I'm sorry! Paint products will also start to rise in price!

Since October, many coating companies have begun to bear the rising cost pressure of raw materials and have announced adjustments to product prices. According to the statistics of Xiaobian, the paint companies that have announced the price increase of their products have Jiaboli, China Resources Paint, Mingyang furniture paint, Hongchang paint, Chuangyu Chemical, First Year paint, First State Chemical and so on. This time, the price of paint products has risen, which can be said to be expected by everyone, or it can be said to be unexpected by everyone.

To be expected, it is because the raw materials of coatings have been rising this year, and the cost pressure brought by it has overwhelmed enterprises, and coating enterprises must maintain the normal operation of the company through price increases; Unexpectedly, because the price of titanium dioxide, one of the important raw materials for coatings, has risen wildly this year. However, in the first few price increases of titanium dioxide, although some people speculate that the price of paint products will follow the "rising tide", coating companies will eventually choose to silence, bear and digest this huge cost pressure alone.

The reason why paint companies choose not to raise prices, or to maintain a good cooperative relationship with our customers, or to protect the basic interests of dealers, or to control costs by increasing technical investment... No matter what way, coating companies have worked very hard to ensure the stability of product market prices.

Enter the "gold nine silver ten" golden period, "rise! Go up! Go up! ..." Still become the main theme of the chemical industry, titanium dioxide, aniline, propylene glycol, polyurethane and other chemicals or their raw materials prices have risen significantly. This time, coating companies are no longer silent, because the soaring price of raw materials has seriously exceeded the business scope of the enterprise. Xiaobian can feel from the "price hike notice" of various enterprises that paint companies choose to raise prices, it is helpless, after all, the market is too tight, and enterprises need to live!

Back in 2015, the global titanium dioxide market downturn, enterprises repeatedly hit hard, under sales pressure, some titanium dioxide enterprises choose to shut down production capacity, reduce operating rates to adapt to the market. The sharp decline in supply has led to a rise in the price of titanium dioxide. In January this year, the price of titanium dioxide was about 10,000 yuan/ton, and by October, the price of titanium dioxide had risen to 14,500 yuan/ton, an increase of 45%.

And another raw material of paint - toluene diisocyanate, this year the price has also ushered in a stage of wild rise. In January, the market price of TDI was about 12,000 yuan/ton, after 10 months of fermentation, the current price of TDI is about 38,000 yuan/ton, an increase of 217%. It is understood that toluene diisocyanate is one of the main raw materials for the production of polyurethane, domestic basically self-sufficient, but since this year, Covestro, BASF, Mitsui Chemical these global TDI giants have closed production capacity, resulting in foreign TDI no supply, other regions have come to Asia to buy. Due to the strong "export", large inventory consumption, and tight domestic spot supply, TDI has been in an emergency situation of "no market with prices and no goods available" in the near future.

On the other hand, the promulgation of new transportation policies has also increased the pressure on coating enterprises to a certain extent. On August 18, 2016, the Regulations on the Management of Over-limit Transport Vehicles Driving on Highways were officially promulgated and decided to come into effect on September 21. Affected by the New Deal, the current automobile transport, sea transport, rail transport are reduced to varying degrees of tonnage, resulting in fewer cars and more goods, vehicle freight rises. It is understood that after the implementation of the new transportation policy, the cost of long-distance and short-haul transportation of coating enterprises has risen by 35%-38%.

With the rising price of raw materials, supply shortage, coupled with the impact of new transportation policies, the cost pressure of coating enterprises is increasing, and the adjustment of product prices is understandable.

However, the current titanium dioxide, TDI and other raw material prices are still rising, coating costs remain high, in this round has announced price increases in the coating companies, there are many companies said will continue to adjust prices according to the market. For example, Carpoly Group said that it does not rule out the possibility of further raising product prices under the premise that raw materials do not go down and continue to rise. Due to the soaring TDI market, which is seriously beyond the business scope of the enterprise, Hongchang Coatings said that it canceled all the special prices of curing agents and restored the original unified price, and it also said that it did not rule out raising the price of curing agents again in the short term.

In the future, whether the price of coating products will rise is unknown, but I hope that everyone can rationally look at the law of the market and jointly maintain the healthy development of the market.