The output and demand of China's iron oxide red industry show a wave trend, and paint is the main application field

November 05, 2021

Iron Oxide Powder 145 Jpg

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 the preparation method and operating conditions of artificial iron oxide red are different, its crystal structure and physical properties are different, and its colors are red and purple. The production methods of iron oxide red mainly include iron oxide black method, direct oxidation method, precipitation method, hydrothermal method, calcination method - ferrous sulfate + soda ash, etc.

Iron oxide red is insoluble in water and all alkalis. It will only gradually dissolve in strong acids at high temperature. It has excellent light resistance, high temperature resistance, pollution resistance, atmospheric resistance, weather resistance, etc. It is mainly used in building materials, coatings, plastics, advanced fine grinding materials and other fields. China's iron oxide red industry has experienced three rounds of development, from the initial stage of the founding of new China to the mature stage of the industry in the 21st century.

In recent years, China's iron oxide red production capacity has been expanding, the capacity utilization rate has gradually decreased, and the market is in a state of overcapacity. According to the data, in 2019, China's domestic capacity reached 351000 tons, a year-on-year increase of 1.74% compared with 345000 tons in 2018, and the capacity utilization rate was 70.20%.

Affected by the overall economic environment, the economic growth of China's iron oxide red industry has slowed down, but the output remains relatively stable. According to the data, the output of iron oxide red in China reached 246000 tons in 2019 and 244000 tons in 2020, a year-on-year decrease of 1%.

In recent years, the demand of iron oxide red industry in China has been fluctuating. According to the data, the demand for iron oxide red in China in 2019 was 222300 tons, a year-on-year increase of 4.32% over 2018; In 2020, China's demand for iron oxide was 208100 tons, a year-on-year decrease of 6.39%.

From the perspective of the downstream consumption market of iron oxide red in China, the market share in the field of coatings and paints in China will be the largest in 2020, up to 45.3%; The second is the construction field, accounting for 28.5%; The market share of rubber and plastics reached 16.2%.

The paint industry is the largest application field of iron oxide red in China. In recent years, the output of paint in China has been increasing, which has also promoted the development of iron oxide red industry in China. According to the data, China's coating output in 2020 was 24.591 million tons, a year-on-year increase of 0.83% over 2019.

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