China's paint industry 2016 trend: paint production growth slowed to the new normal.

As the world's second largest economy, China's economic stability so that the world's hot people give high hopes, but after decades of simple extensive economic development, China's economy in this key node encountered bottlenecks, to be precise, the growth rate is flat, in the market law and national policies under the guidance of the return to the right track. As a member of the traditional industry,
the
of the coatings industry? Of course, the paint industry can not be separated from these closely related issues: real estate slowdown, energy conservation and emission reduction, overcapacity and so on. Whether
coatings companies
, or paint dealers, only to the market has enough foresight, in order to meet the difficult transition period.China's paint industry 2016 trends: paint production growth slowed to the new normal
It is well known that China's paint market size is second to none in the world, with more than 20,000 large and small coating enterprises, including decorative coatings market size of up to 200 billion, but basically more than 94% of the share of Libang, Dolezal as the representative of the
latex paint
giant monopoly. Diatom mud has been touted for more than ten years, in fact, thunder and rain point small, can only be a piece of the high-end market, only 0.2% of this pot of cake does not fall, all nearly a thousand diatom mud enterprises in the grab of this 200 million not down the market, the fierce competition can be imagined. Typical investment is small, quick results created China's paint industry abnormal development, in the context of high gross profits who feel rich to earn, this good day should be near the end, with the growing environmental protection voice, small companies may be quickly eliminated, because in addition to imitation, they actually do not have any sustainable development capacity.
China's paint industry 2016 trend: paint production growth slowed to the new normal
In recent years, China's market economy continued to show weakness, the development of all walks of life are a little weak, the paint industry is also the same. In 2015, the introduction of the "most stringent environmental protection law" policy, coupled with China's economic downturn and the impact of the real estate industry, the development path of paint companies can be described as extremely bumpy. In 2016, the coatings industry continued the "severe" market trend, product sales are difficult to get rapid growth.2016-2021 China Paint
Paint
industry special research and investment value forecast report shows that in 2015, the total national paint production of 17.18 million tons, compared with China's total paint production of 16.4818 million tons in 2014, the output increased by 4.2%, sales increased by 7.1%, profit increased by 10.9%. Although all the data have increased, but all consistently indicate that the growth rate of paint production in 2015 is much worse than before. From January to September 2016, China's total paint production reached 13.4504 million tons, up 7.4% YoY, and the growth rate was basically flat in 2015, which indirectly reflects a phenomenon———
every year every year everyone is saying, "2016 is the most difficult year for paint companies", but which year is the real "toughest year" for paint companies? Perhaps, the paint industry is really year by year difficult to do it! Take 2016 as an example, under the pressure of "the most stringent real estate control policies", "supply-side reform", "rising raw material costs" and "environmental protection policies plus code", paint companies are struggling with heavy handcuff chains.
2016, under the influence of the global and China's economic downs down pressure,
titanium dioxide
prices have bottomed out rebound, from January to December, titanium dioxide set a "year-round rise" record. Faced with the rising market price of bulk chemical raw materials, industry experts shouted "I don't understand" and said that the chemical market can not be viewed rationally.
rising raw material costs, so that many paint enterprises are overwhelmed, it is difficult to maintain normal operations. It is understood that in 2016, nearly one-third of small and medium-sized enterprises in the paint industry are in a loss-making state, of which the number of enterprises eliminated due to capital turnover difficulties is not in the minority.
looking back at the coming year, the paint industry has experienced a "nightmare" that may continue for a long time to come. Here, the small editor needs to explain that "nightmare" is not a special refers to titanium dioxide or other chemical raw materials prices will continue to rise, after all, the law of the market still needs to be maintained, once the balance is broken, inevitably will have unpredictable consequences. Here, "nightmare" means that the state's efforts to clean up environmental pollution will continue to increase, "supply-side reform" will continue to be implemented.
have to admit that one of the main reasons for this wave of "failures" is due to the "extensive development" of paint companies. All along, the entry threshold of the paint industry is low, paint enterprises throughout the country, including the production of "low-end products" mainly small and medium-sized enterprises. Because they ignore the research and development of new products and technologies, resulting in the domestic paint market product homogenization problem is serious, backward overcapacity. However, in the "supply-side reform" vigorously implemented in the background, the paint industry will be intensified by various problems and contradictions, some small and medium-sized enterprises because of product quality at a disadvantage or face a severe survival test, if not seeking transformation and upgrading, can only face the risk of being eliminated.
as the saying goes: blessed, "evil" is not a single line. Although "supply-side reform" is beneficial to the development of the industry, but for small and medium-sized enterprises, especially low-quality small enterprises, is undoubtedly a head-on drink. Coupled with entering 2016, the market price of bulk chemical raw materials continues to rise, to small and medium-sized coatings enterprises bring huge cost pressure.
it is understood that China's current paint industry has about 80% of small and medium-sized enterprises, and this part of the small and medium-sized paint enterprises occupy most of the domestic paint market share. Under the influence of environmental pressure, supply-side reform and soaring raw material prices, more than 50% of these 80% of paint companies and more than 50% of small paint enterprises are facing bankruptcy.
2016, under the joint effect of a variety of "adverse" factors, paint companies have staged a "failure" of the play code, some of the enterprises that adhere to it also consumed a lot of cost pressure alone, heavy losses. In order to maintain the normal operation of enterprises, some choice price increases, some choice transformation, some temporary shutdown ... Can be seen, this year's paint market shuffle effect is obvious, some paint enterprises have been unable to withstand the pressure and choose to exit.