Metallic Pigments Market
The economic downturn has impacted the metallic pigments market due in large
part to the ailing auto industry, a major consumer of the pigments.
BY KERRY PIANOFORTE
ASSOCIATE EDITOR
As expected, due to the continued economic downturn, the metallic pigments market has experienced
a slowdown in demand. “The overall usage of metallic pigments follows the downward trend of the global economic market in 2009,” said Martha Davies, global product
manager, effect pigments, Performance Pigments, Sun
Chemical. “One of the key market segments—automotive
coatings—has been impacted particularly hard. There are
other markets, such as the DIY segment, which did not
show the same type of market volatility, however, those segments are much smaller and therefore could not offset the
overall downturn to the metallic pigments market. We
anticipate that the market will begin to stabilize during the
remainder of 2009 turning into 2010.”
The depression in sales of aluminum pigments that
began in the last quarter of 2008 also continues, according
to Andrew Edwards, global director of marketing, inks,
Silberline. “The global economic slow down is influencing
the behavior of the consumer. Uncertainty regarding job
security is generating more frugal spending habits.
“While consumer confidence remains low individuals,
families and businesses reduce their spending on anything considered a luxury such as a new car, laptop or
mobile phone,” Edwards continued. “Many of these use
aluminum pigments for functional or aesthetic effects
and the result is a lower demand for these pigments. The
automotive segment, given the volume of pigment used,
has been the most severely hit, while the graphic arts
and printing ink segment has been the most robust,
although not immune.”
“Unfortunately the negative trend of the last quarter in
2008 has continued,” agreed Hannes Loichtl of Benda-Lutz.
“The market situation remains very difficult and sales figures
of 20-40% less compared to 2008 can be found quite often. The
upcoming spring creates hope for increase in demand from
the building industry. For 2010 a stabilization of the business
on a lower level is expected.”
Despite the challenges faced by the economic downturn
there is still demand for metallic pigments. “Industrial and
automotive applications show the strongest demand for metallic pigments,” said Davies. “Emerging areas include consumer
coil coatings, architectural paint, digital ink and securities.”
According to Thierry Chevrier, director, BASF Performance
The auto industry—a key market segment for metallic pigments—has been impacted particularly hard by the economic
downturn.
Chemicals–coatings and plastic chemicals, North America,
although metallic pigments have suffered during the first
quarter of 2009, there is cause for optimism. “We are optimistic that through the U.S. government’s stimulus plan and
increased projects we will see improvement in the market by
year end, and continuing into 2010,” he said. “Today, many
brand owners recognize the need to stand out from their competition and are looking at enhancing their products via
metallic and special effect pigments in coatings, plastics and
printing packaging.
“The automotive market continues to be a major outlet for
metallic pigments and special effects, although at a decreased
level because of the global financial recession,” Chevrier continued. “To counter the decline in the automotive market, we
have been investigating other areas that still offer high growth
potential. One trend that we have identified is the work/play
life relationship. In today’s climate, where everyone is working
extremely hard under difficult conditions, it is equally important to play hard. Recreational activities utilizing sporting
goods and equipment, all-terrain vehicles and personal watercraft and other related areas are of high interest.”
“Plastics, such as electronics, cell phones and computers,
coatings, such as wheel rims and automotive and printing inks
for packaging are just a few of the more traditional outlets for
