With the successive construction of major petrochemical infrastructure projects in various regions, coatings are an indispensable auxiliary material for anti-corrosion projects. This market has performed well in April. Major coating companies have also taken measures to lower prices and promote new products to seize the market.
Paint companies have cut prices
In order to seize the market and activate dealers' enthusiasm for purchasing, many domestic paint companies lowered the ex-factory price of their products, driving the overall market price downward. Taking the epoxy zinc-rich primer as an example, the domestic mainstream market sales price in 2019 was 51.36 yuan / kg, but this year's price has dropped to 36.71 yuan / kg, a drop of about 28%.
Recently, the prices of paint products of Shandong Benteng Paint Co., Ltd. have all been lowered, and the price reduction of some products has exceeded 20%. It is understood that following the price reduction of Pentium Paint, Shandong Yizhan Technology Co., Ltd., Shandong Aohui Paint Group Co., Ltd., and Shandong Yili Paint Co., Ltd. also lowered the prices of some paint products by about 10%.
Not only in Shandong, Hebei Chenhong Paint Co., Ltd., Jiangsu Jiren Paint Co., Ltd., Huai'an Paint Factory and other manufacturers have also lowered their product prices by about 10%. From the perspective of the domestic coatings market, the competition in Shandong is the most intense. The price difference between local Pentium, Lehua, Qilu and other brand coatings is about 3%.
Dealers will compare the quotations of various manufacturers when purchasing, giving priority to products with low prices. In this way, the paint market competition eventually becomes price competition. Enterprises with large sales volume share low costs, and price competition has a comparative advantage.
Raw materials plunge is the main reason
There is another important reason for the enterprises to lower the prices of paints this time because the prices of raw materials have fallen sharply. Affected by the drop in crude oil prices, the current price of xylene, the main raw material for coatings, has fallen to about 3,900 yuan (ton price, the same below), a 10-year low, about 50% lower than the same period last year.
In addition, the prices of other paint production raw materials also fell.
The current market price of phthalic anhydride is about 4,800 yuan, down about 1,200 yuan from the end of last year; the market price of 200 # solvent oil is about 4,000 yuan, down about 3,900 yuan from the end of last year; the market price of benzoic acid is about 5,800 yuan, down about 700 yuan from the end of last year; The market price of phthalic anhydride is about 4,800 yuan, down about 1,400 yuan from the end of last year; the market price of fatty acid is about 5,900 yuan, down about 400 yuan from the end of last year.
The prices of raw materials for coatings have decreased in varying degrees. The price of xylene, which is the largest amount of use, is almost cut, and the cost support of coatings has weakened, and the price will inevitably fall.
Promote new products, grab market and guarantee performance
In addition to price reduction, some domestic paint companies have also taken other measures to seize the market to complete the sales task.
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