The face of the crazy rise in raw material prices, including paint giants, including coating companies have raised the price of products.At the same time, the upstream raw material prices also led to coatings companies 'increase in profits and losses' and net profit growth slowed down or even negative and Not uncommon.Jotun previously released 2017 performance bulletin shows operating profit fell 23%, a sharp rise in raw material prices is the main reason for the decline in revenue; Ke shun waterproof released 2017 performance bulletin is not satisfactory, Net profit fell 17.77% YoY, while Chunghwa Paints slid about 70% to 80% in 2017 net profit due to raw material price increases.
In order to offset the cost pressure, a large number of enterprises including Sherwin-Wei, Akzo Nobel, Nikko, Haihong and others have all raised prices.
AkzoNobel packaging coatings once again announced that starting April 1, 2018 in the Chinese market for the full range of packaging coatings products to implement the new price policy, the main reason is still to offset the pressure of raw material costs continue to rise in its In its preliminary financial figures for 2017, the coatings industry is still facing challenges such as rising raw material prices and the negative impact of currency fluctuations.
Nippon Paint (Nikko) will raise the price and shipping costs of its generic coatings (architectural coatings, heavy duty coatings and automotive refinish), industrial coatings, paints and thinners, Among them, the price of solvent-based coatings rose 8%, powder coatings and water-based paint products prices rose 5%, while the diluent prices rose 10%, product prices will rise from April 1. In addition, the shipping costs have been February 21 Starting to rise.
On February 26, Haihong announced an increase in the price of some protective paint, ship paint, container paint, yacht paint and decorative paint products, said Michael Hansen, Group Executive Vice President and Chief Commercial Officer. 'In the past few months, we Every effort has been made to reduce the impact on customers due to the pressure from rising costs. We are working with raw material suppliers, R & D department and production department. However, the cost increase is a fact and the trend is also very obvious.
February 28, Sherwin coatings price increase notice, heavy industry and the Department of Coatings Marine Coatings announced that it will raise 25% of product prices, and in March 1, 2018. Xuan Wei said the company has done its best to work with raw materials Suppliers, production departments, research and development departments work together to reduce the impact of paint prices on customers, but a new round of price adjustment has exceeded the company's ability to withstand.
February 28, Jotun Coatings announcement that, due to the rising prices of important raw materials, including titanium dioxide, metallic materials (such as copper and zinc), polyester resins and eye-catching epoxy resin in such difficult In the situation, we have no choice but to further increase the price of paint products.
February 28, Japan issued a price adjustment Kansai Paint, said the decision to raise the relevant paint product prices starting April 1. With the strengthening of China's environmental protection policy and strong demand, titanium dioxide, acrylic resin raw materials, epoxy resin, etc. The shortage of raw materials is in short supply and demand, and the situation in the Asian and foreign markets is rapidly rising. The rise of the prices of other coating raw materials and raw materials coupled with the rise in logistics costs has put pressure on production costs to surge, which is beyond our tolerance.
Rising costs are one of the key words in the paint industry in 2017. Prices of raw materials for coatings have fluctuated by a few degrees since 2016. Market sentiment, the market for major raw materials such as titanium dioxide, TDI, MDI, acrylic, resins, emulsions and solvents Prices have risen sharply, putting huge cost pressures on paint manufacturers, and even after 2018, the price of raw materials has not yet entered the downward spiral and remains strong and concentrated.
After the Spring Festival, the domestic raw material prices again lift gains.Akema announced that from April 1, 2018, or under the existing contract permits, will be in the Asia Pacific region for its fluoropolymer products 6% to 9 %; On February 20, DSM Coating Resins announced that as from March 1, the prices for Epoxy resin cans (metal packaging) and coil coating resins will rise depending on the product 0.30-0.35 EUR / kg, or the contract allows; On February 20, Allnex announced that starting March 1, 2018, the company will increase its sales of solvent and waterborne acrylics, specialty resins and additives in the Americas Prices, starting March 25, 2018, the Company will implement price increases based on the development of raw materials for all amino crosslinked resins in other parts of Asia.