Coatings World - January 2009

dented increases in raw material costs we saw in 2008 has impacted every level of the value chain for pigments. Likewise currency fluctuations have advantaged some suppliers and disadvantaged other suppliers of pigments. This has led to both consolidation and new entrants in the pigments market as suppliers try to predict the future. Pigment manufacturers that have a global footprint have the best ability to weather these dynamic conditions. The changing landscape of pigment suppliers will likely continue in 2009.

Orlowski, Clariant: The two influencing issues are volatility and availability of intermediates for pigments and the slumping global economy within the housing and automotive industries.

McBride, Heucotech: Obviously the global economy is probably the single major factor impacting the pigments market today. In terms of performance customers are looking for improved value at equivalent or lower prices based on current economical circumstances. This would include properties such as lightfastness, weathering, heat resistance, ease of dispersion and IR reflection.

Yazdani, Sun Chemical: Many of the challenges that the pigments market is currently facing began in 2007. However, the pigments market in 2007 was generally healthy. Globally the industry was impacted by the well-publicized issues that occurred in 2007 regarding products made in China, leading to concerns about product safety. The sudden and strict enforcement of environmental compliance by Chinese officials on local industry addressed most safety concerns, but led to instability in the supply chain.

Whiston, Toyo: The focus on environmentally friendly innovation will continue. Toyo Ink will further development of more environmentally friendly alternatives, such as zero-VOC dispersions. Shrinking demand, however, caused by current recessionary pressures will lead to stronger price competition for organic pigments.

CW: How are the bad economic conditions in the U.S. affecting the market and what is your company doing about it?

Chevrier, BASF: With the current economic situation, BASF believes it is even more important to remain focused on our customers’ needs. We are investing in research and development to help us develop solutions to our customers’ needs, and to produce products that are sustainable. BASF is investing in a state of the art technical service facility to respond to customer needs and be closer to the market. On a product basis, we are working to develop pigments that are more universally accepted and perform better. These new pigments are being engineered to anticipate future market needs. In 2008, for example, we developed our Sico Yellow L 1252HD to compete in a higher-performing pigment category.

Corujo, Ciba: The slowdown in demand has been particularly striking in the U.S. During these times it has been critical for Ciba to continue to focus on operational excellence, improved supply chain initiatives and commitment to investment in a strong R&D pipeline. In 2008 Ciba changed its Americas organizational structure to be even more customer focused and ensure that our customers will be successful in these difficult times. Color and effect pigments have the unique ability to enable paint manufacturers to differentiate themselves to their customers. Being a partner to our customers and ensuring their success will enable us to continue to grow together.

Orlowski, Clariant: With the two major industries—housing and automotive—being down the demand for colored pigments are drastically reduced. Clariant is offering easy dispersing (ED) pigments to reduce processing costs for our customers.

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

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

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

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