China Coatings Industry Development Status and Trend Analysis

Judging from the current situation, 2011 can be said to have been the most difficult year for the Chinese coatings industry since 08. In 2010, China's paint output was 9.6 million tons. When all companies are planning to flex their muscles in 2011, a series of resistances will be felt and the Chinese paint industry will continue to be cooled. Judging from the statistical data, there is no problem for China's paint industry to break through 10 million tons of output, but the growth rate will certainly fall by a considerable margin compared with the previous two years.

The shrinking market and sharp rise in raw material costs were the biggest problems faced by paint companies in 2011, and have largely affected the profits and sales of most companies. However, because there are not many companies in the paint industry, the financial situation is not good, and the increase in labor costs has little impact on the entire industry. In fact, the paint industry is going through an extremely difficult year. The overall situation is much more serious than in 2008 and 2009. Especially in the second half of 2011, it is the most severe situation in the paint industry in the past 20 years.

The overall situation in 2012 should be better than in 2011. The government's macroeconomic regulation and control, especially the strict control of real estate, will be eased, and will increase the support for the manufacturing industry. If there is no major change in the world economy, the cost of raw materials will decline, the manufacturing costs of paint companies will decline, and the market will slowly recover.