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Development trend of China's coating industry in 2016: paint production growth slowed to a new normal

2017-02-28

As the world's second largest economy, Chinese economic stability let the world suffering people's expectations, but after decades of simple extensive economic development, economic China bottleneck nodes in this key, rather is growth leveled off, back on track in the market rules and guidance of the national policy. As a member of the traditional industry, coating industry prospects how to paint the industry, of course, can not be separated from these closely related issues: real estate slowdown, energy saving, overcapacity and so on. Whether it is paint companies, or paint dealers, only the market has enough foresight, in order to meet the difficulties in the transition period.

Development trend of China's coating industry in 2016: paint production growth slowed to a new normal

As everyone knows, the world's leading Chinese coatings market size, there are more than two thousands of large and small paint companies, including decorative coatings market size of up to 200 billion, but basically more than 94% of the shares are in Nippon, Dulux as the representative of the latex paint giant monopoly. Touted diatom mud for more than ten years, in fact, small talk, only a share in the high-end market, only this big cake basin 0.2% does not fall, all nearly 1000 diatom mud does not fall in the 200 million enterprises to seize the market, fierce competition as can be imagined. The typical low investment and quick created abnormal development China in paint industry, high gross profit in the background who feel the money, the good times should be coming to an end, with the growing demand for environment protection, small companies can be quickly eliminated, because in addition to imitation, they are not any capacity for sustainable development the.

Development trend of China's coating industry in 2016: paint production growth slowed to a new normal

In recent years, China's market economy continued to show a weak state, the development of all walks of life are a bit powerless, the paint industry is also the case. 2015, people in the mouth of the most stringent environmental law policy, coupled with the decline of China's economy and the impact of the real estate industry, the development of paint companies can be described as bumpy road. 2016, the paint industry continues to be grim market trends, product sales is difficult to get rapid growth.

2016-2021 China special paint industry research and investment value forecast report shows that in 2015, the total output of 17 million 180 thousand tons of paint, paint Chinese compared to 2014 the total output of 16 million 481 thousand and 880 tons, output growth of 4.2%, 7.1% sales growth, profit growth of 10.9%. Although the number of data has increased, but they all agreed that in 2015 the growth rate of paint production is not as good as before. 2016 1-9 months, China's paint production reached 13 million 450 thousand and 400 tons, an increase of 7.4%, the growth rate in 2015 was essentially flat, which also indirectly reflects the phenomenon of China's paint production slowdown is the new normal.

Every year, we said, "2016 is the paint companies the most difficult year", can be what year is the paint companies real "difficulties"? Perhaps the paint industry is really a year to do! In 2016 as an example, in "the most severe the regulation of real estate policy", "supply side reform", "the rising cost of raw materials", "environmental policy overweight" under the pressures, paint enterprises like was brought heavy handcuffs anklet, struggling.

2016, under the influence of global and China's economic downward pressure, titanium dioxide prices have bottomed out, from January to December, titanium dioxide to create a full year record. In the face of large chemical raw materials market prices rising situation, industry experts shouted, do not understand, and that can not be used to look at the rational chemical market.

Rising costs of raw materials, so many paint companies overwhelmed, it is difficult to maintain normal operation. It is understood that in 2016 there are nearly 1/3 of the paint industry in the loss of SMEs, which was difficult due to cash flow problems were eliminated by a small number of enterprises.

Looking back over the past year, the paint industry is like a nightmare, and this nightmare, perhaps will continue for a long time. Here, Xiao Bian needs to explain, "nightmare" does not refer to titanium dioxide or other chemical raw materials prices will continue to rise, after all, the law of the market still need to maintain balance, once broken will inevitably occur, it is difficult to predict the consequences of. Here, nightmare refers to the country's environmental pollution retion efforts will continue to increase, supply side reform will continue to implement.

Have to admit that this round of closures, one of the main reasons is due to the extensive development of paint companies caused by. All along, the paint industry access threshold is low, paint companies all over the country around, many of them in the production of "low-end products" in the small and medium sized enterprises. Due to their neglect of new products, new technology research and development, resulting in serious homogenization of the domestic paint market products, backward production capacity surplus. However, the reform in the supply side to the implementation of the background, all kinds of contradictions and problems in the paint industry exist will be intensified, in part because the small and medium-sized enterprise product quality at a disadvantage or face a severe test of survival, if not seek to upgrade, can only be forced out of danger.

As the saying goes: "Curse" is not a single line Felicity never turns out in pairs.. Although the "supply side reform" is favorable for the development of the industry, but for small and medium-sized enterprises, especially the poor small businesses, is undoubtedly a blow and a shout. Coupled with the entry into 2016, the market price of bulk chemical raw materials is rising, to small and medium-sized coating enterprises


 
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