China becoming increasingly influential in filler minerals...

China becoming increasingly influential in filler minerals industry [contents]

Growth in Chinese consumption of kaolin, precipitated calcium carbonate (PCC), ground calcium carbonate (GCC) and talc has been significant over the last decade, closely reflecting the booming demand for paper, plastics and paint in the Chinese economy. In general, China is self-sufficient in sources of marble and limestone for the manufacture of GCC, lime and hence PCC. There are still large resources of talc remaining, but shortages of higher quality Grade A talc are reflected in the decreasing production of these grades and increasing costs of lump talc for export. There are a large number of kaolin deposits in China but few show the potential to allow the production of coating kaolin. Unless a suitable deposit can be found, coating grade kaolin will continue to be imported from the USA and Brazil and potentially elsewhere. China has large reserves of hard kaolin associated with coal measures in the north of the country. Whilst some grades of calcined clay are still imported, the development of the current operations will make China a more significant exporter in the next decade. This report presents a summary of the location of deposits of kaolin, calcium carbonate (for both PCC and GCC) and talc, production facilities and a review of domestic and export markets for these minerals. The key trends, issues and developments in the market are analysed in this major new report from Roskill. It provides a clear insight into the industry and its trends, and an authoritative analysis of the prospects for the future.

What the report gives you

Independent, in-depth research and analysis

Essential market intelligence for successful business planning

Maps and summaries providing details of major Chinese deposits

Up-to-date profiles of the activities of over 70 current and potential filler minerals producing companies in China, including Asia Pulp and Paper, Imerys, Sun Paper and Chenming

Forecasts for Chinese supply of filler minerals and demand from end-use markets, including paper, plastics, polymers and paints

Report highlights

Growth in Chinese production of GCC has been substantial with output in 2005 put at 5.52Mt, up from only 0.2Mt in 1990, an annual growth rate of almost 25%, to make China the second largest producer of GCC in the world. The main driving force has been investment by international paper companies in new paper mills, with current production levels of 55Mt forecast to rise to 80Mt by 2015.

Growth of both PCC and GCC in the Chinese paper industry is expected to increase at around 10%py for the next five to ten years. There are six new paper machines that are being commissioned in China that will open in 2006 that will increase demand for both GCC and PCC significantly.

Domestic production of hydrous kaolin for paper coating is insufficient to meet demand, so 243,000t was imported in 2005, mainly from the USA and Brazil. In 2006, imports of kaolin are expected to rise to 316,000t, an increase of 30% over 2005. Kaolin is now a sellers market in China, with price increases of 10-15% in early 2006 compared to 2005.

Production of calcined clay in China is the second largest in the world after the USA. Production is expected to double by 2010, with 27% destined for export.

Resources of high quality white and pink talc in China are becoming depleted and it is now difficult to buy top quality material. This has resulted in fundamental changes in the availability and pricing of talc, allied to the government restrictions based on the export of talc by a licensing system. With many international companies rely on purchasing lump talc from China, not only is there a serious shortage of high quality talc developing, but a restriction on the availability by the license system