Lanxess Announces Escalation in the Prices of Inorganic Pigments Across the Globe
- 14-Jun-2021 7:00 PM
- Journalist: Robert Hume
The prices of inorganic pigments showed a wavered trend across the globe during the year 2020. During Q1 2021, the industry witnessed a gradual increase in the overall inorganic pigments prices backed by swelling demand from various downstream sectors. This surge was majorly attributed to the pick-up in demand from paints and coatings applications pushed by the countries focussing on infrastructure development. This has caused Inorganic pigments prices to continuously soar in various European countries as well as other countries like China and others.
Lanxess AG, one of the leading specialty chemical company based in Germany announced rise in the Inorganic pigments price by at least EUR 150 per MT with immediate effect from 14th June.
As per the company’s latest press release, the increase in the overall price is subjected to the type of product as well as the production site. The abrupt price spike has been translated due to shortage in the supply of inorganic pigments during first quarter of 2021, impacted by the government-led closures across various countries following winter weather and Chinese New Year holiday. Additionally, continuing upturn in the raw material prices and rapidly escalating freight costs have influenced several manufacturers to raise the overall inorganic pigments prices. Further increase in the inorganic pigments prices in the coming weeks is anticipated, under supply crunch that could appear under the threat of movement restrictions in major provinces of China due to surge in COVID-19 cases.
It is also expected that the manufacturers including Lanxess and others will maintain stability under any circumstances soon by revamping their production capability. Such as in Nov. 2020, Lanxess increased its black synthetic iron oxide pigment capacity by 5000 TPA at one of its sites in Germany, being produced by Laux process followed by surging demand from construction sector to colour concrete and other applications viz., plastics, paints & coatings from across the globe.
During Q1 2021, various inorganic pigment manufacturers have reported manifold increase in their plants operating rates compared to 2020. However, there are projections that the demand-supply situation is still not under control, and it will take much time to narrow down this gap looking at the current trends and hence the prices will increase globally.