Analysis of the Development Trend of 2012 Industry from the 3 Situations of Coating Market

Although China's paint industry does not attract attention like the pillar industry, it provides an important guarantee for the development of pillar industries. 2011 is the first year of the new “Twelfth Five-Year Plan”. New national policies, new directions in the market, and new developments in the industry have also brought the dawn of the paint industry. With the introduction of the “Twelfth Five-Year” development plan for the paint industry, the development of the paint industry in China has reached a new level.

Most of 2011 has already passed. Looking at the paint market in the first half of 2011, the author believes that it can be summarized in three points: the price increase of paint products, the growth of paint production, and the national policy standards. While experiencing the surge in raw materials and labor costs, the overall growth rate of China's paint production in the first half of 2011 has slowed down, but in some places it has doubled. In addition, the national "Twelfth Five-Year" policy and the continuous introduction of a number of coating standards have promoted the further development of the environmental protection process of the paint industry.

"Increase price surge" strikes

In the last two years, following the financial crisis, international crude oil prices have continued to soar. In order to absorb the unfavorable factors caused by rising raw material prices, Jordan Coatings, a world-leading professional coating manufacturer and supplier, has increased its price since March 1 this year. The price of products in Europe, the Middle East and Asia; Akzo Nobel, the world's largest coating manufacturer, also announced that its all coating products sold in China are raised by 10% to 20%. Before these two paint giants have increased their prices, the paint industry’s price increase momentum has become apparent. The increase in raw materials, labor costs, logistics costs, and the rise in inflation, environmental costs, land costs, and capital costs have brought unprecedented pressure on paint companies. The purchasing costs of the upstream market increased, and the downstream market demand was low. Such a severe inflation situation cast a shadow on coating companies, especially the enterprises with poor production technology, the meager profits, and the unfavorable factors in the market brought the company Unprecedented competitive pressures.

Paint production grows steadily

In 2008 and 2009, despite the impact of the global financial crisis and economic recession, the paint industry in China still maintained a relatively high growth rate. The output increased from 3.83 million tons in 2005 to 9.9663 million tons in 2010, making it the world's largest Paint production and consumption of large countries. In 2011, in the face of the rising tide of paint prices, China's paint production is still growing steadily. According to relevant statistics, as of June 2011, a total of 4,833,581 tons of paint were produced in the six major areas of the national paint industry this year, an increase of 20.64% over the same period of last year. The “Twelfth Five-Year Plan” of the paint industry pointed out that the domestic economy will continue to develop at a relatively high speed during the “12th Five-Year Plan” period. The paint industry is expected to maintain an average annual growth rate of 10% due to the demand from downstream industry and civil use. With growth, production will increase from 7.55 million tons in 2009 to 12 million tons in 2015.

Many paint standards introduced

With the continuous increase of competition in the paint market in China, the blooming of small and medium-sized paint companies has brought invisible pressure to the entire paint industry. The indiscriminate fishermen are still emerging, and the paint market is on the verge of crisis.

On January 24, 2011, the Shenzhen Municipal Human Settlements Environment Committee formally issued the “Notice on Launching the Remediation of Volatile Organic Compounds in Furniture Manufacturing Enterprises” to various furniture manufacturing enterprises in Shenzhen, which is a strong target for Shenzhen's upgrading of the furniture industry. The sex document shows the determination and confidence of the Shenzhen Municipal Government and the Human Settlement Committee in controlling the pollution of the furniture industry. It also provides strong support for the environmental protection promotion of furniture companies and furniture coating companies. There are also environmental protection standards such as "Restrictions on Harmful Substances in Anticorrosion Coatings for Construction Steel Structures", "Restrictions on Hazardous Substances in Building Waterproof Coatings", and "Standards for the Drafting of Interior Decoration Design for House Buildings", which also show that the state is concerned about the environmental protection of the paint industry. The governance resolve of the problem. However, due to the chaos of paint sales, the poor quality of paint and paint products, and the prevalence of counterfeit and unfair market conditions, the relevant national authorities also implemented 14 national mandatory standards related to paints on August 1, 2011.

“Eleventh Five-Year Plan” is a five-year extraordinary development in the coatings industry. China’s paint industry is driven by the rapid growth of real estate, automobiles, ships, transportation, transportation roads, and home appliances. The total production volume increases by double digits every year. The rapid development shows the continuous rise of output and strong development momentum. During the “Twelfth Five-Year Plan” period, the state’s thinking on the development of the coating industry is to develop environmentally friendly coatings represented by water-based coatings, increase the number of industrial coatings and special coatings and increase their product usage, and develop supporting construction processes to establish and improve coatings. Clean and civilized production process with inorganic pigments, energy-saving emission reduction standards, and vigorously develop circular economy. Market standards and maturity are not enough, and paint product standards lag behind. The formulation of paint product standards lags behind the rapid development of paint varieties. The standard of China's paint products lacks a unified and effective supervision and management means to make counterfeit and shoddy products rise all the time. This series of problems will be effectively resolved under the support of national policies during the “12th Five-Year Plan” period.

Xiaobian conclusion:

During the “Twelfth Five-Year Plan” period, when it comes to a strong national road of paint, the Chinese paint industry needs to do four things: It must have world-renowned enterprises and famous brands with international competitiveness; the per capita consumption of paint must reach the international level; The capabilities of the international two markets; the need for advanced enterprise management, good paint production equipment and technological standards, high labor productivity, and independent scientific research results are rapidly transformed into productivity.