Raw Materials Soaring Squeeze Profits Paint Companies again Announced Price Increases!

The word price increase, in recent years in the chemical coating industry has been seen repeatedly, the heat does not diminish, whether the outbreak of the epidemic in 2020 or the epidemic regularly rebounded in 2021, the adverse impact of raw material prices on the coatings industry continued to ferment.

2021 is the year of the global chemical raw material market exhibition turbulence, raw material purchase prices have been at a high level, the supply of many key raw materials is in an uncontrollable The supply of many key raw materials is in an uncontrollable state!

Coupled with the epidemic backlash, environmental protection policy intensification, industry competition and other factors continue to increase, whether the coating industry upstream suppliers, or coating companies or downstream channel merchants are under obvious pressure, which ultimately led to the coating business is difficult to digest, the price of coating products and then rise.

It is understood that chemicals since the beginning of the year to continue the trend of last year's price increases, the coating industry chain of emulsions, titanium dioxide, additives, coloring materials, resins, etc. is also an alarming increase, in response to the high pressure of costs, Akzo Nobel, Kansai Paint, Baldushi, Carpenter and many other coating companies sent letters announcing product price increases, up to 60%.

In fact, the impact of rising raw materials on paint companies is obvious. The paint industry is one of the areas that are more affected by the rising prices of raw materials.

Due to the increase of raw material prices, the production cost of enterprises increased, profits decreased, some enterprises had to adjust product prices.

The price adjustment will also have an impact on the order quantity, which in turn will affect the company's profit.

Due to the significant increase in raw material prices, resulting in a corresponding increase in production costs of paint companies, the price of paint products lagged behind, and profitability was affected.

Of course, in addition to the impact of rising raw material prices on performance, the thunderstorm of real estate companies has also brought serious adverse effects to the paint companies.

Carpenter adjusted product supply prices from January 22, 2022

On January 1, 2022, Carpenter full renovation products division issued a notice of price adjustment warning for January 2022 full renovation products, said that in order to ensure the orderly operation and sustainable development of the company, to protect the long-term interests of your dealers, the division decided to adjust the product supply prices from January 22, 2022, the specific product categories involved in the price increase and the magnitude of the increase to the notice issued.

Carpenter said that in the past year, the Group took measures such as internal efficiency improvement, process optimization, policy regulation and other tax poles, with a view to minimizing or delaying the adverse impact caused by the significant increase and fluctuation of raw materials.

Through nearly a year of active optimization efforts, but still difficult to eliminate the adverse impact of rising raw materials and operating costs, normal production and operations are still greatly affected.

AkzoNobel increases prices from March 1

On February 10, AkzoNobel (Shanghai) Co., Ltd. issued a notice of product price adjustment, saying that due to the continuous rise of raw materials such as emulsions, titanium dioxide and solvents, in order to continue to improve the quality of products and services, after careful study decided to adjust the prices of some products. The price adjustment will be effective from 0:00 on March 1, 2022.

AkzoNobel CEO Thierry Vanlancker said: "Throughout 2021, we have successfully achieved six consecutive quarters of sales growth. Our team responded quickly to the approximately €770 million cost increase due to raw material price volatility and introduced strong pricing measures."

Based on this excellent performance, we are on track to deliver profit in 2021 at the same level as the previous year. Going forward, we continue to build on our efforts to continue to mitigate a range of negative impacts from higher raw material prices in the first quarter of 2022.