Aksu, PPG, Kansai And Other Paint Factories 'Self-help' Price Increases!

Recently, the official website of Kansai Coatings issued a notice on "Revision of Freight Prices", saying that due to the extremely harsh environment of the logistics and transportation industry due to labor shortages and the increase in the number of deliveries, in addition, carriers continue to ask for price increases, coupled with the recent crude oil prices. Prices have risen sharply, and the rise in logistics costs cannot be curbed.

It is decided to increase the freight price from June 1st. The specific freight price adjustment range is: 30-70 yen/barrel for oil barrels, 20-30 yen/can for medium cans, and 10-20 yen/can for small cans.

In addition, coatings leaders such as AkzoNobel and PPG have also frequently raised their voices recently to hedge against rising raw material prices.

AkzoNobel Paints (Shanghai) Co., Ltd. issued a product price adjustment notice 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 research, it was decided that some products will be adjusted from June 1. Make price adjustments.

In fact, as early as the beginning of April, PPG, the world's second largest paint giant in global sales, issued a letter stating that from April 25, the tax-included dealer price and tax-included suggested retail price of PPG Master Paint's products will be raised. 

When it comes to the reasons for the price increase, it can be said that there are different opinions, but the price increase of raw materials and the shortage of supply are the consensus of everyone.

Since entering 2022, the tight prices of raw materials and upstream energy in the coatings industry chain have continued, and they have become more and more intense, which undoubtedly puts a lot of pressure on coatings companies.

Titanium dioxide: Since 2021, the price increase letter has continued, and the price has reached a new high in the past five years. At present, the operating rate is maintained at around 7 or 8 floors, and some manufacturers take the initiative to reduce the load.

Pigments: Since the beginning of the year, Huayuan Pigments, Jiangsu Yuxing Technology, Tongling Ruilai, Deqing Totian Sanfeng and many other pigment companies have sent letters to announce the increase. Among them, iron oxide pigments have been raised by 600 CNY/ton, and phthalocyanine pigments have risen by up to 2,000 CNY/ton. 

Emulsion: Since the beginning of the year, emulsion leaders such as Badfu, Hengshui Xinguang, Henghe Yongsheng have frequently sent letters to raise prices, and the raw materials of emulsions have continued to rise in price.

Epoxy resin: In terms of raw material bisphenol A, some plants in Shandong Lihuayi and Yanhua Polycarbonate have been shut down for maintenance, and the overall operating rate of the industry is 70% to 80%. At present, in terms of epoxy resin, the overall operating rate of the industry is 4-5 layers, and the supply is not sufficient.

For the current chemical industry, the continued high price is no longer the focus, and the ability to buy goods is the key.