China’s Ferric Oxide Market Report 2006
2 min readChina’s Ferric Oxide Market Report 2006
In 2006，the supply of China’s ferric oxide was balanced and ample，not excluding shortage or overstock in some areas or within certain manufacturers at a particular period.
Influenced by the history and social background，China has four major advantages to develop ferric oxide industry:skilled and low-cost labor force，rich raw materials，professional technical personnel and large market at home and abroad.
Ferric oxide industry belongs to a labor-intensive industry with resource and energy consumption.Along with the requirements of China environmental protection policies and development trend，higher requirements are put forward to protect the environment during ferric oxide production.Chinese government attaches greatimportance to production and management of ferric oxide industry，therefore a reasonable，moderate and feasible control on total demand of ferric oxide has been worked out.China has already released relevant policies to restrict these manufactures in immature production conditions with annual output below 5000 ton，which not only waste resource but pollute environment，so as to protect exporting manufactures，to ensure reasonably utilize resource and to reduce pollution influences on social environment.
Analyzing China’s Ferric 0xide Development
It should also be noted that problems co-exist with the rapid development of China’s ferric oxide industry.On one hand，low threshold to ferric oxide industry caused mass production and long-term repeated construction，regardless of market demand；on the other hand，the primary products of China’s ferric oxide accounts for a big market share，which means the quality of ferric oxide products is still at middle-low level in international market；moreover，the value added to products is low.Restricted by the requirements of energy，resources and environment，the production of ferric oxide is under higher pressure.Export is also hindered by Euramerican economic fluctuation and trade bulwark.
In general，China’s ferric oxide industry has a good prospect.The construction of rural-urban infrastructure will stimulate the demand of ferric oxide as construction paint.Particularly，the start-up of Beijing 2008 0lympics project and Shanghai 2010 World Expo project will drive the development of ferric oxide industry.What’s more，the demand of China’s ferric oxide products in oversea market is also large.As long as China’s ferric oxide manufacturers seize this opportunity，speed up saving energy and reducing energy consumption，develop new products and improve the value added to products，more market shares can be occupied.
