ShenZhen Jakeconn Precision Technology Co., Ltd. , https://www.jakeconn.com
Heavy crude sulphate industry is hard to develop
In 2007, the barium sulfate market in China was booming, with strong demand and limited supply. Despite the favorable market conditions, many producers struggled to make significant profits. High production costs, outdated equipment, and increasing environmental regulations made it difficult for companies to operate efficiently. This was highlighted at a recent industry meeting where several manufacturers shared their challenges.
Stakeholders from provinces such as Shanxi, Shaanxi, Hebei, Guangxi, Hunan, and Chongqing noted that although all companies managed to clear their inventory, profits remained minimal. Some even operated at a loss. According to them, the main reasons were rising coal prices and the cost of raw barite, which significantly increased production expenses. Additionally, most barium sulfate products were produced using traditional, low-tech methods, resulting in low-value outputs and poor profitability.
Currently, there are only 89 large-scale barium sulfate producers in China, each with an annual capacity of over 10,000 tons. The total annual output is approximately 200,000 tons, with the majority used in the paint industry. A smaller portion goes into plastics, rubber, and ink. With the rapid growth of the powder coating sector, domestic demand has surged, driving industry expansion.
Meanwhile, traditional barium sulfate-producing countries have faced declining production due to resource depletion, higher energy costs, and stricter environmental regulations. This has led to a growing export trend for Chinese barium sulfate. Since 2001, exports have grown by more than 10% annually, reaching 58,000 tons in 2007.
Experts predict that during the "Eleventh Five-Year Plan" period, China’s economic growth will remain around 8%. As key industries like construction and automotive continue to grow, the demand for barium sulfate—used as a functional additive in coatings, plastics, and rubber—is expected to rise faster than the global average. By 2010, domestic demand is projected to surpass 30–35 tons, accounting for about 60% of global consumption.
However, despite market expansion, many companies still face low profitability. In 2008, rising coal prices, limited mineral resources, and higher labor costs pushed production costs up by around 40% compared to 2007. Companies also struggled with outdated technology and high pollution levels, making it hard to invest in upgrades or environmental improvements.
At a recent industry workshop, major producers agreed on the need to modernize production facilities, invest in green technologies, and ensure reasonable price increases. They also pledged to resist low-cost dumping and focus on product innovation to enhance competitiveness. These efforts signal a shift toward sustainable growth and long-term profitability in the barium sulfate sector, offering hope for a brighter future amid ongoing challenges.