Coatings industry will be affected by prices

Since late last year, the prices of paints and coatings on the market have increased by 5% to 10%. The prices of all products in China have been doubling since then, and for the price increase, paint distributors have also Expressed helplessness: price notification has been issued, and there are some stocks, it is understood that because the paint coating raw materials for petrochemical products, affected by the impact of international crude oil price fluctuations. Recently, the prices of major raw materials such as chemical solvents, titanium dioxide, tung oil, and rosin have increased significantly. All brands of paints and coatings have all increased in price.

Consumer demand stimulates the price of gold Jiuyin 10 promotion frenzy is approaching, but also brought development opportunities for the building materials industry, but endless consumer demand has also brought pressure to paint companies, due to the stimulation of consumer demand and guidance of building materials to the countryside policy, building materials Since the beginning of the first half of the year, the commodity prices of the raw material market have continued to rise, so that consumers and paint companies have constantly speculated about the price of paint. Judging market conditions and trends, but ultimately there is no satisfactory answer.

For example, previous market surveys showed that the prices of most building materials were “not moving”, and some manufacturers still quietly lowered the prices of products in the form of discount promotions in the fall season. But it seems that the market repercussions are not as good as expected.

Needless to say, the price of the product is certainly very sensitive to the consumer, so it is also very sensitive to the price increase. The relevant person in charge of a number of building materials supermarkets has denied it.

Today's building materials products are in order to meet the needs of the greater part of people, so the speed of product replacement is also very fast. The old, outdated products will surely have a certain price drop, which will eventually be eliminated by consumers. With the introduction of new products, the price may be raised. After two months of brewing, the new wave of price rises in the paint industry has finally burst, which has become a major incentive for price increases.

Pressure on the cost of raw materials for paints is high in the late period of the financial crisis in China, and many companies have not completely eased themselves. In early 2009, the impact of the financial crisis initially appeared, and more than 60% of small and medium-sized enterprises in the titanium dioxide industry have stopped production. In the semi-discontinued state, the price of titanium dioxide has been declining all the way. The downstream titanium dioxide paint and coating industry has also been affected by the inventory backlog, which has reduced production and production, production, and inventory, which has also caused the titanium dioxide market to decline. In the first quarter, the price of rutile titanium dioxide dropped all the way, and the overall demand for titanium dioxide was weak, and the sales volume grew slowly.

In the second quarter, prices of raw materials for coating materials swept the market, and Dow, BASF, DuPont and other major raw material suppliers increased their chemical prices. This increase was mainly due to rising raw material prices and increased costs, resulting in insufficient earnings. On the other hand, under the stimulating of the country's favorable policies, after adjustment, China's paint industry as a whole showed signs of recovery, demand for raw materials has increased. This kind of rising trend continued into the third and fourth quarters, which brought greater pressure to the downstream paint industry.

In the second half of the year, corporate losses will inevitably increase. Due to rising prices in the Chinese market, Guangdong Province’s provincial economic and information technology committee in charge of the industry analyzed that in the first half of the year, the production costs of enterprises have steadily increased, and this trend is expected to continue in the second half of the year. In order to speed up the transformation and upgrading, while maintaining stable economic growth, it is actually forcing the "metabolism" of manufacturing.

"In short, we cannot overestimate the favorable situation in the second half of the year. We must not underestimate the difficulties and problems."

It is worth noting that the pillar industries have been affected. According to the data released by the Guangdong Province in the first half of the year, the total profits of Guangdong's electronic information industry and automobile manufacturing industry fell by 17.4% and 14.2% respectively year-on-year. Such declines have lowered the province’s industrial profit growth by 2.9 and 1.9 percentage points respectively. In Guangdong, the most important economic region in Guangdong and Shenzhen, the total industrial profits also fell by 5.7% and 3.3% respectively year-on-year.

“We are highly concerned about the economic situation in the second half of the year and Guangdong has done a stress test. Since most of Guangdong’s industrial products are rigid demands related to clothing, food, housing and transportation, we believe that the situation in which the economy is out of control is unlikely.” Guangdong Economic and Information Commission An official told reporters.

Although the company's production and operation faced great difficulties and the loss faced an increase, most of the industry's profits continued to increase in the first half of the year. "From January to May, the province's industrial enterprises above designated size achieved a profit of 160.44 billion yuan, an increase of 7% year-on-year, an increase of 3.6 percentage points from January to April, and 28 industries in 37 industries in the province have realized an increase in profits."