Raw material prices soaring paint prices face three major resistance

Due to the constant changes in the prices of raw materials, it has brought certain pressure to the paint companies. What are these three aspects?

In 2009, China's paint prices also experienced ups and downs. Starting from the most intuitive price of the market, you may be able to understand the changes in the paint market more clearly. Review the price trend of the national paint coatings and their raw materials in the past year.

Raw material coating cost pressure

At the beginning of 2009, the impact of the financial crisis initially appeared. More than 60% of small and medium-sized enterprises in the titanium dioxide industry have stopped production and semi-discontinued production. Titanium dioxide prices have been declining all the way. The downstream titanium dioxide paint and coating industry has also been affected by the backlog of inventory. Production cuts have been stopped, and inventory has been digested. This has also caused the titanium dioxide market to fall all the way. 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 nearly 5 months of adjustment in the first half of 2009, China's paint industry as a whole showed signs of recovery, and demand for raw materials increased. This kind of rising trend continued into the third and fourth quarters, which brought greater pressure to the downstream paint industry.

Paint prices rose quietly

Affected by the decline in prices of international basic raw materials and market supply and demand, the prices of paints throughout the country were generally lowered in the first half of the year, with some regions showing a rising trend. According to figures released by the National Bureau of Statistics, paint prices in the first quarter of Tianjin fell by 11.8%, and Qinzhou City in May. Coating prices fell by 11.6% year-on-year. In the first half of 2009, prices of Jilin coatings, inks, pigments and similar products decreased by 1.8%. In the first half of this year, prices of paints, inks, pigments and similar products in Liaoning rose by 2.6% year-on-year. In the third quarter, with the gradual recovery of the real estate market, the prices of paint and paint all over the country rose slightly. In August, the paint price in Beijing's building materials market rose slightly by 4%. Some building materials products have quietly begun to rise. As the price of raw materials continues to rise, paint companies have started to raise prices. In October, DSM announced that it would increase the price of polyester powder coating resins. The price increase ranged from 6-8% depending on the destination. The company pointed out that the price increase was mainly due to the steady rise in raw material prices since the end of the first quarter of this year. In the fourth quarter, the prices of finished paint products are still rising. The average price increase of building materials such as Nanchang Coatings exceeded 10%. The Spring Festival has always been the node for price increase of renovation materials. Years and years later, the prices of these two materials are also the general laws of the industry. On the one hand, there are major environmental factors. On the other hand, prices of raw materials, transportation costs, labor costs, and other aspects have risen, which has led to a rise in the price of paint. According to comprehensive statistics, the price of building materials and decoration materials in Hebei Province has increased by 1.9% in 2009, but the paint has dropped by 3.2%. In 2009, the price of paint in Yinchuan City decreased by 1.6%. The prices of paints in other regions generally fluctuate little.

Smooth coating market in 2010

Although the paint market in 2009 was under heavy pressure, due to the regulation of national policies and the strong domestic demand market, the domestic paint and paint market was not affected by the financial crisis and the overall development remained stable. With the economic situation improving, it is believed that in the coming 2010, domestic paint prices will continue to remain stable.

For market price fluctuations, several issues should be noted in the development of paint companies. First, we must not blindly engage in price wars and blindly expand market share by squeezing profits. It is undoubtedly a "drinking and quenching thirst." Paint companies should also strengthen technical investment, improve internal management, reduce costs, optimize profits, and at the same time strengthen the communication between manufacturers and distributors, in order to seek the dealer's identity for the company, and help companies open up market channels. The relatively stable market price is a good news for both paint manufacturers and consumers, and the domestic paint market can only achieve long-term, stable and sound development. We are looking forward to the Chinese paint market in 2010. After the baptism of the financial crisis, we welcome the spring opportunities and challenges of flourishing development.