Rising raw materials have led to increased production costs in the coatings industry and reduced profit margins. As a result, the coatings industry is particularly sensitive to the rise in raw materials. A few days ago, the international titanium dioxide giants Ko Mu, Teno and Ishihara of Japan collectively announced that they would raise the price of titanium dioxide products again from July 1. Although domestic enterprises have not taken any price adjustment actions, major enterprises have not given any notice of price reduction. TDI, which stopped falling in early June, recently Wanhua Chemical announced that it would raise WANNATE in North America and the Caribbean from June 15? The price of TDI products, BASF announced to increase the price of TDI products in North America from June 19. The price increase of MDI products in the past two weeks is more than 5%. The news of the rise of these raw materials affects the hearts of every paint industry.

In the case of fluctuations in raw material prices, the paint industry will continue to be shrouded in cost pressure this year, production capacity and prices will be affected by costs, and sales will be affected by prices. But on the terminal, this year the paint market is indeed very grim, but the price of raw materials is not the main reason. Because the price war in the market is still prevalent and is not affected by price increases, the main reason for the price war is overcapacity.

Some people in the industry said, "Now the paint overcapacity in more than 50%, because overcapacity leads to vicious low-price competition. Competition is so fierce, how do we not fight the price war?" Although his statement is more subjective inference, but from the data point of view, only in January-April 2017, China's cumulative production of coatings has reached 5.9615 million tons, production capacity increased by 2.6.

In fact, the demand for raw materials such as epoxy resin, titanium dioxide, acrylic acid, etc. is consistent with the increase in paint production. To be precise, the paint industry has guided the trend of raw materials to a certain extent, increasing the tendency of raw material prices. The symbiotic relationship between the two in a certain range determines the relevance of interests, rather than inhibition. What's more, compared to the impact of rising prices of raw materials, paint companies are much more affected by the limitations of the industry itself.

According to the industry, "because of the problems of financing difficulties, few projects and environmental protection policy pressure, the small and medium-sized paint enterprises have either closed down or are on the way to bankruptcy." Although the results are exaggerated, but small and medium-sized paint companies are currently in a difficult situation is also true. In traditional paint products, high-end products need to be imported, low-end products are seriously homogenized, and the operation is worrying; in terms of transformation and upgrading, they are often stretched.

Now environmental protection is the industry trend, in order to seek a breakthrough, many paint companies are moving closer to the direction of environmental protection, so water-based coatings, art coatings, etc. become the field of enterprises. However, due to the lack of sufficient funds and technical support, and no effective financing channels, small and medium-sized enterprises are either forced to support the research and development of water-based coatings and fall into financial difficulties, or in order to survive, they can only symbolically introduce the concept of water-based coatings. In the end, in the name of environmental protection, the main paint products are still in the name of environmental protection.