By Lin Zhihua, Iron Oxide Pigments Branch of China National Coatings Industry Association

China to become the world’s iron oxide manufacturing center

Asia-Pacific region has become the world’s largest iron oxide pigments market, spurred by many factors, e.g. rising investment in industries like construction and coatings, large population, strong spending power, etc. The number of China’s iron oxide pigments firms has dropped from 80 to around 40 in recent 10 years, with unqualified ones – in the aspects of environmental protection, product quality, etc. – merged or exiting from the market. Domestic major producers of iron oxide pigments include Zhejiang HYROX Pigment Co., Ltd., Jiangsu Yuxing Technology Co., Ltd., Yixing Huayi Yipin Coloring Technology Co., Ltd., etc.

China’s iron oxide capacity reached 800 000 t/a in 2022, when domestic market demand was 300 000-350 000 tons, a large part of the world’s 900 000 tons-1 million tons. Meeting domestic demand and serving global market is the development orientation of China’s iron oxide industry. To a great extent, China has become a processing base of foreign iron oxide manufacturers. Table 1 shows economic indicators of China’s iron oxide industry from 2021 to 2022. Figure 1 and Figure 2 show China’s consumption and supply of iron oxide pigments from 2018 to 2022.

Figure 1 China’s apparent consumption of iron oxide pigments from 2018 to 2022

Figure 2 China’s supply of iron oxide pigments from 2018 to 2022

Iron oxide import and export enterprises have solid foundation, and have been strengthening innovation capability. In 2022, the number of firms with iron oxide export performance was 16, including 12 private enterprises, two foreign-invested corporations and two state-owned companies. Private firms accounted for 35% of export scale, enhancing their leading position in iron oxide foreign trade. See Table 2 and Table 3 for detailed import and export data from China Customs and China National Coatings Industry Association, Iron Oxide Pigments Branch.

Iron oxide synthetic products currently dominate the market. Quality of life becomes increasingly important for people, leading to growth in demand for functional iron oxide pigments. However, most domestic pigments producers pay extremely limited attention to technical R&D. Hence a failure in entering high-end markets. Given weak demand from traditional markets and severer competition, enterprises should upgrade technologies, and seek new chances relying on high value-added products.

New development directions of iron oxide products

Technical R&D will focus on: 1) easily dispersed products (e.g. iron oxide powder or paste-like goods used in concrete grout); 2) heat-resisting iron oxide used in plastics, coil coatings and powder coatings; 3) functional iron oxide products used in the areas of electronics, automobiles, batteries, magnetic ink, leather and wood painting, water treatment, energy storage, desulfurization, etc.

Another R&D focus is iron oxide used in magnetic materials, which require iron oxide with fine, uniform particles, high degree of purity and few chemical impurities. Recently launched magnetic nanoparticle iron oxide – applied to nano magnetic fluid – is a kind of high-end product, superior in high-frequency performance, service life, etc.

Due to more stringent environmental requirements, high solid coatings with low content of VOCs develop rapidly, stimulating firms to research iron oxide pigments having low oil absorption and high color intensity. Easily dispersediron oxide red (processed or added surfactants), heat-resistant iron oxide yellow and iron oxide black after modified treatment could be employed by high solid coatings. Further, many domestic firms produce color paste iron oxide, and put it into use in industries like coatings and building materials. To strengthen competitiveness of this product, producers need to improve product quality and lower prices.

After long-term development, China’s iron oxide technology has entered an innovation stage. Facing new challenges and new opportunities, iron oxide enterprises should upgrade products, improve competitiveness, increase profits, maintain stable growth, etc.