As a consequence, main paint producers throughout the globe are discovering it troublesome to make some shades of the hue.
To put issues in perspective, an estimated 59% of the annual 1.1 lakh tonne of global provide of blue pigment comes from Gujarat (India’s share is 82%). Apart from the volumes, the state is dwelling to factories that produce pigments provided to premium car-makers Ferrari and BMW.
The Indian subsidiary of a number one multinational manufactures pigments that paint Ferrari purple — rosso corsa — and for Indanthrone blue, a darkish metallic shade donned by BMW, at its manufacturing facility in Ankleshwar.
Energy prices give pigment makers the blues
However, pigment producers – small and enormous – in the state have been compelled to scale back manufacturing by 25-50% because of the surge in costs of uncooked supplies, their unavailability and dealing capital points.
Rising vitality prices – coal and crude – have pushed up costs of uncooked supplies reminiscent of phthalic anhydride, cuprous chloride and urea. These are used to fabricate CPC Blue (Copper phthalocyanine blue) crude, a key ingredient of pigment blue, which in flip goes into the making of assorted shades of blue paints.
Prices of CPC crude have shot up from Rs 250 a kg to Rs 370-380 a kg since October final yr. As a consequence, costs of alpha blue pigment and beta blue pigment have jumped 60-70% and 40-50%, respectively, over the past one yr.
Alpha blue pigment at current prices Rs 600-850 per kg whereas beta blue pigment prices Rs 480-600 per kg, stated business gamers.
“High raw material prices have pushed up production cost by at least 150%. Moreover, suppliers have revised payment terms, forcing pigment makers to pay immediately or within a fortnight. This has eroded working capital,” stated Natubhai Patel, managing director, Meghmani Organics, one of many distinguished gamers in the pigment business.
“Shrinking working capital has forced pigment makers in the state to downsize production of pigment blue,” Patel added.
“Prices of key raw materials for CPC crude have firmed up substantially, which has increased pigment blue prices,” stated Gokul Jaykrishna, CEO and managing director, Asahi Songwon Colors Limited, which is among the high CPC crude and pigment blue producers in India.
Smaller and medium producers are feeling working capital pinch more durable, stated business gamers.
Gujarat is dwelling to no less than 150 pigment items in Ankleshwar, Dahej, Vapi and Ahmedabad, which make 70% of India’s manufacturing. Unavailability of uncooked supplies reminiscent of urea in addition to vessels for exports shipments have additional diminished manufacturing of blue pigment, in keeping with consultants.
Apart from the paints business, blue pigment is broadly utilized by ink, plastics and textile industries. The state of affairs for pigments reminiscent of inexperienced, purple, yellow and orange is identical. China holds a substantial command over their provide.
(With inputs from Parth Shastri)
, 2021-10-22 06:24:31