How to solve the rising cost for powder coating & paint segments?

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Just entering 2022, the signs of rising raw material prices are becoming more and more obvious, and the pace of price increase of coating & paint enterprises is also closely followed. 

 

 

First, the prelude to the price increase of raw materials starts again. Just entering 2022, overseas leaders such as #Chemours #Tronox #Venator #KRONOS #TIPAQUE R-930 announced an increase of about US$ 300-400/ton in 2022, and more than 20 domestic companies such as #lomonbillions Group and CNNC Titanium also announced an increase of about 1000 yuan/ton in 2022. Both domestic low-end titanium dioxide and overseas high-end chlorinated titanium dioxide have been simultaneously increased, which is undoubtedly a double attack on the coating industry. At present, the mainstream rutile is 21,500 yuan/ton. 

In terms of resin, solid and liquid epoxy resin increased by about 3,000 yuan/ton in 2022, solid epoxy resin increased by about 2,000 yuan/ton in 2022, and polyester resin increased by 500-800 yuan/ton due to the influence of neopentyl glycol and #isobutyraldehyde in the upstream, and the supply was in short supply. 

In terms of emulsion, the upstream styrene-acrylic and other petrochemical industrial chain products are affected by the rising prices of crude oil, natural gas, etc., and the urgent supply, and prices are constantly rising. 

Auxiliary products, TGIC increased by 6 yuan/kg (6000 yuan/ton) in the New Year, and the supply was in short supply. Recently, BASF, #Chemours #Tronox #Venator #KRONOS #TIPAQUE R-930 , Dow, Toray Japan, Tosoh Japan, Japan Polyethylene Co., Ltd., DIC, Keleli, Japan Electrochemical, Showa Electrician, and other chemical enterprises successively issued price increase notices, with the highest increase of 16,790 yuan/ton. Related products include #epoxyresin and #curingagent #titaniumdioxide #dispersion #resin, #calciumchloridesolution #adhesive, and PVA.  

Facing of the rising tide of raw materials, how should coatings deal with it? Only the price increase can offset the cost pressure brought by the rapid rise of raw materials.

Overseas paint leaders have already started early warning. Giants such as Sherwin-William, PPG, and AkzoNobel have said that they will raise the product prices to offset the rising cost of raw materials in the future.

Under the background of rising raw material prices, will the coating prices rise further? We will wait and see. To contact the author for more details