Several factors affecting China's coatings market in 2015

Real estate regulation has limited short-term negative impact on the coatings industry

However, according to data released by the National Bureau of Statistics, the total output value of the national construction industry reached 18,075.
7 billion yuan in 2015, an increase of 2.
3% over the previous year.
Compared with the increase of 10.
2% in 2014, the total output value of the construction industry fell into single digits for the first time in 2015, and the growth rate dropped sharply, which worries the industry.
"With the vigorous development of the real estate industry in second- and third-tier cities and urban areas, the development space of my country's architectural coatings market will continue to expand.
" Is it certain that such words can be said?

In fact, the slowdown in real estate investment has been revealed as early as 2014.
The growth rate of real estate investment in 2014 was only 10.
5%, which has deviated from the fast track of 19.
8% in 2013.
By 2015, the national real estate development investment was 9597.
9 billion yuan.
A nominal increase of 1.
0% over the previous year (actual increase of 2.
8% after deducting price factors), the growth rate dropped 0.
3 percentage points from January to November.

National Real Estate Development Investment and Sales in 2015 (Data source: National Bureau of Statistics)

The state's macro-control on the real estate market has caused the paint industry, which is closely related to the real estate industry, to be affected to a certain extent, and the industry's growth rate has slowed down.
It cannot be denied that with the implementation of alternative policies such as the construction of affordable housing, the adverse impact of real estate regulation and control policies on the coatings industry may continue to decrease.
In the long run, my country’s urbanization process is still at an intermediate stage, and the real estate industry will still have a huge future in the future.
Development space, and the development prospects of the related coatings industry should also be optimistic.

On the other hand, as an important part of the building decoration industry, the residential decoration market has a profound impact on its sustainable development.
In 2008, the Ministry of Housing and Urban-Rural Development issued the "Notice on Further Strengthening the Management of Residential Decoration Supporting policies, guiding and encouraging newly-built commercial residences to be renovated in place or menu->

The repainting of old houses is hot, and the second renovation drives output growth

On August 28, 2015, the China National Coatings Industry Association "2015 my country Old House Recoating Development Seminar" was held in Shanghai.
At the meeting, how to build a standard framework for indoor recoating and the current technical development of the recoating industry were shared and discussed.
Trends and many other hot topics.

After more than 30 years of rapid development since the reform and opening up, the stock of my country's real estate market has increased substantially, and a considerable part of it has reached the time limit for the second renovation.
Sun Lianying, President of China Coatings Industry Association, once mentioned that the total area of ​​all buildings in my country has exceeded 60 billion square meters.
From the current structure of building stock, the area of ​​completed residential buildings at the end of the last century and the beginning of this century has gradually entered the release period of repainting of old houses.
This also means that the huge market capacity in the recoating field will be released one after another.
In the 34 years from 1981, when the Bureau of Statistics had statistics, to 2014, my country had built 62.
6 billion square meters of houses, of which 41.
6 billion square meters were residential houses, accounting for two-thirds.
The old house renovation market has huge potential.

On the other hand, with the increase in the stock of the real estate market, second-hand housing transactions are becoming more active, and a large number of secondary decoration needs will also be generated, which will bring good development space for the coating industry.
Under the two opportunities, the second decoration will become another opportunity for the continuous growth of the coatings market.
Wood paint, interior and exterior wall coatings, glass coatings, thermal insulation coatings, floor paints, auxiliary materials, waterproof coatings, etc.
The second repainting campaign has started.

Under this "recoating" revolution, many construction companies put forward plans for the "recoating" market a few years ago.
After subdividing products and arranging business, they then carried out corporate transformation and upgrading, and Nippon Paint refreshed its service projects, Akzo Nobel's Duluxjia easy-to-paint repainting services and other repainting services are widely market-oriented.

At the architectural coating salon held on October 12, 2015, the founder of the salon Meng Fanpei said that the survey of the recoating market in 2013 showed that the recoating cycle of domestic residential houses was about 6-8 years.
It is estimated that the recoating plan was planned for that year.
The number of residential buildings is not less than 3 million units, the consumption of architectural coatings is about 240,000 tons, and the annual growth rate of the market is higher than 50%.
In 2015, Jiantu Salon reviewed this data and found that the actual market development was faster than estimated at the time, which undoubtedly brought huge product sales to the coatings market and boosted the overall production value growth.

Recoating market considerations

The furniture market is "imbalanced between cold and heat", and the growth rate slows down under the wave of "oil-to-water"

In 2015, the Chinese furniture market was in a state of "cold and heat imbalance".
The "Wooden Furniture Manufacturing Air Pollutant Emission Standards" began to be implemented.
According to regulations, after 2017, Beijing's furniture manufacturing industry will completely ban the use of oil-based coatings, that is, paint spraying.
.
And this appeal is not only in Beijing, but the country has set off a trend of "oil-to-water", the furniture industry's growth rate has slowed down, and the market has declined.
On the other hand, the industry is competing for furniture, and the mentality of industry transformation and change is "hot".
New concepts such as customization, real estate, and e-commerce are emerging one after another.
The beginning of the transformation of furniture companies is not stable.

According to relevant survey statistics, from January to December 2015, the furniture manufacturing industry's production and sales rate was 98.
3%, an increase of 0.
5% over the same period in 2014; the export delivery value was 172.
01 billion yuan, a cumulative year-on-year increase of 5.
0%.
According to the above data, although the output of the furniture industry has maintained a growth state, which has stimulated the development of the coatings market to a certain extent, its acceleration has not been high, and under the wave of "oil-to-water", the quality requirements of coatings are more stringent.
This indirectly affects the demand for coatings, and perhaps this is also one of the reasons why the coatings industry in 2015 became the second low-speed growth period in the past ten years.

Some people in the industry said that the furniture industry in 2015 was both joyful and annoying.
On the one hand, companies and distributors went bankrupt, and on the other, home furnishing companies went public.
Although China’s furniture production capacity currently accounts for 25% of the world’s total, it has become the well-deserved first furniture manufacturing country.
Based on an average growth rate of 15% to 20% over the past three decades, by 2016, the total output value of my country’s furniture industry will exceed 13,000.
100 million yuan, this is undoubtedly a huge potential consumption power for the coatings industry.
As for the veracity of the data, we are on the sidelines for the time being.

 The automotive market is slightly sluggish, and the development of automotive coatings has greater resistance

As a downstream application industry of painting, automotive coatings refer to coatings applied to various vehicle bodies and parts such as cars.
This generally refers to coatings and auxiliary materials for new cars and coatings for vehicle repairs.
Automotive coatings are the most developed paint varieties.
In terms of performance requirements, automotive coatings are also the most demanding paint varieties.
Therefore, automotive coating materials are often represented as the highest level of coating industry development, and the development of the automotive industry has an impact on the automotive coatings market.
The pulling effect is also particularly obvious.

The consumption of residents in my country has entered the automobile era.
With the increase in residents' income and the decline of automobile prices year by year, the automobile coating market has also developed correspondingly while the consumption of automobiles is also increasing.
With the increasing number of cars in the country, the rapid rise of the automotive aftermarket will promote the increase in market demand for automotive repair coatings and automotive original coatings containing new materials and technologies.

In 2015, my country's automobile market showed a slight growth, and the growth rate was slower than the same period of the previous year.
According to statistics from China Association of Automobile Manufacturers, a total of 24,503,300 vehicles were produced in 2015, a year-on-year increase of 3.
25%, and 24,597,600 vehicles were sold, a year-on-year increase of 4.
68%.
The year-on-year growth rate of production and sales decreased by 4.
05 and 1.
92 percentage points respectively from 2014.

According to the editor, in 2013, my country's automobile production and sales were 22,116,800 and 21,984,100, a year-on-year increase of 14.
76% and 13.
87%.
In 2014, my country's automobile production and sales hit a record high, with a net increase of 1.
661 million vehicles and a net increase of 1.
5078 million vehicles over 2013.

From the above sets of data, we can see that 2015 is not a golden period for the development of my country's automobile industry, but rather a downturn.
Companies such as BASF and PPG have also predicted that automotive coatings will develop in the direction of powder automotive coatings, water-based/high-solid separation paint, etc.
However, the current industry’s promotion of powder coatings and high-solids standards have given rise to the development of automotive coatings.
There was a lot of resistance.

With policy support, ship coatings are in good shape

The harsh corrosive environment of the ocean has a very important impact on the operational life and navigation performance of ships.
In order to minimize the corrosion of hull materials, ships have adopted various protection methods from design to manufacturing, such as hull coating with protective coatings, sacrificial anodes or electrical corrosion protection, and the use of highly corrosion-resistant hull materials.
Among them, coating with anticorrosive coatings is the most extensive and convenient means of protection.
With the development of China's shipbuilding industry, the market space of China's ship coatings will also be further expanded.

According to statistics, in 2015, the nationwide shipbuilding completed 41.
84 million dwt, an increase of 7.
1% year-on-year; the number of new ship orders received was 31.
26 million dwt, a year-on-year decrease of 47.
9%.
As of the end of December, the number of orders for hand-held ships was 123.
04 million dwt, a year-on-year decrease of 12.
3%.
Previous research reports have analyzed that the total output of my country's anti-corrosion coatings is expected to reach about 4.
5 million tons in 2015.
Of course, this data is for reference only before the exact data is released.

As early as 13th, 2013, four ministries including the Ministry of Transport, the Ministry of Finance, the Development and Reform Commission, and the Ministry of Industry and Information Technology issued the "Old Ships and Single Hull Oil Tankers Early Retirement Implementation Plan" policy, and its implementation period will be extended to December 2017 31st.
This means that aviation companies are accelerating the pace of decommissioning old ships and ordering a batch of new energy-saving and efficient ship types, which is undoubtedly great for the development of ship coatings.

Nowadays, most of the domestic marine coatings market is still controlled by foreign companies, such as international coatings, Kansai coatings, PPG coatings and other large multinational companies; while local companies only occupy a small share, such as Shanghai Kailin, Xiangjiang Paint, Well-known local paint companies such as Jiangsu Jinling.
But overall, the situation of marine coatings is good.

Views such as "2015 is probably the year when large Chinese companies will face a full-scale crisis in the last ten years" are not new in the industry.
Looking at China's coatings industry in 2015, the development of various functional coatings has been both good and bad, and downstream Development has its own advantages and disadvantages.
2015 has passed and 2016 is ushered in.
As mentioned above, under the influence of the country’s “One Belt, One Road” and “old house repainting” and other market economic opportunities, the growth rate of the coatings market in 2016 has slowed down, but the market space is still very large.
Great, we also look forward to the better and better development of the coating industry in 2016.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http://