China’s iron oxide red industry will achieve sustainable development in 2023

Industry Overview

Iron oxide red (its chemical formula is Fe2O3) is an important inorganic pigment (red or dark red amorphous powder), with good diffusion properties, density ρ=5.24g/cm3, oil absorption is about 20%, particle fineness is small, insoluble in water, slightly soluble in nitric acid, soluble in sulfuric acid, hydrochloric acid, It has excellent pollution resistance, light resistance, high temperature resistance and weather resistance, etc. It also has the characteristics of low cost and low toxicity.

Model mainly divided into color depth model of iron oxide red, iron oxide red pigment of the main types are: 100110101120130140160180190, color also arrange from shallow to deep, of which 110130190 model mainly based on the color of the German bayer (lanxess) as the reference standard. In fact, the color of each model of the same iron oxide red manufacturer will also be different, such as the iron oxide red 130 and 190 models of the same manufacturer, the color appearance looks slightly different, generally adding a prefix or suffix in the front of the "130, 190" model. There is no clear standard for the model classification of iron oxide red in our country. The main models of iron oxide red widely used in our country are: H110,H120, Y101, H130, China Red, H101 (1#, 2#), H190 and so on.

Production process

With the rapid development of the national economy of our country, the market demand of iron oxide red is great, and its production quality and production method have also aroused wide attention. At present, the preparation process of iron oxide red is relatively good.

The main component of iron oxide red is iron oxide, and the color physical performance of iron oxide is red or red yellow. Iron oxide red is powdered in the application, and the common preparation process is iron oxide black method, direct oxidation method, precipitation method, hydrothermal method, calcination method - ferrous sulfate + soda.

Current situation of industry development

In recent years, iron oxide industry of our country is in a conformity state, and the enterprises optimize product structure and increase the added value of products constantly. As an important pigment, iron oxide red plays an important role in industrial applications and has broad market prospects. In 2021, China's iron oxide red production capacity maintained 3.6 million tons, an increase of 10,000 tons from 2020; It is expected that China's iron oxide red production capacity will be about 380,000 tons in 2023.

From the perspective of the capacity utilization rate of iron oxide red in China, the capacity utilization rate of iron oxide red in China was about 73.42% in 2021; It is expected that the capacity utilization rate of iron oxide red in China is expected to exceed 90% in 2023.

Iron oxide has bright red color, good light resistance and weather resistance, and is widely used in advanced fine grinding materials, coatings, building materials, plastics and other fields. The stable and healthy development of downstream industries such as construction, rubber and coating has a certain promotion for the stable development of iron oxide red industry.

In 2021, the production of iron oxide red in China was 264,300 tons, accounting for 46.50% of the national iron oxide production; In 2022, the production of iron oxide red was 322,300 tons, accounting for 50.58% of the national iron oxide production. It is expected that the production of iron oxide red will continue to grow in 2023, and it is expected that the domestic production of iron oxide red will increase slightly in the next few years.

Industrial chain

Industrial chain structure

The upstream of the iron oxide red industry chain is mainly ferrous sulfate, ferrous nitrate, iron sulfate, iron nitrate and other raw materials, mainly iron oxide, which is a widespread substance that can be extracted from a variety of minerals, such as hematite, ferrous iron ore, pyrite, etc. Among them, iron oxide extracted from hematite is the most commonly used. Iron oxide has bright red color, good light resistance and weather resistance. It is widely used in ceramics, glass, paint, pigments, plastics, rubber, cement, coatings, printing and textiles.

Upstream - iron oxide

The raw material of iron oxide red is mainly iron oxide, which can be extracted from hematite, black iron ore, pyrite and other minerals. Among them, iron oxide extracted from hematite is the most commonly used. In 2021, China's iron oxide production capacity was 800,000 tons, and the output of iron oxide was 568,600 tons. In 2022, the iron oxide industry is in the most difficult period, forcing manufacturers to operate... Production stopped, the normal production and operation of enterprises encountered great difficulties. In recent years, China's iron oxide production capacity has basically remained at 800,000 tons. It is expected that China's iron oxide production capacity will remain at 800,000 tons in 2023, and the output of iron oxide will be about 70 tons.

Downstream - Building

From the perspective of product market application, the construction industry is the largest downstream market of iron oxide red, and the iron oxide red used in the construction industry in our country accounts for about 40% of the entire market share.

In recent years, with the pace of national construction, our country construction industry to complete a series of major infrastructure projects related to the national economy and people's livelihood, greatly improved the people's housing, travel, communications and other conditions. In 2021, the construction area of enterprise housing in China's construction industry was 15.755 billion square meters, an increase of 808 billion square meters or 5.41% over the previous year, an increase of 1.72 percentage points over the previous year, maintaining growth for the second consecutive year.

The completed area was 4.083 billion square meters, an increase of 235 million square meters over the previous year, an increase of 6.11 percent. In 2022, the housing construction area of construction enterprises nationwide was 15.645 billion square meters, down 0.7% year on year; Construction enterprise housing completed area value of 4.055 billion square meters.

Competitive landscape

Iron oxide red is a kind of product with the largest output and demand in inorganic color pigments. The formation of enterprise core competitiveness generally requires a long-term cultivation and development process. There are many iron oxide red production enterprises in China. At present, the major manufacturers in China include Lanxess, Huayuan Pigments, Jiangsu Hengsheng Chemical Co., LTD., Jiangsu Yuxing Technology Co., LTD., Hunan Nonferrous Metal Chemical Group Co., LTD., Jiangsu Wujiang Jingsheng Chemical Co., LTD., Guangxi Haikang Qiming Pigments Co., LTD., and Shanghai Yipin Pigments Co., LTD. Since 2016, China's iron oxide red industry has begun to integrate, and the market concentration has increased year by year. In 2021, the top five manufacturers of China's iron oxide red industry account for more than 70%, and the industry competition is expected to be more intense in the next few years.

Industry development trend

Iron oxide red is an important pigment that is often used in various applications. The demand for iron oxide red in the construction and real estate industries is likely to continue to increase as urbanization accelerates and infrastructure construction continues to grow across the globe.

The guidance and support of national policies will also play an important role in promoting the development of iron oxide red industry. As the country attaches increasing importance to environmental protection and sustainable development, the formulation and implementation of relevant policies will guide enterprises to increase investment in environmental protection and promote technological innovation and industrial upgrading. At the same time, the government will also encourage enterprises to increase investment in research and development to improve the added value and competitiveness of products. In the future development, the iron oxide red industry will pay more attention to the research and development of low pollution, non-toxic and harmless products. By improving the production process and product quality, and reducing the impact of pigments on the environment, the iron oxide red industry will continue to introduce more high-performance products.

In short, the iron oxide red industry will pay more attention to environmental friendliness, high-performance products, cooperative innovation, policy support and global market expansion in the future development. With the development of society and the changing needs, the industry will constantly adapt and adjust its development strategy to achieve sustainable development.