Over-competitive overdraft future paint price reduction space

However, the problem that cannot be ignored is still serious. "There has been a big increase in profits in the paint industry, mainly due to lower prices for bulk raw materials." Sun Lianying, president of the China Coatings Industry Association, said at the 2014 China Coatings Industry Information Annual Meeting in Shenyang on August 27.
From a deep-seated point of view, the decline in raw material prices has lifted the total profit, reflecting that China's paint industry is still in the extensive development model stage,
soar coating enterprises
endo-growth momentum is far from being built. Over-reliance on raw material prices, after several years of rapid development, the paint industry quickly entered the "thin era." How to deal with the future, the industry is very confused.
prices of raw materials helped revenue and profits rebound
data show that china's paint industry in the first half of 2014 out of the 2013 downturn trend. Since March, China's paint production from the end of last year after four consecutive months of negative year-on-year growth began to rebound, the paint industry gradually recovered, the monthly growth rate of more than 8%. As of June this year, the country's total paint production reached 771.157 million tons, an adjusted increase of 10.29 percent year-on-year.
, Guangdong, Jiangsu, Shanghai, Hunan and Shandong ranked in the top five in the country, according to statistics on total monthly paint production in the provinces in the first half of 2014. Among them, Guangdong Province was 1.539 million tons, up 5.47 percent year-on-year, Shanghai was 910.5 million tons, up 19.56 percent year-on-year, and Jiangsu Province was 90.31 million tons, up 2.07 percent year-on-year, ranking among the top three in the country. The total production of three coatings accounted for 43.49% of the total production of paints in the first half of the year. In addition, Zhejiang, Sichuan, Henan, Hebei and other places paint production is also considerable, ranked second echelon.
, it is understood that the domestic paint production in key areas of paint production generally showed a month-on-month increase in the trend of the paint industry recovery is obvious. Among them, the year-on-year increase in paint production in Hunan Province was larger, 7.76 percent year-on-year in January-February, 13.15 percent year-on-year in March, 16.93 percent year-on-year in April, 21.48 percent year-on-year in May, and 22.15 percent year-on-year in January-June, the most dazzling province in the first half of the year.
addition, China's paint industry main operating income and total profits have also rebounded. According to the 2014 National Petroleum and Chemical Industry Economic Operation Report released by the China Petroleum and Chemical Industry Federation in July, the growth rate of main revenue and profit of fine chemicals continued to grow at a double rate from January to May 2014. In the first five months, tu, pigment manufacturing industry's main revenue growth of 13.8%, ranked second. Among profits, the coating and pigment manufacturing industry topped the list with 34.6% growth. In terms of the contribution rate of the chemical sub-sectors to revenue growth, specialty chemicals were the highest, at 33.3%, up 11.6 percentage points YoY, while the contribution rate of coating and pigment manufacturing industry was 9.2%, up 2.4 percentage points YoY. According to the report, China's paint industry investment is still at a high level, the first half of the growth rate reached more than 20%.
there is no demand, there is no production. Paint production jumped sharply in the first half of the year, with the primary supporting factor being a rebound in real economic demand. According to statistics from the National Bureau of Statistics, real GDP growth in the first half of 2014 was 7.4%, "overall mixed, mixed, and overall trends remain good". At the same time, some economic data indicators that are closer to paint consumption are brighter.
first of all, fixed asset investment to maintain a high level. Statistics from the National Bureau of Statistics show that fixed asset investment in the first half of this year was 6840.2 billion yuan, up 26.3% year-on-year. From the strength of the country's fixed asset investment, there are two major factors to pay attention to: First, since the fourth quarter of 2012, the National Development and Reform Commission has approved a total of trillions of yuan of investment projects, focusing on rail transit, roads, airports and other infrastructure projects. As the above-mentioned projects begin, the stimulus effect on the demand for various materials will be further revealed. Second, the "New Country 5" for residential construction to promote the role. If the "New Country 5" can really be put in place, increase the supply of ordinary housing in first-tier cities, speed up the planning and construction of affordable housing projects, it is bound to strengthen all aspects of housing construction, increase the total demand for paint materials.
followed by continued upward growth in manufacturing. Statistics from the National Bureau of Statistics show that in the first half of 2014, the value added of industries above the national scale increased by 9.9% year-on-year. Among the main steel-consuming manufacturing products, China Association of Automobile Manufacturers data show that the country's total auto production in the first half of 10.282 million units, up 6.7% YoY, China's auto sales in the first half of the year was 9.5981 million units, up 2.9% YoY, the overall performance was better than expected. In the future, the pace of recovery in the automotive industry is likely to accelerate further, and demand for petroleum and chemical products such as coatings will continue to expand.
, the first half of the year continued to decline in real estate, which is closely integrated with coatings. Statistics from the National Bureau of Statistics show that from January to June, china's real estate development investment was 3.06 trillion yuan, up 16.6% YoY, down 2 percentage points from January to May, and investment growth slowed further; May fell 2.4 percentage points; new housing starts fell 7.1% year-on-year to 924 million square meters, an increase of 2.8 percentage points from January to May; and commercial housing sales area of 400 million square meters, down 10% year-on-year, a decrease of 2.4 percentage points from the previous May. The real estate development sentiment index was 94.71 points in June, down 0.19 percentage points from the previous month, and the business climate index fell for the eighth consecutive month. "Overall, affected by macro-control, the first half of the real estate industry declined significantly. As the real estate regulation policy will not be relaxed, the second half of the real estate downward trend will not change significantly. Economists say.
experts at the 2014 China Coatings Industry Information Conference said that with the pace of urbanization in China accelerated, some natural villages are disappearing, new housing not only for
building coatings
demand for rapid growth, home appliances, furniture on the demand for paint is also growing. In addition, the internal and external wall re-painting market demand growth space is also very large. In contrast, the growth of domestic industrial investment has slowed the growth
demand
industrial coatings. Therefore, civil coatings will become an important engine to drive the growth of the industry.
As for the rebound in the paint industry, Sun Lianying said at the 2014 China Coatings Industry Information Annual Meeting held in Shenyang on August 27th that the volume of profits in the paint industry had increased significantly, mainly due to lower prices for bulk raw materials. From the sub-application field, the operating condition of civil coatings is better than that of industrial coatings, the original pattern of low profits of civil coatings and higher profits of industrial coatings is changing, and the two are gradually converse.
In addition, Li Ming-moon analysis that the first half of the profit to maintain a steady and rapid growth, in addition to coating raw materials and other upstream product prices continue to fall, for the middle and lower-stream paint enterprises to create profit margins, with the implementation of a series of national "steady growth" policy, enterprise sales maintained stable growth, as well as cost-cost upward momentum has been curbed, these comprehensive factors may promote the recovery of profits.
Li Ming-moon said, "But overall, China's paint industry is still facing serious problems, such as structural overcapacity, lack of comprehensive innovation capacity, which is why China's paint industry is still in the 'big but not strong' embarrassing situation, only after squeezing out some 'bubbles', it is possible to reverse the embarrassing situation." ”