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China's anti-corrosion coating industry continues fast development

August 31, 2011

Output of anti-corrosion coatings accounts for 40.5 percent of total output of industrial anti-corrosion coating.

Research and Markets has published a new report titled, "China Anti-Corrosion Coating Industry Report, 2010-2011."

Recent years have seen fast-growing developments in China's anti-corrosion coating industry, with the producers numbering over 650 and the varieties becoming more multi-functional. In 2010, the output of industrial anti-corrosion coating realized 2.18 million tons, up 25.3 percent year-on-year, making up 22.6 percent of the total. In particular, the output of heavy anti-corrosion coating increased by 11.2 percent year-on-year to 1.59 million tons, accounting for 72.9 percent of the total output of industrial anti-corrosion coating.

By application, the anti-corrosion coating consists of concrete anti-corrosion coating, auto anti-corrosion coating, ship anti-corrosion coating, construction steel structure coating and wind power anti-corrosion coating. Because the concrete anti-corrosion coating market scale is influenced by the investments in the railway, road, bridge, port, power plant and chemical industries, the present demand approximates 50,000-100,000 tons per year.

In 2010, China's output of auto anti-corrosion coating registered 882,000 tons, accounting for 40.5 percent of the total output of industrial anti-corrosion coating. Moreover, domestic OEM coating and plastic parts coating market is dominated by international brands, with the market share of OEM coating occupying 75 to 80 percent. By contrast, the refinish coating market is occupied by home-grown brands, with the market share approximating 75 percent.

In 2010, the total demand of shipping industry of China rose by 7.9 percent year-on-year to 410,000 tons. In particular, the consumption for ship construction reached 220,000 tons, while that for ship repair touched approximately 190,000 tons. Due to the effects of the global financial crisis on the shipping industry, the ship anti-corrosion coating market is expected to maintain growth with the development of the shipping industry.

In 2010, China's output of container coating attained 100,000 tons, making up 4.6 percent of the total output of industrial anti-corrosion coating in 2010. Industrial heavyweights including COSCO Kansai Paint & Chemicals, Hempel, KCC and Chugoku Marine Paints have long been occupying a more than 90 percent market share of China's container coating market. However, the figure declined to 77 percent in 2009 due to the global economic chaos.

Since 2006, the construction industry of China embraced a new era for further development. In 2009, China's output value of construction steel structure coating industry hit RMB3 billion, up 12 percent year-on-year. In particular, multinational corporations hold the leading position. In 2009, the combined market share of companies such as Jotun, COSCO Kansai Paint & Chemicals, AkzoNobel, PPG and Hempel realized 24.8 percent.

In 2009, China's consumption of wind power coating market achieved 26,000 tons. Particularly, Hempel, Jotun, AkzoNobel and PPG are major tower coating providers, with Hempel ranking in first place in terms of market share. In addition, Mankiewicz, PPG and BASF are leading manufacturers in the blade coating market. Although Chinese equivalents are latecomers with a focus on the wind power coating market, many enterprises, such as Northwest Yongxin Chemical Industry, have taken the first step towards the industry.