Association Warning! Coating Factory Collective Price Increase!

Recently, the China Building Waterproofing Association issued the "Reminder Letter on the Quality Risk of Engineering Waterproof Materials", saying that at the beginning of 2022, the price of the main raw materials of waterproof materials (petroleum chemical products) has risen sharply by 30-60% year-on-year, but the market transaction price of finished products has not been The simultaneous rise has resulted in a 10-15 percentage point drop in the company's gross profit margin.

As can be seen from the above table, in the past year, asphalt increased by 36%, SBS increased by 30%, polyester tire increased by 43%, VAE emulsion increased by 57%, elastic acrylic emulsion increased by 39%, styrene-butadiene emulsion increased by 35%, isocyanate up 54%. According to public data, emulsion accounts for 50%-90% of the raw material cost of water-based waterproof coatings, and isocyanate accounts for 30%-50% of the raw material cost of polyurethane waterproof coatings. That is to say, the rise of raw materials has caused great cost pressure on coating companies.

The prices of various raw materials have risen wildly, and the comprehensive cost has risen by 30%!

In just a few pages, the current pressure of the coatings industry is clearly described, and the difficulties and hardships of coating companies are immediately visible. This is also in line with the recent feedback from many coating companies. Many responsible people said that the current situation is very serious, and the prices of main raw materials such as emulsions, resins, and pigments continue to rise, making coating companies on the verge of bankruptcy.

Pigment

Titanium dioxide: The current price is 20,800 CNY/ton, an increase of 15% over the same period last year.
Iron oxide pigments:
Iron oxide red 130 was quoted at 8,350 CNY/ton, up 23% year-on-year.
Iron oxide red 110 was quoted at 9,800 CNY/ton, up 19% year-on-year.
Iron oxide yellow 4900 was quoted at RMB 9,700/ton, up 19% year-on-year.

Phthalocyanine series pigments:
The price of phthalocyanine blue is 57,000 CNY/ton, and the price of phthalocyanine green is 64,000 CNY/ton, an increase of about 3%-6% year-on-year.

Solvent:
Toluene: The quoted price is 7,450 CNY/ton, up 25% year-on-year.
Pure benzene: the current price is 7920 CNY/ton, an increase of 18% over the same period last year.
Butanone: The current price is 12,166 CNY/ton, up 38% from the same period last year.

Resin:
The quotation of indoor polyester resin is 13,800 CNY/ton, up 10% year-on-year.
The quotation of outdoor polyester resin was 14,800 CNY/ton, an increase of 9% over the same period last year.
The price of alkyd resin is 13,000 CNY/ton, up 30% from the same period last year.

Lotion:
Styrene-acrylic emulsion: The current price is 9,800 CNY/ton, an increase of 22% over the same period last year.
Pure benzene emulsion: the current price is 12,600 CNY/ton, an increase of 17% over the same period last year.
Silicon acrylic emulsion: The current price is 12,900 CNY/ton, an increase of 8% over the same period last year.

Other:
TDI: up more than 30%.
Monomer: up 15%.
Auxiliary: Up 15-30%.
...

In order to survive, Nippon Paint, Meitus, Zhanchen and many other paint companies sent letters to increase

According to the incomplete statistics of the paint procurement network, the prices of most raw materials have skyrocketed compared with the same period last year. On the whole, the cost has increased by more than 30%, and some materials are in tight supply or out of stock, and the prices are still A variety of factors pushed up. Today's coating companies have dared not say that they can guarantee profits, and some even bluntly said that they have been unable to bear the pressure and have lost money. Therefore, they must increase prices to "survive".

Nippon Chang Runfa: From March 20, the price of some products will be adjusted.

Chigu (Beijing) Technology Group: Will moderately increase product prices in the near future based on changes in raw materials.

Guangdong Meitus Building Materials: Starting from 0:00 on March 15, the price adjustment of products is expected to be adjusted by 5%-15%.

Zhejiang Bridge Paint: From March 2, the prices of acrylic and epoxy products will increase by 5%, and the prices of alkyd and phenolic products will increase by 5%. Amino paint, Y02-1 white thick paint product prices increased by 1,000 CNY/ton, all thinners increased by 1,500 CNY/ton.

Zhanchen New Materials: Around March 10, the product price will be adjusted appropriately according to the market conditions at that time.

Nippon Paint: From March 1, it is expected to increase by 3%-10% for full-standard products such as interior walls/exterior walls/woodware/base materials/auxiliaries.
AkzoNobel Paints: Price adjustments for some products.
ACTEGA (Ataka): The price of water-based paint products has increased.
Kansai Paint: The price increase will be implemented from April 1, with a maximum increase of 60%.
BEHR: Make corresponding adjustments to the "dealer's supply price (tax included)" and "recommended retail price (tax included)" of the paint products sold by BEHR in China.
Huntsman: 40% increase in silicone coating prices.
Axalta: On the basis of the current sales price, the automotive refinish paint products sold in China will be raised.

Valspar: Implement price adjustments at the right time.
Sherwin-Williams: 12% increase in product prices for the Americas Group.
Lipamer: Continue to address these challenges by implementing price increases, improving operational efficiency and increasing manufacturing capacity.

Keshun waterproof: the waterproof series will be increased by 5%~30%, and the accessories series will be increased by 5%-10%.
Denmark's Flage Group: Starting from March 16, there will be different levels of price increases for all products.
Carpoly: To adjust the product supply price, the specific product category and the increase rate related to the price increase shall be subject to the notice issued.

3Trees: Starting from 22:00 on March 11, the prices of decorative paint products will be increased by 4%-12%. The price-adjusted products include latex paint, water-based wood paint, art paint and other categories. The specific delivery system shall prevail. From March 11, for engineering products, the internal and external wall coatings will be increased by 5%-15%, the base materials will be increased by 4%-10%, the waterproofing will be increased by 10%-15%, the floor coatings will be increased by 5%-15%, and the thermal insulation board / integrated Adjust the board by 5%-15%.

Bardex Group: Around March 11, prices will be raised for all furniture paint products.

It is worth noting that Bardex issued a price increase warning letter on February 9 this year, saying that international crude oil has exceeded 90 US dollars, and chemical raw materials have skyrocketed again from the historical high before the Spring Festival. Trend, the price of decorative paint products will be raised at any time. Facts have proved that the current price trend of raw material prices is indeed gradually rising. At present, the international crude oil price has exceeded 110 US dollars / barrel, and the intraday high has hit 114 US dollars / barrel, showing a strong upward trend. Some paint companies even asserted that "this will inevitably lead to another surge in the prices of various chemical raw materials".

Chemical raw materials are "rising", and the profits of coating companies are under pressure. Many domestic and foreign coating companies have sent letters to express their "protest". As mentioned in some price increase letters, upstream raw materials have soared, downstream market demand has been weak, and the coatings industry has viciously competed and trampled on each other. Due to the fear of downstream customers purchasing products from the same industry, they would lose their orders and would not dare to raise prices easily. Some companies have risen, but in the end they have the consequence of "increasing revenue without increasing profits". Some companies have not risen, but they have made a loss and quenched their thirst while walking on the tip of the knife.