Pigments Market Panel Discussion
For this year”s annual pigments market update, Coatings Worldaskeda panel of experts toaddress
key issues facing themarket including the economy, new technology andstrategies for moving
forward in 2009. The panel is made upof individuals from some of the world”s largest and most
diverse pigment suppliers including BASF, Ciba, Clariant, Heucotech, Sun Chemical and Toyo Ink.
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Coatings World (CW): How did the pigments market
perform in 2008? How does this compare to 2007 and
what are your predictions for 2009?
Thierry Chevrier, director of performance chemicals—coatings,
plastics and specialties—for BASF in North America: The second half of 2008 was difficult as the economic situation began
to impact consumers, especially in the automobile and housing
sectors. For 2009, pigment suppliers will have to continue to
offer value-added solutions that take into account the “total
cost” mindset of coatings producers. The ability to innovate and
bring cost-effective solutions to the industry will be the key to
success going forward.
Bernadette Corujo, director of NAFTA marketing, coatings,
Ciba Corporation: The pigments market tracks the coatings
market overall. 2008 was a difficult year for several segments of the coatings market and by extension the pigments
market. Pigment growth slowed in 2008 versus 2007 mainly
due to the slowdown in coatings demand in the fourth quarter of the year. 2009 will likely remain challenging through
the first half of the year.
Falko Orlowski, coatings business manager, North
America, Clariant Corporation: Clariant experienced the
first three quarters of 2008 flat against 2007 year. A significant downturn was seen in the fourth quarter, which
we expect to continue into 2009.
Don McBride, COO, Heucotech Ltd.: Globally, the first half of
2008 fared much better than expected despite challenges related to escalations of energy and raw material costs. Industrial
applications in the area of corrosion protection continued at the
brisk growth pace of 2007 while all markets related to the
building industry were down more than ten percent in
Southern Europe and NAFTA. This obviously had a negative
effect on pigment sales to the related decorative coatings, construction and plastic applications. Specialty areas, such as powder, coil and high performance coatings, continued to grow in
the eastern regions of the world, however at a slower pace than
the prior year. The last two months of 2008 based on the pres-
ent economic climate have affected us globally, with NAFTA
slower than other regions for 2008.
Mehran Yazdani, vice president, marketing, performance pigments, Sun Chemical: While there continues to be positive
strong trends toward the usage of high performance and effect
pigments, overall 2008 was a challenging year for the pigments market worldwide. The U.S. is currently one of the most
challenging regions of the world for the pigments market
thanks primarily to a struggling automotive market and housing slump that has led to a decline in automotive sales, home
building and therefore paint use. Similar challenges in the
automotive and architectural markets can be found in Europe
and Asia as well.
Chris Whiston, marketing manager, pigments, Toyo Ink Mfg.
America: Toyo Ink Mfg. America did not increase pigment
prices to coatings manufacturers in North America in 2008 nor
add fuel surcharges. We are watching 2009 carefully and it is
difficult to make forecasts but we believe price volatility will be
high and currency exchange rates may be important.
CW: What are the major trends and challenges
influencing the global pigments market today?
Chevrier, BASF: One of the key trends in the market is the
increasing demand for heat management solutions. BASF has
a broad portfolio of pigments and additives that provide solar
energy management solutions, including near-infrared (NIR)
reflective pigments, NIR transparent organic pigments, and
stir-in pigment dispersions and additives for transparent
applications. Another trend is the need for universal high performance pigments that are compatible in broad applications.
Corujo, Ciba: A major challenge for the pigments market
today is the continued slowdown in the economy depressing
demand for durable goods that require coatings during manufacture. The decline in the U.S. housing market also impacted
pigment demand. Additionally, in a down economy consumers
and businesses will delay non-essential expenditures like
coatings. This decreased demand in addition to the unprece-
