Kansai, Sherwin-Williams, Aksu and Other Paint Factories Collectively Raise Prices!

Upstream costs are high, and in order to transfer risks, price increases are undoubtedly the first choice. Does the price increase help? Undoubtedly useful, AkzoNobel's sales price increase in the first half of the year drove 16% growth, and PPG's sales in the first half of the year increased by 9.21% year-on-year, which was also driven by the increase in product sales prices, so price increases can bring high revenue, A number of international paint giants have also revealed their future price increases.

AkzoNobel said it will continue to offset raw material and other variable cost inflation (including freight) through pricing initiatives;

Axalta said the team was working constructively with customers to obtain the price increases needed to offset inflation;

Lipamer said it will continue to raise prices as needed to minimize cost pressures;

Sherwin-Williams said it will aggressively address inflationary pressures, with a 10% price increase for the Americas group from September 6 and significant additional pricing across its other two operating divisions (Consumer Brands Group and Performance Coatings Group) action;

Nippon Paint said that it will continue to increase sales prices, and will continue to promote profit improvement in the second half of the year;

PPG said it expects raw material costs to increase by about 10% year-on-year in the third quarter of 2022, and energy and transportation costs will also remain high in the third quarter, and will continue to prioritize further increases in selling prices in the third quarter.

But raising the price is not easy, it can be said that it is easy to send a letter and difficult to land. Looking at the cold market in the downstream, you can understand where the concerns of coating companies are. Compared with the monopoly pattern of the titanium dioxide industry, the high concentration of the resin industry, and the general concentration of emulsion raw materials in the hands of large state-owned enterprises, the coatings industry is obviously at a disadvantage.

Whether it is the frequent "excavation" of talents or the mutual "learning" of technology, it is determined that the coatings industry will go further and further on the road of involution. Then, with the emergence of more and more new concepts, people are also willing to take a share of the "new field", but the movements are inevitably deformed. "Pseudo-water paint" under oil-to-water, "garbage powder" under environmentally friendly powder, and various seemingly clever profit-making methods such as "holding your thighs", adhering to famous brands, and mixing genuine and fake are all going one way. The blind development model of black is really heart-wrenching.

Decades of homogeneous competition has become the norm, but this state of affairs needs to be changed urgently in the accelerated reshuffle in the post-epidemic era. It is still difficult for leading companies to resist risks. Official announcements frequently call for price increases, not to mention the status quo of small and medium-sized enterprises. In a state of "little people", it is even more powerless to increase prices, and they can only swallow their teeth. The upstream and downstream are simultaneously increasing the pressure. If the coatings industry is still in vicious competition, then the price increase letter is destined to fail, and all kinds of pressure can only fall on oneself, which cannot be transferred, and eventually become the last straw that overwhelms the camel.