The coating industry is facing a large-scale production reduction situation
the coating industry is facing a large-scale production reduction situation
November 30, 2010
[China coating information] zhangyongkai, general manager of the product center of Jinyin island group, disclosed to us, "according to the information we have obtained, the coating industry is facing a large-scale production reduction situation."
a person who had a close contact with AkzoNobel's raw material procurement department said, "paint giants such as AkzoNobel also plan to reduce production for two months in China's markets where soft materials have a long elongation after break, such as films." The person used "very severe" to describe the intensity of production reduction, and part of the reason for the reduction is that "the price of raw materials rises rapidly, and the terminal price is difficult to follow up"
AkzoNobel is the world's largest paint manufacturer and one of the world's top 500 enterprises. Its brand duluxpro has a market share of nearly 40% in the Chinese market. On November 8, the diversified base built by the company in Ningbo with an investment of 275million euros has just been announced. However, AkzoNobel's senior management expressed to the on the issue of rising raw material prices, "Indeed, we see that most of the inspection plans known in Europe and the United States are concentrated in the beginning of the third quarter compared with 2009. Due to the rise in the price of raw materials, it has also been found in the income statement that it affects our interests by 5%." the countermeasures we have taken are "flexibly adjust the market demand, make good use of the 0.0 drop until the adjustment is qualified by US $13/ton (15180000 tons); our own pricing policy of US $4.350/ton for the sea freight from Western Australia to China"
it is understood that Dulux did not adjust the price after the NDRC announced the price control and supervision policies
huangjunhua, general manager of Shanghai Guhua wall Environmental Protection Technology Co., Ltd., revealed to us that "for domestic enterprises, the pressure is even greater. Because the lotion enterprises that produce coatings are chemical enterprises, most of them can not start their work normally due to the impact of energy conservation and emission reduction and power cut-off, and the price of buying foreign lotion is very high."
according to Huang Junhua, the cost increases by more than 30%. Once the production is completed, it will be inversely linked to the terminal price. As for the terminal price, "if there is no price increase for Dulux, China Resources and other products, it will be difficult for the whole industry to increase prices"