Demand for water-based coatings has skyrocketed!

Recently, many ports have encountered "large ship jams", and about 400 container ships around the world have stuck in line at the ports. The global shipping system is facing the biggest crisis in 65 years. In the busiest ports of Los Angeles and Long Beach in the United States, more than 20 freighters are waiting for berths, and the waiting time can be as long as 12 days.

The price of containers from China to the United States has doubled tenfold. For the first time, the price of container ships has exceeded the high of US$20,000 per container, which has increased by 500% year-on-year. The price is basically close to air freight. Not only are prices soaring, but the situation of "a box of containers hard to find" is everywhere. In this case, the only solution is to continuously produce new containers, so that this year's container output has risen sharply, by at least 6% to 8%. The popularity of containers directly drives the explosive demand for water-based paint.

Hot demand, supporting water paint companies usher in a surge in performance

According to the Coating Purchasing Network, more than 96% of the world’s dry cargo containers and 100% of the refrigerated containers are produced in China. In the first quarter, only the three Chinese container manufacturers, namely CIMC, Orient International Containers, and New Huachang Group, accounted for the total production capacity. Which accounted for 82% of global production capacity. At present, more than 40 million containers are needed for global operations. This is not only a test for the domestic container industry, but also a great test for its supporting coatings and other materials.

The "China Container Industry Association VOCs Governance Self-Discipline Convention" clearly stipulates that domestic container manufacturing enterprises fully use water-based coatings, which has further promoted the comprehensive water-based coating of the container industry. Many water-based paint companies such as Jitai Co., Ltd., COSCO Kansai, and King Kong Chemical have received hot orders. Some companies have placed orders until the end of the year, and prices have also shown a slight upward trend. In addition, many companies have successively built new buildings and expanded production to strengthen market competitiveness while broadening sales channels.

KCC King Kong Chemical: Orders have been scheduled to the end of the year

The sales volume of water-based container coatings in the first half of the year increased by about 10% year-on-year. Due to the current difficulty of shipping a container, the orders of enterprises have been arranged to the end of the year, and many enterprises in the same industry are also the current situation. In addition, the amount of shipping exported containers is very small after delivery, so container products need to be produced and sold on a large scale, which is also a good thing for water-based container coatings.

COSCO Kansai: Paint sales increased by 120% year-on-year

COSCO International's mid-year report shows that the group's coatings business achieved sales revenue of 781.8 million Hong Kong dollars (about 650.5 million yuan) in the first half of the year, a year-on-year increase of 93%. Operating profit was HK$16.172 million, a year-on-year increase of 623.58%; segment profit before income tax was HK$51.16 million, a year-on-year increase of 41%; profit after tax was HK$47.218 million, a year-on-year increase of 36.51%, mainly due to the substantial increase in the sales volume of container coatings Caused by.

In terms of container coatings, as COSCO Kansai's market recognition in water-based coatings has steadily increased, the container manufacturing market has recovered and the container coatings business has grown further. During the period, the sales volume of container coatings increased by 120% year-on-year to 21,238 tons, and the sales volume of industrial heavy-duty anti-corrosion coatings including workshop primers was 9,014 tons, a year-on-year increase of 10%.

Jitai shares: container market sales revenue increased by 244.37% year-on-year

The container sealant and water-based base frame paint products produced by Jitai Co., Ltd. have always maintained a leading position with more than 50% of the global market share. At present, Jitai Co., Ltd. has reached cooperation with the container-building giants such as CIMC, Huanyu, Xinhuachang and Fuhua, as well as major global shipping companies and container leasing companies such as Maersk, COSCO Shipping and MSC. During the reporting period, the container market achieved a sales income of RMB 200.5295 million, a year-on-year increase of 244.37%.

Dulwich Coatings: To achieve double-digit growth against the trend in 2020

Since 2017, Dulwich Coatings has broken the industry monopoly that has been dominated by well-known coating companies in Western developed countries (Haihong, PPG, Sherwin-Valspar, Kansai Coatings, Intermediate Coatings, KCC) for more than 60 years. Its water-based container coatings The domestic market share once accounted for more than 70%. Dulwich Container Coatings has had a global market share of more than 42% for four consecutive years and is currently the world's leading container coating company. Dulwich Coatings achieved double-digit growth against the trend in 2020. Currently, Dulwich Coatings still ranks first in the container coatings market share in China, and it also ranks in the forefront of this field in the world.

From stalls to short supply, and then to "a container is difficult to find", the container market is extremely hot. At present, my country's monthly container output has reached more than 500,000 TEU, which is almost 2.5 times the average level in the past few years. The "14th Five-Year Plan" period is still an important window period for the development of multimodal transport in my country, so it is difficult to change this hot trend in the next 1-2 years.

With the advent of the peak foreign trade season, the ports of Europe, the United States and other countries and regions continue to be congested, and the peak season of the golden nine silver ten is approaching, and the supply and demand of the international shipping market is still tight. Global seaborne trade is expected to increase by 4.3% to 12.04 billion tons in 2021, achieving a V-shaped rebound. This situation also means that the popularity of water-based container coatings will be accompanied by it, and related coating companies in the industry will also usher in a bright moment of "really earning".