Iron oxide pigments: Cycles
The 2022 jump that almost doubled the price
What this tab covers Price history and what drives booms and busts, including this commodity's super-cycles, the drivers behind them and the metrics to track. It charts monthly prices (World Bank) with a switch to inflation-adjusted annual prices; where there is no World Bank series it uses USGS US prices.The US average unit value of finished pigment nearly doubled from $1.03 per kg in 2021 to $1.92 in 2022. It has stayed near $1.85-2.03 since and stood at about $1.90 in 2025. Volumes swing with construction and car output. US apparent consumption fell from 249,000 t in 2022 to 126,000 t in 2023, then recovered to about 200,000 t in 2025. In 2025, US car production fell 11% in the first seven months, while housing starts rose 1% in the first eight.
US price, Average unit value, finished IOPs sold or used by US producers
2021 1.03 2022 1.92 2023 2.03 2024 1.85 2025 1.90 dollars per kilogram. USGS MCS 2026; 2025 is an estimate.Super-cycles in iron oxide pigments
Iron oxide pigments have no exchange price and no long-run price series, so super-cycles cannot be measured. They are a mature, low-cost chemical whose demand follows building and coatings activity. The long-run story is a shift from natural earths to synthetics, and then a shift in synthetic capacity to China, which made over half of world supply by 2017. Recent US data show a sharp price jump in 2022 and big swings in volume.
- 1926-2016
Industrial synthetic pigment production at Krefeld-Uerdingen began in 1926 and grew into the world's largest inorganic pigment plant, displacing most natural earths in trade.
More than 13 Mt of pigment made at Krefeld over 90 years (bft International); no price series.
- 2008-2019
Production consolidated (sites halved since 2008) and capacity moved toward China; LANXESS built a 25,000 t plant at Ningbo and planned group capacity of 400,000 t by 2019.
No price series; LANXESS expected about 3-4% a year demand growth to 2025 (European Coatings, 2017).
- 2021-2025
US unit values nearly doubled in 2022 and stayed high while demand swung with destocking and housing.
US average unit value $1.03/kg (2021), $1.92 (2022), $2.03 (2023), $1.85 (2024), $1.90 (2025e); apparent consumption 249,000 t (2022) to 126,000 t (2023) to 200,000 t (2025) (USGS).
What drives the cycle
- Construction activity. Coloured concrete, pavers and roof tiles are the largest use; housing starts move demand.
- Coatings and automotive output. Paints and coatings take about a quarter of synthetic use; US car output fell 11% in January-July 2025 (USGS).
- Chinese capacity and export pricing. China makes over half of synthetic supply and is the largest US source.
- Scrap iron, energy and chemical co-product costs. Raw-material and energy costs and aniline output feed through to pigment prices.
- Industry consolidation. The number of production locations halved between 2008 and 2017 (LANXESS, via European Coatings), concentrating supply.
Metrics to track
| Metric | Why it matters | Where to track it |
|---|---|---|
| US housing starts | Concrete-product demand | US Census Bureau, monthly new residential construction |
| US imports and unit values (HTS 2821.10, 2821.20) | Price and source shifts | US Census Bureau trade data; USGS Mineral Commodity Summaries |
| China iron oxide exports | Largest supplier | China customs data |
| Coatings industry output | Paint demand | European Coatings news; company results of large paint makers |
| LANXESS segment results | Largest Western producer | LANXESS quarterly reports |