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    Home > Coatings News > Paints and Coatings Market > Industry | 2019 Economic Operation Report of China's Coatings Industry and Opportunities and Challenges Facing 2020

    Industry | 2019 Economic Operation Report of China's Coatings Industry and Opportunities and Challenges Facing 2020

    • Last Update: 2021-03-28
    • Source: Internet
    • Author: User
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    2019 is an extraordinary year for the development of China's coatings industry, and also a crucial year for the 13th Five-Year Plan.
    In this year, the Chinese coatings industry and the majority of enterprises have conscientiously implemented the decisions and deployments of the Party Central Committee and the State Council, in accordance with the general tone of seeking stability and promotion, closely following the fundamental requirements of high-quality development, adhering to the new development concept, upholding the consensus on green development, and achieving The industry has stable operations, steady progress, and steady progress.
    It is not easy to achieve results.
    According to statistics, the total output of the coatings industry in 2019 was 24,388,800 tons, which was 23.
    77 million tons in the same period last year, a year-on-year increase of 2.
    6%; the main business income was 313.
    232 billion yuan, and the same period last year was 31.
    511 billion yuan, a year-on-year decrease of 0.
    6%; total profit It was 22.
    953 billion yuan, compared with 20.
    98 billion yuan in the same period last year, an increase of 9.
    4% year-on-year; the total export of coatings for the whole year was 218,600 tons, the export value was 682 million US dollars, the cumulative import was 185,600 tons, the import value was 1.
    359 billion US dollars, and both imports and exports fell.
    In-depth analysis of the above data, it is not difficult to see that in 2019, China's coatings industry is still showing a development trend of stability and change, and the improvement is still good.
    However, in the face of the complicated international situation and the uncertain trade dispute, import and export are obviously blocked; 2020 The new crown epidemic at the beginning of the year also had a certain production and operation impact on the development of my country's coatings industry.
    Looking at the economic operation data of the industry in 2019, the production capacity of the coatings industry has maintained a low level and steady growth, the main business income has declined slightly, and the total profit has grown rapidly.
    On the one hand, it shows that the average price of products in the coatings industry is still low, which has affected the industry to a certain extent.
    The overall level of main operating income; on the other hand, the rapid growth of total profits is related to the overall low operation of upstream petrochemical raw materials in 2019; again, the above data can also show the structure of key enterprises in the industry (see China Coatings Industry 100 Index for details) The adjustment has achieved remarkable results.
    From product supply to product service and technical service development, the market share of high value-added and green products has increased.
    This will also become the trend of future enterprise development.
    A brief analysis of the opportunities and challenges facing the development of the coatings industry in 2020 is as follows: 1.
    Opportunities 1.
    OpportunitiesThe policy of resuming production has promoted enterprises to reduce their burdens and facilitate their development.
    The new crown epidemic will be gradually brought under control in 2020, and the national industry and commerce will resume production one after another.
    In addition, the country has successively introduced various small and medium-sized enterprises support policies during the epidemic, effectively reducing the capital and policy problems faced by enterprises after resuming work.
    At the same time, as the country's production and life recover , Market demand has experienced a rapid blowout period in the compression and decline of the epidemic.
    During this period, trends in supply, demand, and prices will benefit production companies.
    The advantages of the development model of the park agglomeration have emerged.
    After the outbreak of the new crown epidemic, local transportation and logistics controls were urgently implemented in various regions.
    Some companies that resumed work earlier did not enter the park or were far away from the main raw material companies, so they could not resume normal production due to raw material logistics problems.
    From 2018 to 2019, the China Coatings Industry Association has done a lot of work on the entry of companies into the park and the construction of the coating park, forming a number of coating industry development clusters, and the joint development of upstream and downstream.
    The impact of raw materials and other issues on the resumption of production and work will also be a prominent feature of the future development of the industry.
    The prices of raw materials have dropped in stages.
    According to statistics from the Federation of Petroleum and Chemical Industries, the market prices of major petrochemical products showed a downward trend in 2019.
    The annual average price of Brent crude oil was US$64.
    26 per barrel, a decrease of 9.
    9% from the previous year; among the 39 inorganic chemical products monitored , The annual average price rose only 16 kinds, accounting for 41%; 84 kinds of organic chemicals, the annual average price rose only 14 kinds, accounting for 16.
    7%.
    For many products, both the month-on-month and year-on-year declines were seen.
    In the past year, the upstream organic raw materials of the coatings industry have basically been operating at a low level.
    The 14th Five-Year Plan will bring benefits.
    The year 2020 is the link between the 13th and 14th Five-Year Plans.
    The whole industry is studying and judging the 14th Five-Year Plan, which will determine the development direction of various industries in the next five years.
    The China Coatings Industry Association is also organizing this work, reviewing the goals and results of the 13th Five-Year Plan, and objectively studying and judging the future development direction of the industry in light of the country’s development direction, policies and regulations, and market needs.
    Companies that innovate and adapt to the general trend will also be in the 14th Five-Year Plan.
    During this period, it developed rapidly.
    2.
    Challenge 2.
    ChallengeUnder the macro background of the adjustment of industrial structure, the market competition in my country's coatings industry is becoming increasingly fierce, and the pressure on enterprises will further increase, especially in terms of profit growth.
    In 2019, affected by the price cuts of upstream raw materials, the average profit of the coatings industry rebounded significantly, with a year-on-year increase of 9.
    4%.
    According to the overall forecast of the petrochemical industry, although the profit of the petrochemical industry has fallen by 14.
    9% year-on-year, the chemical industry will usher in a decline and then rise in 2020, indicating that there is still an upward momentum in the price of upstream bulk raw materials.
    How to reduce the impact of changes in raw material prices on business operations, companies should, based on their own characteristics and positioning, make more efforts in key product technologies, intellectual property rights, supply and demand relationships, and market layout to win the initiative and bargaining power in international trade.
    For example, many key enterprises in the industry that have published their annual reports have achieved rapid profit growth not only from the price reduction of raw materials, but also from the above-mentioned aspects.
    The association will carry out in-depth research on the 100 index to be released later.
    analysis.
    The new crown epidemic will still have a certain impact on the resumption of full production and import and export in the short term.
    The situation of the epidemic should not be underestimated.
    Although the country is under effective control, there is a crisis of global flooding at this stage.
    Therefore, this epidemic may develop into a longer-term, worldwide battle to cope with.
    Countries are bound to strengthen measures in customs import and export, transportation, inspection and quarantine, etc.
    This will also increase the negative impact on the already blocked import and export trade.
    The environmental protection situation remains grim.
    At the Central Economic Work Conference, the General Secretary particularly emphasized: At the end of this year, the goal of building a well-off society in an all-round way will be achieved as scheduled, but when the environmental pollution will be serious, the sky will be full of smog, the drinking water will be unsafe, and the environment will be dirty.
    How can the people recognize this? Well-off society? Therefore, environmental protection work will continue to persist, but the central government has also issued instructions on the one-size-fits-all and impractical work styles in the environmental management work of some government agencies, and will gradually realize a refined and precise environmental management system.
    It is inevitable for enterprises to seek green development.
    In general, in 2020, although the development of China's coatings industry will be affected by international and domestic aspects, the development trend is still closely related to the national economic development environment.
    The production capacity and market affected in the first quarter will also be affected in the subsequent period.
    The period of accumulation broke out, and the development throughout the year will continue to maintain the overall trend of steady progress, changes during progress, and worries during change.
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