Why are Chinese water based pigment paste prices so big difference?

Two days ago, Sales Manager Mrs. Zhang of Caison company received a phone from one foreign trade company, it was about water based pigment paste quotation inquiry, and pigment paste would be exported to Africa. So Mrs.Zhang asked him four question first:

No.1: Whether applying for Caison pigment paste sample?

No.2: Whether having pigment paste sample from the customer now? And any testing made?

No.3: Whether any specific requirement of pigment pastes fastness and performance?

N0.4: Whether the customer has his target prices?

Obviously, this client didn't prepare any testing and confirmation with foreign customer, just told Mrs. Zhang that they would think about the alternative suppliers, because the Hangzhou G20 Summit would limit the surrounding factories production and transportation.

Then the client asked Mrs. Zhang for a quotation list about two kinds of pigment paste, one was pigment paste with 25% solid content; another was pigment paste with 35% solid content. The colors paste is black pigment paste, blue pigment paste, yellow pigment paste and red pigment paste.

However, Manager Zhang couldn't offer him complete quotation list, because:

First, Caison company didn't produce such low solid contented pigment paste, general solid content of Caison pigment paste is no less than 42%. This client neeed so low solid content pigment paste, actually, the 65% to 75% in the pigment paste was water and auxiliaries.

Second, no specific color index, just know a color name, we didn't ensure which colors type pigment paste demand; the similar colors would have difference in dozens of E (A unit of color).

Due to the wide application and so many colors, domestic pigment paste manufacturers all making intense competition, and the prices are confusion. Intermediate traders have more price sensitivity far beyond the requirements for pigment paste quality!

Let’s have a look at reasons of domestic water based pigment paste prices chaos.

Reason one, The national department doesn't have uniform quality standards of water based pigment paste production, all pigment paste manufacturers produce it based on their owned enterprises standards, the quality difference of pigment paste is so huge. And the main pigment material adding has bigger difference in quality of the same color. If the solid content of pigment paste is 25%, the pigment content of pigment paste is no more than 20%, so the color concentration is several times difference.

Reason two, water based pigment paste is formulated products, the initial threshold of water based pigment paste industry is lower, no need large chemical equipment investment.If just a few color types, several machines, several people , a small place and haing a pigment paste formulation, they can sart to produce pigment paste. But they don't have related technical control of product quality, don't have security facilities for employees, don’t have product safety standards,all of pigment paste factories like this would not have a long-term development.

Reason three, Small and Medium Enterprises of water based pigment paste don't have profit space, so they just provide products without 17% VAT in domestic market, this is tax evasion. For pigment paste manufacturers, there is a big risk.

Reason four, so many SMEs don't provide pre-sale and after-sale technical services, lacking product technical support and basic testing laboratory. As we know, water based pigment paste can be used for so wide applications,such as textile printing, architectural coatings, daily washing,latex materials, wooden products, metal coating. Also some of clients need special colors desin, all of these needs skill experienced technical services. But in Shanghai Caison Color company, we can provide these services for free to our customers.

No matter how chaos in water based pigment paste industry now, Shanghai Caison water based pigment paste will adhere to our owned leading technical standards. Even we can't get some orders like this foreign trade company clients, Caison will insist on high quality pigment paste  standard, to produce real super concentrated pigment paste to meet user needs.