Pigments Update 2006

Although the pigments market must continue to deal with the challenges of escalating prices for key raw materials and fuel, improving economic conditions in Europe and increased growth in the Asia Pacific market offer pigment suppliers a ray of hope.

"On a global basis, consumption of organic pigments is growing at a rate of 2-3%," said Peter Carey-Yard, director of marketing, global coatings, Sun Chemical Corp. - Performance Pigments. "The U.S. coatings market has been adversely affected in 2006 by lower production rates of automobiles and the softening housing market, which has affected the architectural paint businesses."

However, Carey-Yard noted that overall, Sun Chemical's coatings pigments business grew in 2006. He cited improving economic conditions in Europe and growth of the Asia Pacific market as the main reasons for the growth in sales over 2005.

"Compared to the previous year, the general pigments market exhibited modest improvements in volume and sales in the face of robust economies," said Andre Bendo, industrial industry manager, business line coatings, Ciba. "The dynamics of the market continued to change due to rising co