Coating market opens "price increase valve"

After visiting some building material markets and paint factories in Hebei province, it was found that the price of paint was all the way up, and the price increase was more than 10%. As early as the first half of last year, the prices of raw materials for coatings have risen. Since the beginning of this year, with the continuous rise in the prices of raw materials, the “price increase valve” for the coating market price has finally opened.

Li Guoding, chairman of Langfang Ronghua Decoration Engineering Co., Ltd., told reporters on April 10: “The prices of major raw materials such as titanium dioxide, solvents, and synthetic resins have all increased significantly. All major brand coatings prices have followed up. After the year, the price per barrel is almost the same. Both have risen by 20-30 yuan. When selling paints for major brands, if prices do not rise, they can only run at a loss."

In fact, in 2010 alone, the price of raw materials used to produce water-based coatings rose by 30% to 40%. Although major paint manufacturers in the world are trying to reduce costs, as international crude oil prices continue to soar, the operating costs of companies are high. In order to absorb the unfavorable factors caused by rising raw material prices, Jordan Coatings, a world-leading professional paint manufacturer and supplier, has increased its product prices in Europe, the Middle East and Asia since March 1 this year; Aksu, the world's largest paint producer Nobel, also recently announced that all its paint products sold in China will be raised by 10% to 20%.

The raw materials for paints are mostly petrochemical products and are vulnerable to the impact of international crude oil prices. The sharp rise in international crude oil prices has driven up the prices of basic raw materials such as olefins and aromatics. In addition, other raw materials such as epoxy resin, titanium dioxide, solvent, copper, etc. have also been affected by inflation. The price increase is very obvious, and the rising trend has not shown signs of abating.

Paint production companies also face the pressure of rising labor costs and production and operation costs. According to statistics, the average price of major raw materials for coatings rose by 10% to 60%. Therefore, paint companies can only make appropriate adjustments to product prices to offset the impact.

In addition to the raw material price increase, the price adjustment of refined oil has also increased shipping costs. For the previous 10,000 yuan, it is now necessary to pay more than 2,000 yuan in transportation costs. Li Guoding said: “Now the paint price has almost been increased by 10%, and the price of a 5-litre barrel of paint has risen by 30-40 yuan. Now it's more appropriate to buy it, because these goods are basically inventories. If the new products are listed, they will rise. The price range may be higher."

Xu Shouqi, a senior engineer in industrial products research, told reporters: The main price increase is paint now, with an increase of more than 10%. If corporate production costs increase, and the downstream market demand does not keep up, the profitability of paint companies will be greatly reduced.

In the survey, a number of decoration companies have stated that the current decoration market situation is not optimistic. On the one hand, due to the state's control policy on real estate, most people who buy a house wait and see; on the other hand, because of rising raw materials, unless it is some rigid demand, decoration The relative reduction in people. Compared with last year, the proportion of renovation projects they received this year has dropped by about 15%.

The purchase price of the upstream market has increased, and the downstream market has been in short supply. Such a severe inflation situation has cast a shadow on coating companies, especially the enterprises with poor production technology, and the meager profits, coupled with unfavorable market factors, have brought about Unprecedented competitive pressures.

"Although some companies have a certain inventory, they can maintain a certain market running time, but it can only be maintained for a month or so, the short-term terminal market demand is reduced, can not support the development of enterprises, companies can only take the path of innovation to break the predicament." Xu Shouqi Suggestions.

Manager Chen Jie of Langfang Jinsheng Energy Saving Technology Service Co., Ltd. also told reporters: “The only way for enterprises to keep their product prices is to pay close attention to energy saving and consumption reduction and to reduce raw material and energy consumption to ease the cost pressure caused by rising resource prices. A stable range. At the same time, the government should give appropriate subsidies to encourage enterprises to purchase energy-saving equipment to achieve the purpose of reducing energy consumption.” She also suggested that some SMEs with unclear competitive advantages could consider switching their development ideas to respond to the country’s Promote the development planning of emerging industries, withdraw from the original price war, strengthen the cultivation of the core competitiveness of enterprises, research new industries, new technologies, and strengthen and expand in the industry segmentation industry to further expand the company's development space.

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