• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Mixing Equipment Directory

    The Wood Coatings Market

    Antimicrobial Coatings Market

    Additives Update

    Pigment Supplier Directory
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Hempel Launches Sustainability Framework: Futureproof

    ChemQuest Hires Rich Gibson

    New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site

    Axalta Launches Wood Coatings Mobile App

    Phoseon Technology Introduces Near-Infrared LED Lamps
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Axalta Launches Wood Coatings Mobile App

    Green Seal-certified Paint to Qualify for LEED v 4.1 Credit

    Sensory Analytics, The Bronx Group Partner for Russia/CIS Region Sales, Support

    PPG DELFLEET ONE Paint System Approved by Daimler Truck North America

    AkzoNobel Launches CERAM-A-STAR 1050 Select Color Program
    Additives
    Binders
    Pigments
    Solvents

    New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site

    Emerald Kalama Chemical Acquired by LANXESS

    Raw Material Suppliers, Distributors Part of Recent M&A Activity

    Final PV29 Risk Evaluation Produces Mixed Conclusions

    BYK Launches 2 Additives
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Siltech Corporation

    Shepherd Color Company, The

    Active Minerals

    Keim Additec Surface USA LLC

    Pilot Chemical Company
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Surface Finishing Mexico 2021

    Cleveland Coatings Society Zoom Meeting

    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Clariant Additives

    Keim Additec Surface USA LLC

    Pilot Chemical Company

    Eagle Specialty Products

    Siltech Corporation
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    China Reports

    Lower Profit Challenges China Coatings Industry

    ...

    Related CONTENT
    • New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site
    • VideoBite: Keyland Polymer Material Sciences
    • Axalta Launches Wood Coatings Mobile App
    • HIGH-PERFORMANCE ARCHITECTURAL AND INDUSTRIAL COLORANTS
    • PPG Completes VersaFlex Acquisition
    Arnold Wang, China Correspondent12.04.17
    Following stable growth of the Chinese economy, the coatings industry in China also produced more coatings in the first half of 2017, with total output reaching 9.6 million tons, a 10.5 percent increase over the same period of 2016. This fast growth was led mainly by quick development in infrastructure, real estate, home furniture and home appliances.

    Total sales for home furniture and home appliances both enjoyed double digit growth in the first six months of 2017. Both export and domestic markets showed positive fast growth in these two industrial categories. However, fast growth in downstream markets did not bring profit increase to coatings producers. As the total coatings output keeps breaking historic records, the profitability of the whole industry is actually decreasing at the same time.

    Tailor made and environment friendly home furniture is the new market trend. The Chinese government has set up four pilot areas which bans new investments on constructing new solvent-based coatings capacities which are less than 10 thousand tons per year. The four areas are Tianjin, Shanghai, Fujian and Guangzhou. 

    For coatings producer, new investments are needed for waste management or VOC control so that they can meet the requirements of new environment regulations and standards. And for downstream customers, this means their coaters need to be renovated so that they can adapt to the use of waterborne coatings or solvent-free coatings. This cost increase is difficult to be transferred fully to end-users because of fierce competition in the market.

    Not only Chinese coatings producers, but also the whole coatings industry worldwide is under pressure from continuous price increase on raw materials. Asia Cuanon’s Q3 financial report shows that the company’s total sales increased by 30.53 percent over the same period of last year. The prices for emulsion, titanium dioxide and PS materials increased by 20.68 percent, 53.17 percent and 34.36 percent respectively in this period. On the contrary, the prices of their PS decoration panel and architecture coatings were either stable or even lower than before.  So their profit for the first three quarters only grew by 4.46 percent over the same period of 2016. Asia Cuanon, which has its stock listed in the market in September, 2017, is a major producer and insulation panels and architecture coatings. The company also recently put their 250 thousand tons per year water borne coatings capacity into production in Chuzhou, Anhui province.

    According to  report released by China National Coatings Industry Association, the whole coatings industry’s profit decreased by 15.1 percent in China in the first half of this year, and 303 coatings companies did not earn any profit, and the number of unprofitable companies increased by 29.5 percent over the first half year of 2016. Reshuffling in the coatings industry will continue and will not stop until most unprofitable coatings companies retreat from the market or merge into other larger companies. But from another angle, the market is witnessing a fast growing period for some large coatings companies because of their easy access to financing and successful market strategies.

    3Trees(SKSHU) achieved 40.68 percent sales increase, and 72.19 percent profit increase in the first night months of 2017. Both their engineering coatings and home decoration coatings segments grew quickly. But sales growth did not bring profitability increase for 3Tress, and their gross margin decreased by 5.4 percent to 40 percent in the first 9 months of 2017 comparing with the same period of 2016. The company signed strategic partnership agreement with Evergrande, with the latter promised to purchase no less than 1 billion yuan architecture coatings in three years. Evergrande is one of the largest real estate developers in China. 3Trees also has inked agreements for constructing new coatings plants in Anhui and Hebei, which, when completed, will create the largest domestic architecture coatings company in China. 

    The waste release fee will be changed to environment protection tax from next year. And the total tax charged for waste release in China is estimated to be 50 billion yuan per year. Each local government will decide their own tax ratio. This change will take the waste control out of administration system and put it into legal jurisdiction, and some provinces such as Guangdong and Guizhou are planning to raise the ratios charged on waste release. Generally speaking, the environmental pressure will be even challenging in the future for coatings companies. This, in another way, encourages merger and acquisitions between coatings companies and develops economy of scale, and pushes those technologies which are lagging behind the market trend to retreat from the market.

    The resolves for the government to tackle environment problems is clear because the public will keep a close eye on the PM2.5 index and the pressure felt by the government is enormous. And it provides both challenges and opportunities for businesses. For example, the electric car industry is booming in China, and in less than half a year hundreds of electric car companies have been established in China, so the market is not short of money, and investors just need good projects, sometime even just a good concept. So although the automotive industry as a whole is growing slower than before, but growth in certain segments like electric car and SUV is leaping forward. In the coatings industry, fast development can be seen in powder coatings and UV cure coatings, both enjoying double digit growth in 2016. 
    Related Searches
    • led
    • china
    • waterborne
    • merger
    Suggested For You
    New Increase in Kynar Fluoropolymer Capacities at Arkema New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site
    VideoBite: Keyland Polymer Material Sciences VideoBite: Keyland Polymer Material Sciences
    Axalta Launches Wood Coatings Mobile App Axalta Launches Wood Coatings Mobile App
    HIGH-PERFORMANCE ARCHITECTURAL AND INDUSTRIAL COLORANTS HIGH-PERFORMANCE ARCHITECTURAL AND INDUSTRIAL COLORANTS
    PPG Completes VersaFlex Acquisition PPG Completes VersaFlex Acquisition
    Green Seal-certified Paint to Qualify for LEED v 4.1 Credit Green Seal-certified Paint to Qualify for LEED v 4.1 Credit
    IGL Coatings Wins Coating Specialists Of the Year 2021 IGL Coatings Wins Coating Specialists Of the Year 2021
    Sensory Analytics, The Bronx Group Partner for Russia/CIS Region Sales, Support Sensory Analytics, The Bronx Group Partner for Russia/CIS Region Sales, Support
    Hempel Acquiring Wattyl Australia, New Zealand Hempel Acquiring Wattyl Australia, New Zealand
    Q&A: The ChemQuest Group Q&A: The ChemQuest Group
    PPG DELFLEET ONE Paint System Approved by Daimler Truck North America PPG DELFLEET ONE Paint System Approved by Daimler Truck North America
    AkzoNobel Launches CERAM-A-STAR 1050 Select Color Program AkzoNobel Launches CERAM-A-STAR 1050 Select Color Program
    Raw Material Suppliers, Distributors Part of Recent M&A Activity Raw Material Suppliers, Distributors Part of Recent M&A Activity
    Nippon Paint Marine Launches Nano Antifouling Technology Nippon Paint Marine Launches Nano Antifouling Technology
    BYK Launches 2 Additives BYK Launches 2 Additives

    Related China Reports

    • Powder Coatings Market Share Expands in China

      Strong growth can be witnessed in the powder coatings market...especially in China, India and South-East Asia.
      Arnold Wang, China Correspondent 02.12.21

    • Coatings Market Recovering  from COVID-19 Since 2Q

      Coatings Market Recovering from COVID-19 Since 2Q

      Total investment for China’s real estate property market for the first seven months in 2020 increases by 3.4 percent over the same period last year.
      Arnold Wang, China Correspondent 11.10.20

    • Can Automotive Coatings Save the Market?

      Can Automotive Coatings Save the Market?

      The automotive market could be a bright spot as China begins to recover from the COVID-19 pandemic.
      Arnold Wang, China Correspondent 07.06.20


    • Coronavirus Pandemic Hits Domestic  Coatings Market

      Coronavirus Pandemic Hits Domestic Coatings Market

      The Chinese government showed great leadership in dealing with COVID-19, but the Chinese economy in the mid-term still faces serious challenges.
      Arnold Wang, China Correspondent 04.15.20

    • Further Reshuffling of Coatings Industry Continues

      According to a report released by China National Coatings Industry Association, total coatings output in the first 10 months of 2019 was 20 million tons.
      Arnold Wang , China Correspondent 02.19.20

    • Architecture Coatings Consumption  Shows Softening Signals

      Architecture Coatings Consumption Shows Softening Signals

      When regional expansion in China is completed, the architecture coatings market will enter a maturing stage.
      Arnold Wang, China Correspondent 09.30.19


    • Chinese Coatings Market Moves West

      ...
      Arnold Wang, China Correspondent 08.09.19

    • Powder Coatings Industry Enjoyed Positive Growth in 2018

      Powder Coatings Industry Enjoyed Positive Growth in 2018

      ...
      Arnold Wang, China Correspondent 05.31.19

    • China Coatings Market Keeps Upgrading in 2019

      China Coatings Market Keeps Upgrading in 2019

      ...
      Arnold Wang, China Correspondent 04.12.19


    • Domestic Companies Reshape CHINACOAT  2018 Blueprint Structure

      Domestic Companies Reshape CHINACOAT 2018 Blueprint Structure

      ...
      Arnold Wang, China Correspondent 02.11.19

    • Coatings Market Might Retreat Under Unfavorable External Environment

      ...
      Arnold Wang, China Correspondent 12.03.18

    • Container Market Provides Unique Growth Opportunities for Waterborne Coatings

      ...
      Arnold Wang, China Correspondent 10.03.18


    • Waterborne Wood Coatings Expands  Market Share in China

      Waterborne Wood Coatings Expands Market Share in China

      ...
      Arnold Wang, China Correspondent 08.10.18

    • Waterborne Refinish Coatings Market Shows Quick Growth in China

      ...
      Arnold Wang , China Correspondent 06.04.18

    • Overview of South Korean  Paint & Coatings Industry

      Overview of South Korean Paint & Coatings Industry

      ...
      Yogender Singh, India/Asia-Pacific Correspondent 05.04.18

    Trending
    • Nippon Paint Marine Launches Nano Antifouling Technology
    • AkzoNobel Publishes 4Q, Full-Year 2020 Results
    • Hempel Acquiring Wattyl Australia, New Zealand
    • AkzoNobel Launches CERAM-A-STAR 1050 Select Color Program
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    Breaking News
    • Hempel Launches Sustainability Framework: Futureproof
    • ChemQuest Hires Rich Gibson
    • New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site
    • Axalta Launches Wood Coatings Mobile App
    • Phoseon Technology Introduces Near-Infrared LED Lamps
    View Breaking News >
    CURRENT ISSUE

    February 2021

    • Mixing Equipment Directory
    • The Wood Coatings Market
    • Antimicrobial Coatings Market
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Clinical Trial Finds Metabolic Benefits for Polyphenols Formula
    JRF Technology Debuts Elderberry Oral Film Strip
    Danone Adds to Plant-Based Portfolio with Acquisition of Follow Your Heart Brand
    Coatings World

    Latest Breaking News From Coatings World

    Hempel Launches Sustainability Framework: Futureproof
    ChemQuest Hires Rich Gibson
    New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Previon, Spectrum Solutions Partner to Deliver At-Home COVID-19 Test
    NTT Research, Japanese Entity to Collaborate on Cardiovascular Disease Interventions
    Global Peripheral Intravenous Catheter Market to Reach $7.5 Billion by 2027
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Cyprium, Sentynl Therapeutics Ink Asset Purchase Agreement
    Pfizer Selects Seven Bridges to Support RNA Sequencing Data
    ACG Launches ACG Laboratories
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Afro Sheen Launches New Brand Initiatives
    Neopac Introduces Lightweight Plastic Tube
    Estée Lauder Companies Increases Investment in Deciem Beauty Group Inc.
    Happi

    Latest Breaking News From Happi

    PBA Opposes House Bill 2325 in West Virginia
    J.R. Watkins Tackles Pain with New Lines
    RB Launches Vanish Miracle
    Ink World

    Latest Breaking News From Ink World

    Etiflex Enters New Markets with Nilpeter FA-22 Installation
    Hydrocarbon Solvents Market to Surpass $8.1 Billion by 2030
    Lowe-Martin Adds 2 KODAK NEXFINITY Digital Presses
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Eaglewood Technologies debuts new anilox cleaning system
    INX International and VerifyMe sign supply agreement
    Soma partners with DTM Flexo Services
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Fiber Bond VE3 Technology Inactivates SARS-CoV-2 in HVAC Filtration Systems
    Citizens Provides $325 Million Senior Credit Facility to Nice-Pak
    Ontex Reports Lower Revenues
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    OrthoGrid Releases New Hip Replacement Software
    Nexus Spine Announces Availability of Spine Surgery Implants
    FDA OKs Brainlab's Loop-X Mobile Imaging Robot, Cirq Robotic Alignment Module
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Comercial Kywi Improves Customer Service, Front-Store Operations with Zebra Mobile Solution
    Global Printed Circuit Board Market Projected to Reach $69.32 Billion by 2027
    RFID Locks Market to Reach $9.93 Billion by 2027: Allied Market Research

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login