Review of the Iron Oxide Sector in China in 2014 and Outlook for 2015

By Lin Zhihua, China Coating Industry Association Iron Oxide Branch


1. Economic functioning

The overall economic functioning of the iron oxide sector in China was stable in 2014 (see Table 1). Table 2 shows the economic indexes of the iron oxide sector in 2014.

2. Production and marketing

Table 3 shows the volumes of various products provided by the iron oxide sector in 2014. Table 4 shows the consumption of products supplied by the iron oxide sector to various markets in 2014. Table 5 shows the total apparent consumption of iron oxide products with various applications in China in 2014.

3. Import and export

Table 6, Table 7 and Table 8 show the import and export of iron oxide products in China in 2014.

4. Outlook for 2015

The iron oxide capacity in China was more than 800 kt/a in 2014. It is expected that the capacity will reach over 850 kt/a by the end of 2015. The status of capacity surplus can hardly be reversed and the iron oxide sector will be faced with integration and upgrading.
Although the iron oxide sector has a considerable pressure of declining trend, the entire sector will maintain stable functioning in 2015.             

Table 1    Economic functioning of the iron oxide sector in 2014

Year    Sales revenue
(RMB million)    Net profit
(RMB million)    Export value
(US$ million)
2013    3 960    47.6    321.2
2014    4 200    50.4    346.5
YoY growth (%)    6.06    5.9    7.87


Table 2    Economic indexes of the iron oxide sector in 2014

Item    2014    2013    YoY growth (%)
Capacity (kt/a)    800    780    2.6
Output (kt)    680    640    6.25
Sales revenue (RMB million)    4 200    3 960    6.06
Sales volume (kt)    630    622    1.3
Export volume (kt)    320.7    305.7    4.91
Export value (US$ million)    346.5    321.2    7.87
Import volume (kt)    232    222.7    4.15
Import value (US$ million)    117    111    5.45


Table 3    Domestic output of the iron oxide products in 2014

Year    Iron oxide red series
(kt)    Iron oxide yellow series
(kt)    Iron oxide black series
(kt)    Others
(kt)    Total
(kt)
2014    292    232    116    40    680
2013    280    220    108.8    31.2    640
YoY growth
(%)    4.28    5.45    6.62    2.82    6.25


Table 4    Consumption sectors of the iron oxide products in 2014

Year    Construction materials (kt)    Coatings (kt)    Rubbers and plastics (kt)    Papermaking (kt)    Others (kt)    Total (kt)
2014    104    111    57.7    28.9    28.4    330
2013    98.7    95.5    56.8    31.5    22.5    305
YoY growth (%)    5.4    16.2    1.6    -8.25    6.7    8.2



Table 5    Apparent consumption of iron oxide products in China in 2014

Year    Construction materials (kt)    Coatings  (kt)    Rubbers and Plastics (kt)    Ceramics and papermaking  (kt)    Others  (kt)    Total  (kt)
2014    162.5    172.2    83.3    59.14    32.1    509.24
2013    158.7    165.5    76.8    41.5    24.95    467.45
YoY growth (%)    2.39    4.05    8.46    42.51    28.66    8.94



Table 6    Import and export of iron oxide products in China in 2014

Item    2014    2013    YoY growth (%)
Import volume (kt)    232    222.76    4.15
Import value (US$ million)    117    111    5.45
Export volume (kt)    320.7    305.74    4.91
Export value (US$ million)    346.51    321.24    7.87


Table 7   Export destination of iron oxide products in 2014

Destination    Export volume (kt)    YoY growth (%)    Export value (US$ million)    YoY growth (%)
Europe    67.7    8.32    70.46    6.37
North America    105.3    13.40    116.76    19.12
South America    9.7    1.04    10.81    5.00
Southeast Asia    70.0    3.40    81.71    9.70
Middle East    34.0    -11.22    32.46    -13.21
Oceania    8.6    -1.61    8.79    2.0
Africa    25.4    -3.05    25.52    -2.50
Total    320.7    4.89    346.51    7.87


Table 8    Import sources of iron oxide products in 2014

Source    Europe    America    Asia    Oceania    Africa    Total
Import volume in 2014 (kt)    28.5    29.5    157.2    13.75    3.05    232.0
Import volume in 2013 (kt)    29.1    33.2    158.5    -    1.96    222.76
YoY growth (%)    -2.1    -11.14    -0.82    -    55.61    4.15
Import value in 2014 (US$ million)    29.33    8.47    70.32    8.68    0.28    117.08
Import value in 2013 (US$ million)    27.03    7.47    76.27    -    0.26    111.03
YoY growth (%)    8.5    13.38    -7.8    -    7.7    5.45