In the last few years, the chromium chemicals, such as sodium dichromate, has been witnessing a significant surge in demand, especially Asia-Pacific and Europe. Sodium dichromate is a strong oxidizing agent extensively used in metal passivation across several industrial verticals, including pigments and coatings, screen printing in photographic engraving, electroplating, pyrotechnics, colored glass, and ceramic glaze, and explosives. The substance produces chromium vapors that are used to make pigments and other raw materials. Chromium compounds are also used in metal treatments, drilling muds, and wood preservatives.
Textile Industry: A Leading Contributor to the Sodium Dichromate Market
In the emerging countries, rising demand for pigments from infrastructure and textile industries drive the market growth as a massive amount of sodium dichromate is used for manufacturing pigments. As per the Indian Brand Equity Foundation, the textile industry in India is projected to reach over USD 250 billion by 2020. Debouching fashion trends, increasing disposable income, and rising standard of living provide an impetus to the market growth. Sodium dichromate is also used in aerospace, construction, automotive, and electronics industries, further driving the market growth.
Novel Application of Sodium Dichromate to Drive the Market Growth
The demand for sodium dichromate is anticipated to boost during the forecast period strongly backed by its applications as a significant intermediate in many industrial raw materials. Sodium dichromate is corrosion resistant and is extensively used in metal finishing, aeronautics, automotive, electrical, and defense sectors. Several industrialists are using sodium dichromate in flexible packaging to extend the shelf life of the packaged products, further bolstering the market growth. Moreover, sodium dichromate has been witnessing a significant surge in demand from the leather manufacturing industries as it assists in the tanning process and increasing shelf-life. The compound has the ability to extend the shelf-life of the wood, which is why it is extensively used in wood preservatives.
Sodium Dichromate Market: Segmentation
Shifting Customer Preference towards Architectural Housing Drives the Pigments Segment Growth
Sodium dichromate is extensively used in the production of pigments as they have the capacity to produce a range of stable colors. It finds application in textile and industrial coating industries. Growing industrialization is subsequently increasing the consumption of paints and coatings, further driving the market growth. Increasing the standard of living and shifting customer preference towards architectural housing and aesthetic appeal drives the segment growth. Apart from this, sodium dichromate is used in metal components manufacturing industries for its corrosion-resistant properties. The rapid expansion of the automobile industry is subsequently driving the demand for metal components and auto parts
North America’s Rising Demand for Wood in Commercial and Residential Sectors
North America is projected to witness significant growth in the sodium dichromate market. The U.S. Environmental Protection Agency has imposed national emission standards for sodium dichromate due to negative health impacts. Rising demand for wood in commercial and residential sectors drive the market growth. As per the report published by the United States Department of Agriculture (USDA), on average, new residential construction accounts for about one-third (50%) of all the wood products used in the U.S. annually, further rising the demand of sodium dichromate.
Europe to Witness Significant Growth in the Sodium Dichromate Market
Europe is projected to witness significant growth in the sodium dichromate market on account of the approval of the European Union for the use of sodium dichromate in conversion coating and passivation. The advent of novel printing technology such as RGB and flourishing metal and automobile industries provide an impetus to the market growth. As per the statistics published by the Observatory Economic Complexity (OEC), Europe accounts for 50% of the imports of sodium dichromate, followed by Asia. The below-mentioned info-graph depicts the share of top regions importing sodium dichromate for the year 2018.
China Holds the Largest Share in the Sodium Dichromate Market
In Asia-Pacific, China holds the largest market share on account of the rising adoption of eco-friendly products, such as pigments, the presence of well-establishing infrastructure, and rapid industrialization. However, fluctuating cost and demand for sodium dichromate might hamper the regional market growth.
Export Analysis- Global Sodium Dichromate Market
As mentioned above South Africa maintains the top position in the exports of sodium dichromate with the export value of USD 46.4 million, followed by Kazakhstan with export value reaching USD 42.5 million.
Growing environmental concerns have compelled the governments of various countries to implement stringent laws and regulations on the use of chemicals. Sodium dichromate is identified as a dangerous element causing severe damage to humans and animals on exposure. In Europe, on March 16, 2018, the forum for enforcement launched a new third pilot-scale project on the approval of chromium VI compounds and several other substances. Under this project, the substance will be subjected to check if it is used according to a valid authorization.
On March 23, 2018, the European Commission granted three authorizations for sodium dichromate. The substance has been granted to apply as a corrosion inhibitor in the ammonia absorption cooling system, utilized in the commercial production of freeze-dried products such as spices, herbs, coffee, and comparable products.
On December 18, 2017, LANXESS s raised the prices for sodium dichromate by 20% to continue the long-term supply security for its end-users
Sodium Dichromate Market: Segmentation
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