The Prices of These Raw Materials Have Soared Across The Board

Recently, due to the sharp fluctuations in international crude oil prices, the prices of domestic chemical raw materials have generally risen sharply. The prices of raw materials such as resins, coatings, and waterproof materials, such as styrene, have increased by nearly 50% year-on-year; the prices of asphalt and emulsions have increased by more than 30% year-on-year. What are the impacts on downstream companies and how do they deal with them?

Chemical raw material prices soar across the board

The production cost of coating resin and other enterprises has increased greatly

Li Dajun, general manager of Zhejiang Puer Resin Co., Ltd. told reporters that the main raw material of their company's resin is styrene, which is extracted from petroleum. Because of the recent surge in oil prices, the price of styrene has risen from more than 7,000 yuan per ton to the current 11,000 yuan. , More than 12,000 yuan per ton, the cost of raw materials has risen by more than 50% year-on-year, and styrene, as the main raw material, actually accounts for 70 to 80 percent of the cost of the product.

Not only a resin company, but another printing and dyeing company is in a similar situation. It is understood that in the entire printing and dyeing process, dye costs account for nearly 40% of the total cost. Since the beginning of this year, the raw materials and cost prices of dyes have continued to rise, and the downstream printing and dyeing enterprises are also facing cost pressures.

In addition, the waterproofing and coatings industries are also under pressure from sharply rising raw material prices. According to the announcement issued by the China Coatings Industry Association and the China Building Waterproofing Association, in early 2022, the prices of the main raw materials for waterproofing materials have risen sharply year-on-year, and the growth rates of materials such as asphalt and emulsions are all over 30%. And most companies in the coatings industry are facing the status quo of losses due to the sharp increase in costs.

Several companies issue price increase letters

On March 3, Bauhinia announced a 6%-15% increase in all products sold from March 11. Orders that have not been placed before must be withdrawn by March 15 at the latest, and orders that have not been withdrawn will be executed. 

On March 11, Guangdong Bardez stated that from 17:30 on March 18, the price of all furniture paint products will be adjusted by 5%-15%.

On March 15, Carpoly announced that it will raise product prices from 20:00 on March 21, and the overall price adjustment is expected to be 5%-10%.

On March 15, Three Trees said that since March 25, the price of waterproof coatings will be increased by 15%-20%. Before that, 3TREES sent two letters in a row, saying that from 22:00 on March 11, the price of decoration paint products will be increased by 4%-12%, the interior and exterior wall coatings will be increased by 5%-15%, and the base materials will be increased by 4%- 10%, waterproofing increased by 10%-15%, floor coating increased by 5%-15%, insulation board/integrated board increased by 5%-15%.

Just on March 22, according to the official WeChat news of Keshun, the company issued a price adjustment announcement on March 21: due to the continuous rise in raw material prices, in order to protect the long-term interests of the majority of partners and achieve the long-term cooperation goal of peers, on February 21 From March 17th to March 17th, Keshun Industrial Construction Group, China Civil Construction Group, Repair Group and International Building Materials Division have successively issued price adjustment letters and notified their respective customers. In this price adjustment, asphalt coils and coatings have been increased by 5%-30%; polymer coils have been increased by about 10%; polyurethane waterproof coatings have been increased by about 15%; water-based coatings have been increased by about 20%.

In addition, there are AkzoNobel Paints, Nippon Paint, Huntsman, BEHR, ACTEGA (Ataka), Axalta, Oriental Yuhong, Beixin Building Materials, Chenguang Paint, Qilu Paint, Shuanghu Paint, etc. A number of companies have also adjusted the prices of their products.