorconcentrate (masterbatch) production.

Pigmented fibers

Basically three different methods give color to fibers and textiles: dyeing (with dyestuffs), printing (witheither dyestuffs or pigments) and spin dyeing (primarily with pigments but also dyestuffs, i.e., solventdyes).

Polyolefin fibers are difficult to color with the currently available textile dyestuffs, so most polyolefinfibers are pigmented. There are only a few exceptions where dyestuffs can be used in coloring polyolefinfibers , such as dyeable nickel-modified polypropylene fibers.



Spin dyeing has certain advantages over the conventional dyeing technique. One of the major advantagesis the availability of pigments with significantly superior light- and weatherfastness, which in most casescannot be matched with conventional textile dyestuffs. A further advantage is the fact that in spin dyeingthe color is added to the polymer prior to extrusion without creating wastewater. In the wet and dryspinning process, solvents are used that can be recovered with virtually no loss.

During the last few years, spin dyeing of chemical fibers has become more popular, primarily because oftechnological advances in producing esthetic, low-priced polypropylene fiber carpets and rugs. Inparticular, the use of pigments for spin-dyed polyolefin fiber–based carpets and rugs has grownsignificantly, by more than 10% per year between the mid-1980s and mid-1990s.

Organic pigments are used in practically all chemical fibers, but it is estimated that polypropylene fibersaccount for about 70% of all spin-dyed fibers produced in Western Europe. The next most-importantfibers that are spin dyed are, in decreasing order, acrylic, polyester, polyamide and polyethylene fibers.

Shown in the table below are the type of synthetic fibers that are pigmented, together with an estimate ofcolor pigments consumed.

Western European Consumption of Spin-DyedSynthetic Fibers and Color Pigments—1999


Nondyeable Fibersa

Polyolefin Fibers 20.2

Dyeable FibersAcrylic Fibers 0.7Polyester Fibers 0.6Modacrylic Fibers 0.2Polyamide Fibers 0.1Viscose Fibers na

Total 21.8

Inorganic Pigments 17.7Organic Pigments 4.1

a. Through conventional textile dyeing processes.


Probably one of the most widely used organic pigments in spin dyeing is phthalocyanine green, requiredfor the manufacture of outdoor grass-type carpets.

From an environmental point of view, the spin-dyeing technique has considerable advantages over theconventional dyeing technique. However, spin dyeing is only possible for chemical fibers and only for alimited number of final fiber applications. Hence, pigments will not be used extensively as dye substitutesgiven the current product range. There is, however, a certain substitution possibility in textile printing.For further information, see the Textile printing section.

The selection of the pigments consumed depends largely on the cost of the pigment as well as the heatstability (primarily for those fibers that are melt spun, such as polyolefin fibers) and dispersibility of the



pigment. The cost for suitable pigments is generally higher than that for dyestuffs. In addition, therequired unit consumption per ton of fiber spin dyed is about 1.5 times higher than when dyeing withtextile dyestuffs. Hence, from the cost point of view, inorganic pigments have considerable advantagesover organic pigments in this particular application.

Textile printing

Although textile dyestuffs are by far the largest type of colorants used to color textiles, the use ofpigments in textile printing has increased. The textile printing boom in the last twenty years has beencharacterized by increased productivity, improved quality and the introduction of environmentallyfriendlier printing processes.

It is estimated that in 1999, Western Europe consumed about 1.2 thousand metric tons of organic colorpigments for textile printing.

Pigments for paper

In Western Europe, organic pigments are used by the paper industry in the form of aqueous dispersions.They provide improved high brightness, high lightfastness and bleed resistance, but have poor fiberaffinity. They are used primarily for coatings, matted boards and laminated base paper for countertops.

The major suppliers of organic pigments in Western Europe and their typical brand names are shown inthe following table:

Western European Suppliers of OrganicColor Pigments for Paper—1999

Trade Name

Aveinca MonastralMonolite

BASF PigmosolBasoflex

Bayer LevanylHeliocet

Ciba Irgalith

Clariant Flexonyl Hydroplast SOURCE: CEH estimates.

Other

Organic pigments are used in a number of smaller applications. Some uses include coloring wood, officeproducts, accessories, artist colors and drawing materials and cosmetics (including soaps). Although thevolumes consumed in these applications are small, the value of some of these specialty markets isappreciable. A relatively new application of pigments is in the manufacture of digital printing and ink jets.Although color ink jets are manufactured primarily with dyestuffs, efforts have also been made to use



pigments. The use of pigments in this application provides the advantage of increased light- andwaterfastness. The main disadvantage is that pigments are solid and tend to clog up the jet orifices.

Price

Historically, prices for organic pigments have differed substantially from country to country, but pricesare becoming homogeneous throughout the region because of the growing awareness of internationalprice levels.

For commodity-type azo pigments prices have decreased substantially since 1992, with price declinesaccelerating from 1997 to 1999. Particularly for the large-volume products, such as PY-13 and PR-57:1,prices declined up to 20% during 1992-1996. One of the main reasons for this general price decline is theglobal overcapacity and the increasing supply from low-cost producers in Asia. All of the large, globalproducers source increasing volumes of commodity-type pigments from their overseas subsidiaries.

The average Western European import value for organic colored pigments and preparations was (8.21euros per kilogram in 1999, versus (10.06 euros per kilogram in 1997. During this same period WesternEuropean organic pigment imports rose by over 25%.

Imports

In 1999, the European Union imported 63 thousand metric tons of organic pigments and pigmentpreparations on an as-is basis. It is estimated that this volume, calculated on a dry pigment weight basis,was about 39 thousand metric tons. In spite of the uncertainties about actual dry weight traded, it can beseen from the table below that imports of organic colored pigments into Western Europe have increasednearly eight-fold since 1988.

The dominant country of origin was the United States, followed by China, Japan and India. Imports fromthe United States have increased significantly; however, these volume increases are inflated somewhatbecause flushed pigments, which are not reported on a dry pigment weight basis, represent a large portionof the increased volume.

The following table summarizes the European imports of organic pigments for selected years by countryof origin:

European Community Imports of Organic Colored Pigmentsa

(metric tons, as is)

Country ofOrigin 1988 1992 1995 1999

Import Trends1999-2004

Brazil 86 na 718 616 Moderately increasingChina 96 602 1,485 8,278 IncreasingCzech Republic 59 243 665 1,971 IncreasingIndia 779 2,408 3,176 5,396 IncreasingJapan 3,620 6,066 5,956 6,222 FlatKorea, Republic of 579 903 2,933 4,879 IncreasingUnited States 2,262 7,287 19,574 28,092 Moderately increasingOther 464 2,385 1,609 7,216 Increasing

Total 7,945 19,894 36,116 62,670



a. Import code # 3204.17.00. Includes pigments and pigment mixtures. Data do not include volumes

imported by Finland, Norway and Sweden.

SOURCE: NIMEXE, Analytical Tables of Foreign Trade: Products-Countries, Eurostat, Statistical Officeof the European Community.

The availability of low-priced organic pigments with acceptable quality, coupled with the increasedcompetition in the Western European pigment-consuming industries, have been the prime reasons forgrowing imports from Asian countries. Like the developments in dyestuff imports, commodity-typeorganic pigments imports from China, India and Korea are expected to increase further. As a result of theincreased competition, Western European producers of organic pigments will increasingly concentrate onthe most specialized, highest-value-added pigments.

Exports

Until the late 1990s, Western Europe was traditionally a net exporter of organic pigments in value andvolume. Now it is a net exporter only in value terms. The main exporting countries in terms of value areGermany and Switzerland, followed by France and the United Kingdom. In 1999, Western Europeexported approximately 40 thousand metric tons of organic pigments and pigment preparations,equivalent to about 33 thousand metric tons on a dry pigment weight basis. Overall, exports of organicpigments have increased slightly over the last few years.

Although pigments are exported throughout the world, the largest export destination by far is the UnitedStates, which in 1999 accounted for nearly 17% of total Western European exports in volume terms.

The pigments exported to the United States are primarily those products that are not manufactured by theU.S. subsidiaries of the Western European producers. Many of these products are high-value-addedpigments, such as perylenes from BASF (Germany) and diketo-pyrrolo-pyroles from Ciba (Switzerland).

Western European exports of organic colored pigments for selected years are shown in the followingtable:

Western European Exports of Organic Colored Pigmentsa

(thousands of metric tons, as is)

1988 33.51992 30.91995 26.81999 39.5 a. Exports to outside Western Europe.

SOURCE: Eurostat, Statistical Office of the EuropeanCommunity.



EASTERN EUROPE

Producing Companies

Major producers of organic pigments are listed in the following table:

Central and Eastern European Producers of Organic Colored Pigments—2001

Company and Plant Location Pigments Produced

Czech Republic

Spolek pro Chemickou a Hutní Vyrobu, a.s.Ústí nad Labem Azo pigments.

Synthesia a.s.Pardubice Azo pigments.

Phthalocyanine pigments. Capacity will be expandedto 1.2-1.5 thousand metric tons per year.

Hungary

Nicolor Rt.(joint venture between Dainichiseika Color& Chemicals [Japan] and Nitrokémia Rt.)

Füzfögyartelep Phthalocyanine pigments.

Poland

Wolskie Zaklady PrzemysluBarwnikow “Organika”

Wola Krzyszoporska Formerly about 95% of the Polish organic pigmentsproduction was produced by Organika. However, in1991, azo- and phthalocyanine pigments productionwas terminated.

Romania

ColoromCodlea Azo pigments.

Russia

Koloros AOMoscow Various organic pigments.

Krata, AO Pigment(shareholding company)

Tambov Azo pigments.

Sawolshski ChimsawodSawolshsk Phthalocyanine pigments.

Ukraine

KrasitelRubezhanskoe Phthalocyanine pigments.




Production

Hungary, followed by the Czech Republic are the main organic pigments–producing countries in theregion. One of the newer joint ventures, in Hungary, Nicolor, manufactures phthalocyanine pigments. Theplant is reportedly running at high operating rates, with the output destined primarily for export to Japan.Organic pigment production in Romania, Russia and the Ukraine has declined significantly.

Czech Republic

VCHZ Synthesia Pardubice is the main organic pigments producer in the Czech-Slovak region. Spolek atUsti nad Labem is producing a few organic pigments but total production is small.

Hungary

Hungary’s production of pigments was limited to a range of inorganic pigments until the start-up ofNicolor, a joint venture of Nitrokémia and Dainichiseika (Japan), in the 1990s. The majority of thephthalocyanine pigments produced are exported by Dainichiseika to Japan.

Commonwealth of Independent States

The organic colored pigment industry in the CIS countries is relatively small and highly concentrated andin need of considerable renovation. Production of organic pigments started in the 1950s and peaked in1985. The following table presents historical production data for organic pigments:

Former USSR Production of Organic Colored Pigmentsa

(thousands of metric tons, dry weight basis)

1965 3.4

1970 5.4

1975 7.4

1980 9.0

1985 10.81986 10.41987 10.6

1993 7.0

1996 1.0 a. Data after 1991 are for the CIS countries only, which include

Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan,Moldavia, Russia, Tajikistan, Turkmenistan, Ukraine andUzbekistan.




JAPAN

Producing Companies

The major producers of organic colored pigments are listed in the following table:

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Major Japanese Producers of Selected Organic Colored Pigments—2000a

Insoluble Azo Soluble Azo

Monoazo Permanent Brilliant Lake Red Phthalocyanine(non- Disazo Toluidine Naphthol (Watching) Carmine (beta-

Company laked) Yellow Red Red Red 6B naphthol) Blue Green Others

Arimoto Chemicals Co., Ltd. X X X X X

Clariant Japan Ltd.b X

Daido Chemical IndustryCo., Ltd.

X X Tartrazine,Rhodamine

Dainichiseika Color &Chemicals Mfg. Co., Ltd.

X X X X X X X X X Quinacridone,Anthraquinone

Dainippon Ink andChemicals, Inc.

X X X X X X X X X Quinacridone,Anthraquinone,Benzimidazolone

Fuji Pigment Co., Ltd. X X X X X Anthraquinone

Kikuchi Color & ChemicalsCorp.

X

Kiwa Chemical Industry Co.,Ltd.

X X X

Noma Chemical Industry &Co., Ltd.

X X X X Aniline black

Sansui Color Co., Ltd. X X X X X

Sanyo Color Works, Ltd. X X X X X X Dioxazine

Sumika Color Co., Ltd. X X X

Tokyo Sikizai Industry Co.,Ltd.

X X X X X

Toyo Ink Mfg. Co., Ltd. X X X X X Anthraquinone a. Most of the companies produce color formulations or inks from the pigments produced.

b. Hoechst Japan’s (formerly Hoechst Mitsubishi Kasei Co., Ltd.) pigment business was acquired by Clariant (Japan) K.K. on July 1, 1997.

SOURCE: CEH estimates based on the Directory of Chemical Producers, SRI Consulting.



Dainichiseika, Dainippon Ink and Chemicals (DIC) and Toyo Ink are the top three organic pigmentmanufacturers in Japan. Those companies have significant quantities of captive consumption to producedownstream products such as inks and colored concentrates. DIC has expanded its share in the automotivebasecoat market, having bought out Tosoh’s quinacridone business unit in 1993. Three major inkproducers, DIC, Toyo Ink and Sakata Inx, consume significant quantities of pigments in ink. DIC andToyo Ink also consume pigments in plastics, color concentrates and can coatings. Dainichiseika consumesmore pigments in plastics and color concentrates than in inks. The major two coating companies, KansaiPaint and Nippon Paint, also consume significant quantities of pigments in automobile OEM and othercoatings.

DIC produces phthalocyanine blue crude and pigments at its Kashima plant. DIC’s subsidiary, SunChemical in the United States and Denmark, also produce organic pigments. DIC has a joint venture inIndia (29% ownership), Sudarsham Chemicals. The pigment production of Toyo Ink includesphthalocyanine pigment production at Toyo Kasei Kogyo at the plant site of Kawasaki Kasei (Toyo Inkand Kawasaki Kasei each having 50% ownership) where the phthalocyanine crude is produced. Toyo Inkalso established a joint venture, Phthalomex in Mexico, with Pyosa in January 1997 to producephthalocyanine blue and green. This plant was expected to have an annual capacity of 1.85 thousandmetric tons by the year 2000. Toyo Ink also has a joint venture, Tianjin Toyo Ink Co., Ltd., in Tianjin,China, with a facility integrated from pigments to printing ink, producing phthalocyanine blue crude.Francolor Pigments S.A. in France is also owned by Toyo Ink and one of its plants at Oissel producesquinacridone pigment. Dainichiseika has a pigment production joint venture, Nicolor Co.,Ltd., inHungary. DIC, Dainichiseika and Toyo Ink have been importing and exporting pigments, crude, and/orsurface treated pigment (treated by resin and dispersants, color chip or master batch) each with affiliatedcompanies from outside Japan.

Fuji Color has its strength in red pigments. Kiwa Chemical consumes pigments in fibers and textiles.Sansui Color has a variety of insoluble azo pigments. Kikuchi Color, which is the leading producer ofchrome pigments, recently started organic pigments production. Nippon Pigment has reportedly ceased itsproduction of pigments.

Concerning imports, Chiba Specialty Chemicals participates in the market by importing specialtypigments, such as diketo-pyrrolo-pyrrole (DPP) and anthraqinone (A2B). Clariant (Japan) ceased mostpigment production at its Shizuoka site except for a diarylide pigment (PY-83) in Japan and mainlyimports of the specialty pigments, such as benzimidazolone, dimethylquinacridone and isoindolinone,from plants in Europe. Bayer and BASF participate in the import market by supplying perylene.

Production

Historical data on production of organic colored pigments are shown in the following table:



Japanese Production of Organic Colored Pigments(thousands of metric tons)

Azo

Soluble Insoluble Phthalocyanine Lakes Othera Total

1975 6.55 7.25 0.64 0.6 15.04

1980 10.31 9.77 0.91 0.52 21.51

1985 6.38 5.00 12.20 0.29 0.43 24.30

1988 7.63 5.38 11.73 0.32 0.61 25.681989 7.87 5.51 12.17 0.79 0.75 27.10

1990 8.26 5.82 12.24 0.76 0.83 27.911991 8.43 6.71 12.46 0.73 0.81 29.131992 8.34 6.71 12.93 0.64 0.80 29.411993 9.23 6.95 12.89 0.61 0.78 30.451994 9.56 7.29 13.14 0.29 0.76 31.04

1995 9.84 7.32 13.36 0.31 0.72 31.551996 9.77 7.63 13.32 0.30 0.54 31.561997 10.48 8.07 14.12 0.30 0.73 33.701998 10.08 7.86 14.25 0.26 0.62 33.071999 10.60 8.54 14.33 0.25 0.65 34.37

2000 11 9 15 0.2 0.8 36

2005 12 10 16.5 0.3 1 39.8


2000-2005 1.8% 2.1% 1.9% 8.4% 4.6% 2.0% a. Includes production of high-performance organic pigments such as quinacridones and

imidazolones.

SOURCES: (A) Japan Dyestuff & Chemical Industry Association.

(B) CEH estimates (estimate for 2005).

Japanese production of organic pigments has been increasing steadily since 1987 and is estimated to reach36 thousand metric tons in 2000. The average annual growth rate for the 1994-1999 period wasapproximately 2% and the 5% growth between 1999 and 2000, resulted from a significant increase ofoffset ink shipments. Although the pigment demand in ink is expected to increase 2.3% annually, as aresult of continuing competition with imported products, production of organic colored pigments isexpected to increase 2% through the year 2005.



Production by selected organic colored pigments in selected years are broken down as follows:

Japanese Production of Major Organic Colored Pigments(thousands of metric tons)

Soluble Azo Type

1987 1990 1992 1996 1999 Major Application

Brilliant Carmine 6B (PR 57:1) 2.93 4.10 4.34 5.67 7.02 Basic magenta color for off-set inkRed Lake C (PR 53:1) 1.97 2.00 1.79 1.76 1.45 Advertising in newspaper (inexpensive)

Permanent Red 2B (PR 48:1,48:2, 48:3)

1.61 1.74 1.74 1.86 1.74 Basic magenta color for gravure ink, paint,plastic, rubber

(Insoluble Azo type)

Insoluble Azo Type


Disazo Yellow (PY 12,13,14) 3.92 4.56 4.97 5.75 6.78 Basic yellow color for off-set / gravure ink

Phthalocyanine Type


Phthalocyanine Bluea 9.38 10.02 10.73 11.14 12.38 Basic blue color for off-set/gravure ink,paint, plastic

Phthalocyanine Greena 2.37 2.22 2.06 2.18 1.88 Green color for off-set/gravure ink, paint,plastic

a. Excludes crude cakes.

SOURCES: (A) Japan Dyestuff & Chemical Industry Association.

(B) CEH estimates.

As a result of the continuous increase of ink shipments, production of each organic pigment has shownhealthy growth in recent years, excepting Red Lake C and phthalocyanine green. Red Lake C is used forred color ink in advertising (generally local supermarket advertising) in newspapers. But the color qualityof the pigment is considered poor, and recently major supermarkets have preferred better color quality inadvertising, such as Brilliant Carmine 6B. Although the phthalocyanine green consumption in thedomestic market is steady, production has decreased, probably the result of decreased exports.

Consumption

Consumption of organic pigments in Japan in selected years is shown in the following table:



Japanese Consumption of Organic Colored Pigments

1996 1998 1999 2000 2005

Quantity Quantity Quantity Quantity Percent Quantity

Printing Inks 17.3 18.2 19.8 20.9 70.3 25.0Paints 4.4 3.9 4.2 4.3 14.6 4.3Plastics 2.8 2.6 2.8 3.0 10 3.0Textile Dyeing

and Printing 1.0 1.0 1.0 1.0 3.4 0.7Othera 0.3 0.3 0.3 0.4 1.2 0.3Totalb 25.8 26.0 28.2 29.7 100 33.3 a. Includes drawing inks, crayons, leather and other uses.

b. Totals may not equal the sums of the columns because of rounding.


In general, moderate growth in demand for organic pigments is expected for the following reasons:

● Consumption in printing inks will grow at around 2.3% per year and this end-use market isexpected to be the only driving force for the growth of pigments in Japan. Among the inkshipments, offset ink and gravure ink on film substrate (packaging application) will be the majorgrowth area.

● Chrome pigments will continue to be replaced by organic colored pigments in plastics and surfacecoating applications. By 2005, a significant portion of yellow topcoat application for taxis willchange to organic pigments and yellow color traffic paint will be replaced by organic (mainlybenzimidazolone and possibly DPP or isoindolinone) inorganic (bismuth vanadate) hybridpigments.

● The growth of special pigments consumption in automobiles is not expected (except yellow taxitopcoats) because of low growth rates for domestic car production over the next five years.Manufacturers are trying to expand into other applications, including color filter, color toner andother coating applications.

● State-of-the-art pigment applications, such as bubble jet inks, color toner and color filters forLCDs are currently very small quantitively, but, will grow at a high rate. In these areas, the maincompetition is with dyes, and the key success of pigments are to make particle sizes smaller andincrease transparency. TFT (thin film transistor) displays are the fastest-growing application ofcolor filters for LCD, which has grown drastically in recent years, replacing CRT (cathode raytube) displays and it is believed that Toyo Ink has a strong share of phthalocyanine blue andgreen pigments, and Ciba Specialty Chemicals has the biggest share of red pigment (DPP). Forink jet applications, color printer manufacturers recently commercialized pigment type, byreplacing dyes, and according to one printer manufacturer, Seiko Epson, the color in printedpigment materials has 200 years of durable light-stability. The disadvantage of pigments in thisarea is that the pigments may clog inkjet nozzles, however, DIC developed microcapsledpigments, which prevents the clogging.



Japanese Consumption of Specialty Organic Colored Pigments(metric tons)

Major Color IndexGeneric Name 2000

2005(Expectation) Major Application

Quinacridone PV-19 (Mazenda included) 200 200 Auto OEMa, PCMb

Dimethyl Quinacridone PR-122 60-70 100-120 Color Toner, auto OEM, PCM

Anthraqinone PR-177, PY-147 50-60 60-70 Auto OEM, color filter, plastic

DPP PR-254, PR-255 30-40 40-60 Chrome pigment replacement, autoOEM, color filter

Isoindoline/one PY-139, PO-69, PY-110,PY-173, PO-61

70-80 80-90 Chrome pigment replacement, autoOEM, PCM, benzidine-freepigment

Dioxazine PV-23 40-50 50-60 Pigment resin color in textile, ink,auto OEM, industrial coating

Benzimidazolone PY-151, PY-180 120-150 250-300 Chrome pigment replacement, autoOEM, PCM, plastic, color toner

Perylene PR-179 30-40 40-50 Auto OEM a. Automobile basecoat at original equipment manufacture.

b. Precoated metal, coating is processed on metal first and then processed to fabrication. Coil coating is included in thiscategory in appliances, but PCM also includes industrial coating in larger structures (such as trains, trucks).


Among the specialty pigments, quinacridone has a sizable market share. The major end-use market forspecialty pigments is for automobile basecoats in OEM. But the recent shift of preferred colors inautomobiles by the Japanese resulted in the decrease of red-colored cars and the consumption ofquinacridone is believed to have dropped significantly from 1996 to 1999 (possibly a 30-50% drop).Instead, pigment suppliers are trying to develop markets for quinacridone in other coatings, such as intrain cabins and PCM used on vending machines. An increase of some other specialty organic pigmentsare expected, mainly because of chrome yellow replacement. In the past, most of the quinacridonepigments were imported, primarily from Europe, but now domestic production supplies the majority ofdemand. Some benzimidazolones, dimethylquinacridones, dioxazines and anthraquinones are produceddomestically, but many other specialty pigments continue to be imported from European companies.

N R Kannan

Japanese Consumption of Specialty Organic Colored Pigments (metric tons)



Price

Japanese Unit Values for Selected Inorganic Pigments

Yen per KilogramExchange Rate

Azo Lakes Phthalocyanine (yen per dollar)

1995 2,224 2,160 941996 2,192 2,156 108.81997 2,191 2,104 121.01998 1,920 2,027 130.91999 1,880 2,012 113.7 SOURCES: (A) Yearbook of Chemical Industries Statistics, Ministry of

International Trade and Industry (data for YEN PERKILOGRAM).

(B) International Financial Statistics, International Monetary Fund(data for EXCHANGE RATE).

Market prices of organic pigments have reportedly dropped in recent years, reflecting the lower prices forChinese and/or Indian imports.

Estimated prices for selected organic colored pigments in selected years are shown below.

Japanese Prices for Selected Organic Colored Pigments—2000

Yen perKilogram

Doller perKilograma

Brilliant Carmine 6B (also knownas Lithol® Rubine PR-57:1) 1,400-2,000 13.0-18.5Disazo Yellow 1,700-3,000 15.7-27.8Phthalo Blue 1,500-2,500 13.9-23.1Phthalo Green 2,500-3,000 23.1-27.8Quinacridone 6,000-8,000 55.6-74.1Red Lake C 800-1,000 7.4-9.3Violet Lake 1,140-1,160 10.6-10.7 a. Data are based on an exchange rate of ¥108 per dollar.

SOURCES: (A) CEH estimates.

(B) International Financial Statistics, InternationalMonetary Fund (information in footnote a).

Trade

Trade in organic colored pigments since 1981 is shown below.



Japanese Trade in Organic Colored Pigments(thousands of metric tons)

Toners Lakes

Imports Exports Imports Exports

1981 1.66 9.05 0.09 0.47

1985 2.45 13.09 0.07 0.42

1990 3.25 16.98 0.11 0.851991 3.70 18.40 0.05 0.861992 3.22 19.90 0.03 0.801993 2.84 19.82 0.02 0.701994 3.63 20.92 0.08 0.71

1995 5.14 19.63 0.08 0.641996 4.87 19.69 0.11 0.661997 5.42 22.48 0.07 0.421998 5.66 21.10 0.10 0.081999 4.66 18.63 0.09 0.12 SOURCE: Japan Exports & Imports, Japan Tariff Association.

The figures above include exports of phthalocyanine crude. Also, both phthalocyanine crude and varioussurface-treated pigments (treated with resin and dispersant) are included in the imports. The estimatedpure pigment imports and exports in 1999 are listed below.

Estimated Japanese Trade of Pigments(thousands of metric tons)

Import of Pigments by Country of Origin

Germany Switzerland FranceUnitedStates

UnitedKingdom Others Total

1999 0.5 0.4 0.2 0.1 0.1 neg 1.4

Export of Pigments by Destination Country

UnitedStates

HongKong/China Taiwan France Thailand Others Total

1999 1.3 1.2 0.9 0.9 0.5 2.8 7.6 SOURCE: CEH estimates.

The “other” destinations include Malaysia, the Republic of Korea, the United Kingdom, Singapore, thePhilippines and Indonesia. There is trading (both imports and exports) of pigments, both crude andsurface-treated pigments, between DIC, Dainichiseika and Toyo Ink, each with affiliated companies fromoutside Japan. Also, specialty pigments are imported by European companies, such as Ciba SpecialtyChemicals, Bayer, Clariant and BASF.



OTHER ASIAN COUNTRIES

The major producers of organic colored pigments are listed in the following table:

Major Asian Producers of Selected Organic Colored Pigments—2000

Insoluble Azo Soluble Azo

Company

Monoazo(non-laked)

DisazoYellow

ToluidineRed

NaphtholRed

Permanent(Watching)

Red

BrilliantCarmine

6B

Lake Red(beta-

naphthol)Phthalo

Blue Other

Korea, Republic of

Daihan Swiss ChemicalCo., Ltd.

X X X X X X X Pyrazolone

Songwon Color Co., Ltd. X X X X X X X X Pyrazolone,Dioxazine

Ukseung ChemicalCompany Ltd.

X X X X X X X X Pyrazolone,Rhodamine

Taiwan

Cosmos Colorants Co.,Ltd.

X X X X X

Fu Tai Chemical IndustryCo., Ltd.

Janie Color Works Ltd. X X X X

Maintop Industrial Co.,Ltd.

X

Nan Tsan Industry Co.,Ltd.

X X X X X X X X

New Hsin JungEnterprise Co., Ltd.

X X X X X

Sigma Pigments Mfg.Co., Ltd.

X X

Tah Kong Chemical Ind.Corp.

X X X X X X

Tong Kung IndustrialCorp.

X X

Well Chem Products Inc. X X X X X X X

Yih Chen ChemicalIndustry Co., Ltd.

X X X

Indonesia

Monokem Surya PT X X X X SOURCE: CEH estimates based on Directory of Chemical Producer, SRI Consulting



The table below is the estimation of salient statistics in selected Asian countries:

Salient Statistics of Organic Color Pigments in Selected Asian Countries(thousands of metric tons)

China

Production of Organic Pigments Tradein China

Pro- Pigment LakesAzo Phthalo- duction Apparent

Pigments cyaninies Lakes Other Total Consumption Import Export Import Export

1997 2.3 2.3 0.4 2 7.0 11.9 11.7 7.1 0.3 01998 2.8 2.1 0.3 2 7.2 10.5 11.7 8.7 0.3 01999 na na na na 15.0 15.0 14.4 14.8 0.4 0

Korea, Republic of

Production of Organic Pigmentsin the Republic of Korea

Trade

Pro- Apparent Pigment LakesPhthalo Phthalo duction Con-

Azo Lake Blue Green Other Total sumption Import Export Import Export

1997 2.6 1.2 2.0 0.2 1.4 7.4 5.1 1.1 3.4 0.1 0.11998 2.3 1.0 1.6 0.1 1.4 6.4 3.2 0.9 4 0 0.11999 1.0 1.4 1.6 0.2 2.4 6.5 3.6 1.4 4.4 0.2 0.2

Taiwan

Production of Organic Pigmentsin Taiwan

Trade

Pro- Apparent Pigment LakesDi- Mono- Phthalo- duction Con-azo azo cyanine Naphthol Other Total sumption Import Export Import Export

1997 na na na na na 4.5 4.6 2.1 1.9 0 0.11998 1.4 1.8 1.4 0.1 0.5 5.3 4.4 0.5 1.3 0 0.11999 1.8 1.9 1.2 0.1 0.7 5.7 4.3 0.4 1.8 0.1 0.1 SOURCES: (A) Korean Dyestuff and Pigments Industrial Association (Republic of Korea production).

(B) Taiwan Dyestuff and Pigments Industrial Association (Taiwan production).

(C) China Chemical Industry Yearbook, China National Chemical Information Center (China production).

(D) Trade data of each country.

(E) CEH estimates.

China

The major Chinese producers of organic pigments are listed in the following table:



Major Chinese Producers of Organic Colored Pigments—2001

Company Azo Phthalocyanine Lakes Other

Anhui Sanquen General Chemical Plant XBASF Colorants & Chemicals Co., Ltd.Beijing Chemical Industry Group Corp. X XChangshu Chemical & Medical Industry Bureau XChongqing Dyestuff Factory XClariant Pigments (Tianjin) Ltd. XDainippon Ink and ChemicalsMeileda Pigment Industry Co., Ltd. XNangong Qing-Alpha Chemical Co., Ltd. XNingbo Jinbao Group Co., Ltd. XQingdao Chiba Pigmentsb XQingdao Dyestuff Factory X XRuian Wanlong Chemical General Manufactory XShanghai Dyestuff Co. X X XShanghai No. 1 Dyestuff Chemical Plant X XShanghai Toyo Ink Co., Ltd. XShenyang General Fertilizer Plant XTianjin No. 2 Dyestuff Chemical Factory XTianjin No. 8 Dyestuff Chemical Plant X XTianjin Toyo Inc Co., Ltd. XWenzhou Huanan Chemical Industry Corp. XXiangtan Chemicals and Pigments Co., Ltd.b XYancheng County No. 2 Fertilizer Plant XZhejiang General Chemical Industry Corp. XZhejiang Xiaoshan Pigment Chemical Plant X XZhenjiang City Paint Factory X a. Through joint ventures.

b. Ciba Specialty Chemicals joint ventures.

SOURCE: (A) The People’s Republic of China Chemical Industry, The Scientific & TechnicalInformation Research Institute of the Ministry of Chemical Industry of the People’sRepublic of China.

(B) 2000-2001 Directory of Chemical Producers—China, SRI Consulting.

Republic of Korea

Daihan Swiss Chemical is a joint venture established by Ciba Specialty Chemicals and Daihan Color in1982, with an azo pigments production capacity of 3.5 thousand metric tons. Chiba announced scrap-andbuild operations (to scrap 1.7 thousand metric tons capacity and build up new capacity of 2 thousandmetric tons) to enhance competitiveness with the latest equipment by 2000. Clariant Chemical has amajority share of its joint venture (ownership of 51%), Songwon Color. The Republic of Korea’s organicpigment market share is almost evenly divided by three companies (these two joint ventures and UkseungChemical).

Concerning the specialty pigments, the consumption of quinacridone is estimated around 50-80 metrictons in 1999, which is supplied by Ciba Specialty Chemicals and Clariant Chemical.



Taiwan

There are several local pigments producers in Taiwan as listed in the table above. Among them, majorpigments producers are Tah Kong Chemical Industrial, Janie Color Works and Cosmos Colorants.

China

There are numerous pigments producers in China. The production statistics in 1997/1998 may beunderstated. The domestic organic pigment demand is roughly estimated at around 15 thousand metrictons in 1999.

Ciba Specialty Chemicals has two joint ventures in China, one of which, Qingdao Chiba Pigments, hasopened in Qingdao with a local company to manufacture azo pigments with 2 thousand metric tonscapacity in 1997 (its capacity will be increased to 3 thousand metric tons in the near future). Another newjoint venture, Xiangtan Chemicals and Pigments Co., Ltd., at Hunan province, constructed 200 metrictons of quinacridone capacity in 2000.

Toyo Ink has two joint ventures in China, Shanghai Toyo Ink Co., Ltd. and Tianjin Toyo Ink Co., Ltd.,with a total capacity of 4.4 thousand metric tons (this capacity will be increased to 5.6 thousand metrictons in 2003-2004).

China’s exports emphasize phthalocyanine blue (PB-15:3) and green (PG-7).

India

There are over 100 pigment producers in India. Production quantities are unknown. DIC has a jointventure, Sudarshan Chemicals Industries, which produces phthalocyanine pigments and other organicpigments, including quinacridone. Hindustan Ink and Resin is a major independent export-orientedproducer of finished inks as well as organic pigments such as PY-12, PR-57:1 and PB 15:3. India’sexports emphasize phthalocyanine green and blue; dioxazine pigments (PV-23) and other organicpigments are also exported.

APPENDIX—SPECIAL EFFECT PIGMENTS

Special effect pigments are an increasingly important group of pigments. They cause an optical effect byregular reflection or interference. These effects can include viewing angle-dependent color (differentviewing positions causing color shifting). Special effect pigments are available as white, black or coloredpigments and they are either naturally derived (inorganic and organic) or synthetic (inorganic) pigments.

Special effect pigments can be classified further into several groups:

● Metal effect pigments—regular reflection takes place on highly refractive parallel pigmentplatelets (e.g., TiO2 on mica, ultrafine aluminum particle, ultrafine bronze particle).

● Nacreous pigments (pearlescent pigments)—regular reflection takes place mainly on flat andparallel metal pigment particles (e.g., aluminum flakes).

N R Kannan

The domestic organic pigment demand is roughly estimated at around 15 thousand metric tons in 1999.



● Interference pigments—the optical effect of colored luster pigments is caused entirely or mainlyby the phenomenon of interference (e.g., iron oxide on mica).

Although fish silver (natural fish scales based on guanine and hypoxanthin) was the very firstcommercially used luster pigment, inorganic luster pigments clearly dominate the market today. From achemical point of view the commercially available nacreous pigments can be classified into the followingtype of products, in order of importance:

● Alumina–metal oxide, mica. These types of luster pigments have advanced to the mostimportant group of luster pigments, accounting for about 50% of the total world market today.Their main advantages are their favorable optical, chemical, mechanical, toxicological andenvironmental characteristics. Mica, in in the mineral form of muscovite, can be used alone or incombination with titanium dioxide, iron oxide, tin oxide and chromium oxide. The type of metaloxide and the thickness and number of metal oxide layers determines the final color of the lusterpigment. A large number of combination- and metal-color pigments can be produced. Because oftheir good chemical, thermal and mechanical stability, metal oxide–mica pigments are being usedin practically all pigment applications where a special optical effect is required. Effects producedinclude high chroma sparkle.

● Silica flake. Semitransparent effect pigments can also be produced using silica flakes coated withtitanium dioxide or ferric oxide. These pigments can create multicolor effects depending on theviewing angle.

● Basic lead carbonate. Basic lead carbonate is obtained through the reaction of lead acetate orpropionate with carbon dioxide. From an optical perspective, it is an ideal product but some of itsphysical characteristics limit its use. Basic lead carbonate has poor chemical and thermal stabilityand its high density leads to a relatively quick sedimentation in the carrier material. More criticaltoday, however, is the fact that this compound contains lead and is therefore under significantpressure from a toxicological and environmental perspective. Still, basic lead carbonate is used indeveloping countries for the manufacture of buttons and artificial pearls.

● Bismuth oxychloride. This compound was one of the very first nontoxic pearlescent pigmentsproduced. It is manufactured through the hydrolysis of the chloride ions available in an acidicbismuth salt solution. Depending on the precipitation process, a number of pigments withdifferent optical and physical characteristics can be obtained. Bismuth oxychloride lusterpigments are used primarily in cosmetic applications. Because of its relatively low lightfastness,rapid sedimentation and limited mechanical stability, other applications are rather limited.

● Natural pearlescent (natural fish silver). Fish silver is still commercially produced today. Theyield of pearl essence, obtained through solvent extraction of fish scales, depends largely on thetype of fish. Some of the fish scales used are of herring, ukelei and sardines. The pigmentconcentration in fish scale is usually less than 1% and, hence, production costs are relatively high.Fish silver is used mostly in cosmetic applications (primarily in nail enamels), where its physicaland chemical sensitivity is not critical.

● Micronized titanium dioxide. Because of the smaller size of this pigment, a pearlescent effect iscaused through interference, as opposed to the opacity caused by standard titanium dioxidepigments.



The following table lists some of the major world producers of special effect pigments:

Major World Producers of Special Effect Pigments—2001

CompanyNatural

PearlBasic LeadCarbonate

BismuthOxychloride

SilicaFlake

MetalOxide–Mica Other

TradeNames

BASF Aktiengesellschaft, Germany X Paliocrom®,Sicolux®,Variocrom®

Ecakrt-Werke, Germany Xab Litho®

PHOENIX®,Toto Flex®

Roto Safe®

Englehard, Mearl Division., United States

X X X Mearlin,Mearlite

J. Jaeger GmbH, Germany X

Kemira Oy, Finland X

Mallinckrodt, United States X

Merck KGaA, Germany X X Colorstream ,Iriodin,Xirallic

Rona, United States (subsidiary) X X

EM Industries, United States (subsidiary)

X

Merck Japan Ltd. (subsidiary) X

Pacific Chemicals, Republic of Korea X

Pearl Essence, Norway X

Poliperl S.A., Argentina X

Presperse Inc., United States X

Semo Ltd., Republic of Korea X

Silberline Manufacturing Company,United Kingdom

Xa SilBerCote®

Sparkle Silver®

Tufflake®

Sudarshan Chemical Industries Ltd., India

X

Taica, Japan X

Wacker, Germany X Helicone® liquidcrystal

Williams, United Kingdom X

Dr. Yang Chemical, Taiwan X



a. Aluminum pigments.

b. Bronze pigments.


Englehard (Mearl Division) and Merck are the leading producers.

The total world market size for special effect pigments is estimated at roughly 10 thousand metric tons.Shown in the following table are estimated world consumption figures for special effect pigments:

World Consumption of Special Effect Pigments—1999

Metric TonsConsumption

Trends

Metal Oxide–Mica, Silicon Oxide 5,000 Increasing

Natural and Synthetic (titaniumdioxide) Pearlescent

3,000 Increasing

Bismuth Oxychloride 500 StableBasic Lead Carbonate <500 DecliningOthers 1,000 Increasing

Total 10,000 SOURCE: CEH estimate.

The main applications of special effect pigments are in printing inks, paints and coatings, plastics, textileprinting and cosmetics. They are also used in adding special-effect coloring to fine paper, wallpaper anddecorative laminates.

BIBLIOGRAPHY

Chemical Economics Handbook—The following CEH marketing research reports, product reviews andindustry overview contain additional information that is pertinent to the subject of this marketing researchreport:

Carbon BlackDyesInorganic Zinc ChemicalsPaints and Coatings Industry OverviewSpecialty Inorganic FibersTitanium Dioxide Pigments

Specialty Chemicals Update Program—The following SCUP reports contain additional information onthe subject of this report. Address inquiries concerning this information to Specialty Chemicals UpdateProgram, SRI Consulting, Menlo Park, California 94025.

Cosmetic ChemicalsPrinting InksSpecialty Paper Chemicals

CEH Marketing Reports - Pigments

Documents

Transcript of CEH Marketing Reports - Pigments