People say that product prices, are derived from the price of raw materials, the wrong, which in the paint industry, is the most obvious phenomenon. However, many of the dilemma of paint products, are really derived from titanium dioxide and other raw materials wrong?

This year, the price of raw materials, paint a few times to deepen the paint industry sentiment, titanium dioxide, TDI, MDI, acrylic and other major raw material market price trend of the confusing, so that the paint industry faintly see the dawn of cost pressures decline. However, counterproductive, raw material prices did not as expected, have entered the price down channel, but always in high and volatile, and then continue to rise.

Has just been deeply “carcinogenic” whirlpool of titanium dioxide, in the industry strong “rumor”, by the international titanium dioxide giant gossip, Tenova, Japan’s Ishihara collective announced that since July 1 once again raised the price of titanium dioxide products, domestic enterprises There is no price adjustment action, but the major companies have no notice of price reduction; early in June to stop the TDI, recently announced by the China Chemical Co., Ltd. since June 15, will improve the North American and Caribbean WANNATE? TDI product prices, BASF announced since June 19 days, to improve the North American region TDI product prices; MDI products in the past two weeks, the price increase is more than 5%; and affected by supply and demand, after entering in May, acrylic products began a new round of price increases and so on.

Excess capacity and industry constraints is the main reason for the predicament

In the case of raw material prices to maintain volatility, the coatings industry will continue to be shrouded in cost pressures this year, production capacity and prices will be affected by the cost of sales will be affected by the price seems to be undoubtedly the status quo. But the refurbishment of the market to visit the staff feedback back to the situation is not the case, they said that the terminal, this year the paint market is indeed very serious, but not much of the relationship between raw material prices. Because the market price war is still prevalent, not affected by price increases, which caused the price war is the most important reason for excess capacity.

“The current paint market, reducing the supply of 50% of the product, the market may still be in a saturated state. Competition is so intense, how do we not fight the price war?” Although his This argument is more subjective inference, but from the data point of view, only January-April 2017, China’s cumulative production of paint has reached 5.9615 million tons, production capacity increased by 2.6%.

In fact, the demand for raw materials such as acrylic acid and titanium dioxide is consistent with the increase in paint production, and it is precisely the tendency of the coatings industry to guide raw materials to a certain extent and increase the tendency of raw material prices. The coexistence of the two in a certain range, determines the relevance of the interests, rather than inhibition. Moreover, compared with the impact of raw material prices, paint companies affected by the industry itself is much greater impact.

There are media reports that “because of the financing difficulties, less projects, policy pressure, and now the small and medium-sized paint business is not already closed down, that is, on the road leading to collapse.” Despite the results of exaggeration, but small and medium enterprises The current situation is difficult but also the truth. In the traditional coating products, homogenization of serious, worrying business; in the transformation and upgrading, but often stretched.

Now environmental protection is the industry trend, in order to seek a breakthrough, a lot of paint companies are in the direction of environmental protection to move closer, so water-based paint, art paint and other enterprises to get together in the field. But because of the lack of adequate financial support, there is no effective financing channels, making small and medium enterprises or because of forced support for water-based paint research and development into a financial dilemma, or for survival to consider, only the symbolic introduction of water-based paint concept, The name of the name of the first environmental protection, the main paint products.

In the hot art of paint, small and medium enterprises is also difficult to paint a little cake. Due to the lack of corporate reputation and brand influence, small and medium enterprises in the promotion of art paint products, and not to the big brands that have the inherent dealer channels can be arranged, only from the beginning of the investment agency, art paint high-end positioning, Store image and shop address (many require an area of ​​100 or so, configure the Red Star Macalline and other high-end stores) demanding, leading to high threshold agent, it is difficult to investment. And once the lower threshold, in the building materials market blossom everywhere, but also lost the product advantages, and ordinary paint products become the same competition.

Than the cut-off open source to create sustained vitality

Even in the layout of water-based coating, art paint and other environmentally friendly products in the field of great advantages of the mainstream enterprises, but also has a deep-rooted industry limitations. Paint industry every year so much capacity supply, are basically the domestic market in the effect, the proportion of exports is very small, the impact of the well-known domestic paint brand is also difficult to pass abroad, let alone set up factories in overseas. Although in recent years there are Boders and other foreign brands, overseas investment and construction and other acts, the paint industry also has the export action, but with the paint industry, the base is too small compared to the tiny. Therefore, the paint production capacity is difficult to open source, only in the domestic market continues to accumulate.

And then look at the field of paint raw materials, not only many have a wide range of overseas market resources, and enterprises also have a wide range of world influence. Among them, the titanium dioxide industry in 2016 production of 2.257 million tons, net exports of 531,000 tons, and exports maintained a growth rate of about 15%; TDI polyurethane industry is not much better, leading Wanhua Chemical not only in North America and the Caribbean The region has a factory, also became the world’s largest MDI suppliers, production capacity reached 2.04 million tons, accounting for about 1/4 of the global total capacity, so that China’s MDI MDI market to become the benchmark.

So, compared to raw material prices can affect the “throttling”, it is clear that the sale of “open source” on the industry’s impact is more critical and more far-reaching. So why the paint industry can not be more than a reference to the field of raw materials to learn more ways and rhythm of open source, but the total is not the main reason for the dilemma, and can not change the price of raw materials to heart, repeated containment. Further extension, there are many reasons that affect the paint industry, “going abroad” progress, the paint industry also has its own special nature, raw material prices is influential and so on the objective existence, but the downstream real estate industry, although less than the previous boom, but House prices are more and more expensive to sell, as the main brushing supplies, paint the price of the product did not have a substantial increase. But the furniture, bedding and other supporting housing supplies is more and more high-end, easily tens of thousands, more than ten million, ranging from millions, while the field of furniture is the downstream areas of the paint industry, thanks to the furniture products Flourishing, nearly two years of furniture paint sub-field to do particularly good.

To sum up, the coating industry’s dependence is too strong, too passive, creative poor. Always need to chase hot spots (real estate, furniture) to flourish, once attached to the object market decline, itself immediately sluggish. And this is not up and the price of raw materials is not much relationship, after all, with the economic development has been to a certain stage, the paint industry itself also has the demand for price environment. Therefore, the paint industry is not necessary every time the price changes in raw materials, “Pro enemy”, the raw material industry should not bear the “forced” paint industry such “charges”, or from the industry itself, more from the ” Open source “perspective, increase the industry’s creativity and sustained vitality.