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[Sep 2005]
Added Value for Raw Materials to be Addressed at Leading Exhibition
A growing number of raw materials suppliers are developing their product portfolios to include products that create more value. These include specially processed raw material blends and ready to use clay and glaze formulas. Product development is increasingly adapting itself to specific technological and product-specific applications. The latest innovations will be presented at Ceramitec in Munich from 16-19 May 2006, according to the organiser Messe Muenchen GmbH.
In many cases, work in the field of formula development is being outsourced by ceramic producers to their suppliers, resulting in increased R&D activity in this segment. Having a wide range of basic raw materials available makes it easier for raw material suppliers to provide attractive solutions. Although they possess high quality deposits and extensive know-how and equipment, during the past few years it has become increasingly important for them to also have detailed knowledge about the technologies that ceramic manufacturers use so that they can provide system solutions.
Another central topic identified by Messe Muenchen in this segment is logistics, because the customer views costs on the basis of price quotations that include delivery. However, the high cost of energy - especially oil prices - and the new tolls being charged for delivering by truck have created additional problems on this front. For this reason, leading raw material manufacturers have increased their prices, many of them in the double-digit range, irrespective of product, for the year 2005. Because the market for ceramic products leaves little leeway for passing on these increased costs, this has led to difficult negotiations, especially with large customers who purchase materials in bulk.
Sharp increases in the consumption of raw materials by the Chinese ceramic industry is also influencing certain raw material groups. Shortages are resulting in higher prices for, for example, glaze raw materials based on zinc, zircon, nickel and vanadium oxide and also raw materials for refractory products.
Besides being an increasingly important producer in the refractory sector, China is also an important supplier of raw materials. It has its own raw material resources for its booming steel industry - 70% of its refractories go into this segment - and has increased its export prices considerably. The Chinese raw materials industry is also increasing its influence by taking over or investing in foreign raw material operations. Conversely, a growing number of foreign companies are now investing in the sector for various industrial minerals in China to better participate in the growth of Chinese production.
The raw materials hall at Ceramitec is always one of the busiest in the show, full details of which are available from the dedicated website.
www.ceramitec.de
ENDS