A blockbuster release! Brief analysis of the economic operation of iron oxide industry from January to June 2022!

1. Overview of overall operation

In the first half of 2022, China’s iron oxide industry is facing triple pressure from the impact of the epidemic, the contraction of demand and the weakening of the market, and the normal production and operation of enterprises are encountering great difficulties. All aspects of the industry have worked hard together to push the iron oxide industry out of the trough. At present, the production and sales of iron oxide have returned to the normal level.

2. Economic data completed from January to June 2022

Since June, the supply chain affected by the epidemic in China’s iron oxide industry has fully recovered, and enterprises have accelerated production to make up for the losses. In the first half of the year, the production and sales were 293,200 tons and 258,004 tons respectively, up 2.88% and -5.67% year on year respectively. In the first half of the year, the production and sales of iron oxide generally showed a “U-shaped” trend, with stable growth, rapid decline from March to May, and gradual recovery of market vitality in June. At the most severe moment of epidemic prevention and control in the first half of the year, enterprises took a series of effective measures to smooth the industrial chain and supply chain, reducing the impact of the epidemic on the industrial chain to a minimum. At present, the iron oxide industry is generally recovering well.

3. The overall market share of key enterprises remains stable

In the first half of this year, the leading enterprises in the industry, such as Zhejiang Huayuan, Jiangsu Yuxing Technology, Yixing Huayi Yipin, Tongling Ruilai Technology, Zhejiang Yifan, Zhejiang Youcai, Zhejiang Deqing Meisler Pigment, Guangxi Haikang and Hefei Zhangxun Environmental Protection Technology, produced 196,200 tons and sold 202,300 tons. Accounting for 67% and 78% of the total output and sales of the industry; Among them, Zhejiang Huayuan, Jiangsu Yuxing Technology, Yixing Huayi Yipin, Tongling Ruilai Technology, Zhejiang Yifan, Zhejiang Youcai and many other enterprises have better sales volume and sales volume than the same period of last year.

4. Five, iron oxide export situation is better

In the first half of this year, enterprises exported 1930,000 tons and earned foreign exchange of 247.5 million dollars, hitting a record high, with year-on-year growth of 11.56% and 39.05%. Although the conflict between Russia and Ukraine has affected some export markets, the international situation remains uncertain. But according to the situation from the enterprise, most of the overseas orders are in good condition, there is no sign of falling back.

The export volume and sales price of China’s ferric oxide entering the international market in 2022/2021： 

Comparison of iron oxide Export Volume Data from January to June of 2022-2021 (tons)

Comparison of Export Volume to Southeast Asia from January to June, 2022-2021 (ton)

Comparison of Export Volume to Middle East from January to June, 2022-2021 (ton)

Comparison of Export Volume to Africa from January to June, 2022-2021 (ton)

5. Integrity management, the industry in action

During the “14th Five-Year Plan” period, the iron oxide industry pays attention to the development of functional, green and other high-end fine iron oxide chemicals to expand the market. In the process of structural adjustment and industrial upgrading, the “Green Factory Standard of Iron oxide pigment Industry” is fully implemented, and the work of environmental protection, safety, quality, technology, equipment, energy saving, carbon reduction and other aspects within the enterprise will be done well. According to the requirements of green economy development, as environmental protection and safety requirements gradually become stricter, more attention is paid to environmental protection and safety work, mainstream enterprises are accelerating the upgrading of environmental protection and safety equipment.

In addition, it is understood that some enterprises judge that the continuous market trend has not improved significantly due to the influence of multiple factors, and there are still many uncertain factors affecting demand. Comprehensively judging the annual ferric oxide market, we expect that the sales volume of ferric oxide in 2022 will be the same as that of last year.