In the past 2020, the overall pressure on the ceramics industry was huge. As an upstream industry in the production of ceramics, pigment manufacturers have also endured great challenges. On the one hand, sales prices have fallen all the way, and on the other hand, raw material prices have risen all the way. After experiencing squeezing at both ends, the profit margins of many pigment manufacturers have been continuously compressed.
Recently,”Ceramics Information” is the world’s largest color glaze Material production base-Shandong Province visited and learned that In 2020, most color material manufacturers have a substantial increase in sales performance compared to 2019, but many manufacturers are hovering on the edge of”the amount is priceless”.
The colorant factory claims that”2020 sales will increase by more than 20%”
In the past 2020, although most ceramic companies are under huge sales pressure, this does not affect the annual sales of pigment manufacturers. Many heads of color material manufacturers in Shandong told”Ceramic Information” that their annual sales in 2020 will increase by more than 20%compared to 2019.
In the interview, the person in charge of many color material manufacturers in Zibo unanimously stated:”In 2020, most of the manufacturers who produce blank color materials will have good business. .”
“Although the pigment consumption of some production areas and some ceramic enterprises is shrinking, looking at the whole country, full bodyThe production capacity of marble tiles continues to grow. On the one hand, the production line capacity is expanding, and on the other hand, some ceramic companies in the production areas with lagging product innovation are demanding pigments. The volume is increasing. It can be said that this is the main reason for the increase in the sales of pigments in 2020.” Zhang Ning, general manager of Zibo Huagao Ceramic New Materials Co., Ltd., told Ceramic Information.
Currently, full-body marble tiles are still the mainstream products in the ceramics industry, and the demand for pigments by ceramic companies is still huge. On the whole, In the past 2020, the demand for pigments in the ceramic industry has increased unabated, which has stimulated the sales growth of upstream pigment manufacturers. “Ceramic Information” learned that in order to meet production needs, Zibo Jinming Ceramic Materials Co., Ltd. built two new color material production lines in 2020.
However, due to the fierce competition in the market, many manufacturers are trying to seize the market and slaughter prices, resulting in the continuous reduction of product prices and dragging down the profits of a group of excellent manufacturers Decline. “Everyone is fighting for the price. Whoever has the low cost will have the advantage.” An industry insider in Zibo who did not want to be named said that the profit of pigments is too low now. In order to seize the market, many manufacturers are making small profits. Operations.
At the moment of striving to survive, pigment manufacturers are unwilling to lose their market. Facing the low-price competition of their peers, they have to follow suit. Bargaining, which has accelerated the irrational competition in the entire industry.”The price is not the lowest, only lower.” This is the best interpretation of the current situation.
The cost of raw materials has risen by more than 30%
According to pigment manufacturers, the price of ceramic raw materials has been rising due to the epidemic in 2020, especially since October, almost all raw materials used in the production of pigments have been on the rise.
Take cobalt oxide as an example, as of the end of December , Cobalt oxide per kilogram rose from 180 yuan in October to 240 yuan, an increase of nearly 40%. In addition to cobalt oxide, the prices of other products have also risen sharply. Nickel oxide rose from over 80,000 yuan per ton to 120,000, an increase of nearly 50%; ChromeGreenFrom 18,000 yuan per ton to 24,000 yuan, an increase of over 30%; Iron red price increases are also close to 30%.
At the same time, Due to fierce cost competition, various ceramic companies are constantly pushing down supplier prices in order to reduce production costs, including Color material. Under this situation, pigment manufacturers are facing the decrease in the price of pigment products on the one hand; on the other hand, the price of raw materials continues to rise. Either reason has further aggravated the shrinkage of the profit of pigment manufacturers.
2021 body color, slate color or welcome opportunity
For pigment manufacturers, it is difficult to sustain without sufficient profit margins. To this end, Zibo pigment manufacturers continue to accelerate the development and production of high value-added products, and boost product added value and profit margins through the development of new products.
According to”Ceramic Information”, although the overall sales volume of color materials in 2020 has increased significantly, the sales volume of glaze color materials has declined. The main reason is that the large-scale application of inkjet inks has greatly affected the market demand for glaze pigments.
“As a pigment manufacturer, we must follow the market and only make blank pigments. The profit is too low and we can only speed up new products. Development.” Wen Zejie, general manager of Zibo Jinming Ceramic Materials Co., Ltd., said that Jinming Ceramic Materials intends to increase product development efforts, especially the R&D and production of glaze pigments.
Zibo Baodian Ceramics Material Co., Ltd. general manager Zhang Mingkai believes that the current ceramic industry’s entire industrial chain is very concerned about the cost of raw materials, but product quality can never be lost. Next, its company still insists on product quality, high-end and personalized development.
In Wen Zejie’s view, the pigment industry will continue to maintain a good momentum of development in 2021, especially the sales of blank pigments will maintain large sales . Today, with the rapid development of large slate products, the pigment industry will also accelerate the research and development of related products. It is expected that in 2021, green body pigments and slate pigments will usher in very good development opportunities.
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