Coatings World - August 2016

High Performance Pigments Market
August 2016 www.coatingsworld.com Coatings World | 49

As supply of these pigment intermediates constricts, upward pressure on pigment prices is a possibility. Simultaneously pigment and end users are working on raw material cost reduction programs, which provides a business opportunity for HPP manufacturers if they can be competitive on the pricing of their products. Use of aluminium-based pigment will also feel the effect of a price increase, as China moves to end its policy of subsidizing smelting of this metal.

• Consumer preferences: As demand from developing world states booms, global pigment supply is having to align with consumer inclinations in these markets. In the important automotive segment, for example, there is a need to respond to the widespread preference for white vehicles, with red pigment products also forecast to increase their relative share. At the same time there will be a move away from what are regarded as harsh synthetic products to pigments that deliver softer, more natural colour effects.

• Technical innovation: The forces acting on pigment pro-
ducers is leading to investment in new technologies, including:
• Organic nano-pigments, with platforms like PPG’s
patented Andaro Tint Dispersion Technology, helping deliver
extended portfolios of colors with the dramatic face and flop
effects called for by designers and consumers. Dispersion and
milling platforms that can operate with these ultra-fine pigments
are also a necessary technical development that is now receiving
R&D funds from the likes of Buhler.

• Cooling pigments that add the capacity to reflect near infrared (IR) radiation – as well as add color – are another fast developing segment. These HPPs are principally mixed-metal oxides. They are aligning with broader trends like environmentally sustainable construction where their reflection of IR lessens heat transfer into the interior and saves on air conditioning costs.

• Pure color pigments are in greater demand, especially those that can balance transparency and high chromatic performance.

• Interest in high-performance bio-based pigments is accelerating, driven by corporate and consumer interest in minimizing environmental impacts. This is a longer-term strategic goal and is seeing pigment firms collaborating with public and private organizations that already have experience of bio-de-rived chemicals.

HPP manufacturers Coatings World interviewed reported
high rates of growth. “The market for high performance and
special effect pigments in particular is growing at the highest
rate within the pigment market,” said Jens Reininger, head of
strategic marketing, Clariant Plastics & Coatings. “Growth in
emerging countries in Asia due to lead chromate replacement
is contributing along with the growth of automotive and 3C
coatings sectors where HPP and special effect pigments have a
major use. Also having a positive impact is the current color
trend in decorative coatings which creates in the chromatic
sector a need for high performance pigments in the red, pink
and violet color indices.“
Lansco Colors reported that sales of high performance and
special effect pigments have grown with double digit increases
year over year due to its success at bringing customers high per-
formance pigments at fair prices. “Lansco Colors was the leader
in bringing alternatives to previously patent protected products
and we have grown to a market leading position for these pig-
ments,” said Frank Lavieri, executive VP an general manager,
Lansco Colors.

“While we have to recognize shrinkage in the overall pigment
market, mainly driven by the ink industry, Trust Chem is benefit-
ting from an increase on the high performance pigments side, said
Falko Orlowski – executive VP Trust Chem USA. “Manufacturers
in Asia, Europe and the Americas are fighting for market share,
which results in lower cost for high performance and effect pig-
ments. As a result, lower cost level HPPs are replacing low and
medium performance pigments for many applications.”
The market has shown some pockets of improvement dur-
ing calendar 2016. “Volumes are strong, prices have eroded in
some markets due to competition and/or currency swings,” said
Ron Levi, president, Bruchsaler Farbenfabrik GmbH & Co. KG.
Bruchsal, Germany. “Our marketing presence and sales have
grown in India and southeastern Asia as a whole. We have not
established a plant in the region, growth has been attained via
local stocks and sales organizations.”