Iron Oxide Red industry faces the risk of overcapacity, and the industry tends to be high-end development
Iron Oxide red is divided into artificial iron oxide red and natural iron oxide red. Natural iron oxide red is dark red or red amorphous powder, while artificial iron oxide red has different crystal structure and physical properties due to different preparation methods and operating conditions. Its colors include red, blue and purple. Iron oxide red is the most numerous and complete variety of iron oxide pigments, accounting for about 70% of the total. The production process of iron oxide pigment and iron oxide red is generally divided into dry and wet processes according to the reaction of raw materials.
Iron oxide red is mainly used in building materials, coatings, plastics, advanced fine grinding materials and other fields, of which building materials account for 28%, paint accounts for 45%, rubber and plastic accounts for 15%. Paint and coating is the largest application field of iron oxide red in China. In recent years, China's paint output has increased steadily. In 2020, China's paint output will be 25 million tons. At present, high solid content electrophoretic coatings, low organic volatile powder coatings, low pollution curing system coatings, iron oxide pigments requiring low water absorption and high strength, and iron oxide red that is easy to disperse after processing or adding surfactants are the future development direction of iron oxide red coatings.
China's iron oxide red started in the late 1970s and entered a mature stage after 2015. In 2020, the domestic iron oxide production capacity will be about 800000 tons / year. After integration, transformation and upgrading and structural adjustment, the industrial capacity will remain at 800000 tons / year in 2020, facing the crisis of surplus. In recent years, the actual production capacity of China's iron oxide red industry has been maintained between 300000 and 360000 tons, and the annual production capacity will reach 340000 tons in 2020.
In terms of output, the output of iron oxide red in China will be 251000 tons in 2020, while the growth rate of market demand is basically the same. At present, 42% of the global output of iron oxide red comes from China, but China accounts for only 34% of the total consumption. In 2020, China's demand for iron oxide red will be 210000 tons.
Iron oxide red is mainly used in the field of paint, but in recent years, the global and Chinese paint industry has been sluggish, and the market demand space of iron oxide red is small. Although the domestic production capacity of iron oxide red is relatively high, most of the production units have been shut down due to the impact of environmental protection policies. In 2020, the actual production capacity of iron oxide red in China is less than 400000 tons. In terms of production and demand, China is the main producer of iron oxide red in the world, and the market demand is also high.
