In the past two years, the prices of domestic paints and coatings have continued to rise, and the main reason for their price increase is the rise in crude oil prices. It is understood that the raw materials for paints and coating products are all derived from crude oil products, which are greatly affected by fluctuations in international crude oil prices. The rise in oil prices has forced the prices of paint raw materials to increase immediately, which has dealt a great blow to paint companies that are already struggling.
At the same time, fast-food consumption psychology also mobilized the city's low-end market. The low price is the biggest advantage of low-end products, so it is easy to open the market and capture the hearts of consumers in the low-end market, which can help companies to open the market well and return funds in the initial stage. It can be said that the future low-end paint market is a game of risk and opportunity. With the development of the enterprise, if it is still intoxicated in the low-end market, then it is likely to be a trap, and it will be accidentally put in the “low-end†mud in the future.
According to survey data from the National Bureau of Statistics, in 2009, the home improvement market in Hebei Province and Yinchuan City had a good momentum of sales, and the prices of most housing and decoration materials all increased compared to the previous year. Among them, the price of building houses and decoration materials in Hebei Province increased by 1.9%, while the paint dropped by 3.2%. The price of building houses and decoration materials in Yinchuan City rose by 1.9% from the previous year. However, the price of paint decreased by 1.6% over the previous year. In other words, after the collective price increase in the renovation of building materials, the paint and coating market has seen a concentration of “diving†in 2009.
The rural market is the second channel market for coating companies to expand. It is also a big cake for dealers.
The five major development trends in the paint market price fluctuations in all aspects of the pressure on the building materials industry has become a heavy pressure, rising oil prices have pushed up the price of raw materials, paint prices are almost upside down, the paint industry is facing a major reshuffle. According to statistics, there are 7,000 Chinese paint manufacturers. Comments about the big reshuffle in the coatings industry have often been heard. Before and after the financial crisis, it was proposed that the paint industry would reshuffle. However, because of the Chinese government's investment of RMB 4 trillion, the rapid growth of the Chinese paint industry in 2011 drove China into the largest paint country.
However, the situation in 2011 is different. To summarize, there are four factors:
Rising costs: The price of raw materials has risen, raising the cost of paint products. According to Fusite Paint (Beijing) Co., Ltd., since October 2010, the company's raw material emulsion, titanium dioxide, additives and other raw materials have appeared 10% to 30% of varying degrees of gains.
Demand decline: The national real estate market regulates and controls, reduces trading volume in a short period of time, affects the real estate market, and affects the related paint demand.
It is difficult to raise prices: China's paint market is heavily homogenized, allowing downstream customers to easily replace products, and to curb paint manufacturers, especially SMEs without product advantages, to control the price of their products.
Inflation: It will cause problems for all paint manufacturers. However, for a long time no technology has been invested in small and medium paint factories, 2011 will be a year of life and death.
"After the Chinese New Year, the price of paint per barrel rose by 20 yuan to 30 yuan, but the paint market profit is getting smaller and smaller. Such a bucket of 5 litre Dabao paint is now priced at 400 yuan. During the promotion period, customers buy topcoats. To send the primer, the profit of a bucket of paint is only 30 yuan, to remove the storefront, rent and other expenses, and finally only 5 yuan of profit space." March 6, Jimei home paint building materials factory Chen Hui said.
The profit space is shrinking and the production cost is increasing day by day. The prices of paint raw materials—solvent materials, titanium dioxide, rosin, emulsions, and auxiliaries are all closely related to the trend of oil prices. The additives used in the production of titanium dioxide are petroleum by-products, and solvent materials in coating materials are also petroleum products. With the recent sharp rise in international oil prices, the prices of these raw materials have also risen correspondingly.
“In addition to the oil price increase factor, the price of upstream raw materials titanium ore and titanium slag has doubled since October 2010. The raw material market is now approaching madness.â€
At the same time, fast-food consumption psychology also mobilized the city's low-end market. The low price is the biggest advantage of low-end products, so it is easy to open the market and capture the hearts of consumers in the low-end market, which can help companies to open the market well and return funds in the initial stage. It can be said that the future low-end paint market is a game of risk and opportunity. With the development of the enterprise, if it is still intoxicated in the low-end market, then it is likely to be a trap, and it will be accidentally put in the “low-end†mud in the future.
According to survey data from the National Bureau of Statistics, in 2009, the home improvement market in Hebei Province and Yinchuan City had a good momentum of sales, and the prices of most housing and decoration materials all increased compared to the previous year. Among them, the price of building houses and decoration materials in Hebei Province increased by 1.9%, while the paint dropped by 3.2%. The price of building houses and decoration materials in Yinchuan City rose by 1.9% from the previous year. However, the price of paint decreased by 1.6% over the previous year. In other words, after the collective price increase in the renovation of building materials, the paint and coating market has seen a concentration of “diving†in 2009.
The rural market is the second channel market for coating companies to expand. It is also a big cake for dealers.
The five major development trends in the paint market price fluctuations in all aspects of the pressure on the building materials industry has become a heavy pressure, rising oil prices have pushed up the price of raw materials, paint prices are almost upside down, the paint industry is facing a major reshuffle. According to statistics, there are 7,000 Chinese paint manufacturers. Comments about the big reshuffle in the coatings industry have often been heard. Before and after the financial crisis, it was proposed that the paint industry would reshuffle. However, because of the Chinese government's investment of RMB 4 trillion, the rapid growth of the Chinese paint industry in 2011 drove China into the largest paint country.
However, the situation in 2011 is different. To summarize, there are four factors:
Rising costs: The price of raw materials has risen, raising the cost of paint products. According to Fusite Paint (Beijing) Co., Ltd., since October 2010, the company's raw material emulsion, titanium dioxide, additives and other raw materials have appeared 10% to 30% of varying degrees of gains.
Demand decline: The national real estate market regulates and controls, reduces trading volume in a short period of time, affects the real estate market, and affects the related paint demand.
It is difficult to raise prices: China's paint market is heavily homogenized, allowing downstream customers to easily replace products, and to curb paint manufacturers, especially SMEs without product advantages, to control the price of their products.
Inflation: It will cause problems for all paint manufacturers. However, for a long time no technology has been invested in small and medium paint factories, 2011 will be a year of life and death.
"After the Chinese New Year, the price of paint per barrel rose by 20 yuan to 30 yuan, but the paint market profit is getting smaller and smaller. Such a bucket of 5 litre Dabao paint is now priced at 400 yuan. During the promotion period, customers buy topcoats. To send the primer, the profit of a bucket of paint is only 30 yuan, to remove the storefront, rent and other expenses, and finally only 5 yuan of profit space." March 6, Jimei home paint building materials factory Chen Hui said.
The profit space is shrinking and the production cost is increasing day by day. The prices of paint raw materials—solvent materials, titanium dioxide, rosin, emulsions, and auxiliaries are all closely related to the trend of oil prices. The additives used in the production of titanium dioxide are petroleum by-products, and solvent materials in coating materials are also petroleum products. With the recent sharp rise in international oil prices, the prices of these raw materials have also risen correspondingly.
“In addition to the oil price increase factor, the price of upstream raw materials titanium ore and titanium slag has doubled since October 2010. The raw material market is now approaching madness.â€
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