Chemical giants raise paint prices, some listed companies are expected to benefit

Source: Financial website

A few days ago, the Bakers Group said that the prices of its major global coil and industrial coatings products would rise by 8%. PPG recently announced that it will implement a 10% price increase on all of its global industrial coatings products. Evonik Germany announced that it will implement price increases for its methacrylic resin product series, at least 10%, and some products will reach 20% -25%. Royal DSM announced that it will implement price increases for multiple brands of products. The effective dates of the price adjustments of several giants are January 1, 2019.

The rising prices of coatings raw materials are the direct reason for the increase in coatings prices. Also, the steady growth of downstream demand and the overall growth momentum of the coatings industry have formed sound support. According to statistics, the total output of the domestic coatings industry in 2016 was about 19 million tons, a year-on-year increase of 7.2%, accounting for about 29% of the global coatings market. However, the number of manufacturers in the domestic coatings industry is currently close to 10,000, most of which are small and medium-sized enterprises with relatively low output, and the industry is relatively fragmented. In the past two years, local coatings products have rapidly increased the penetration rate of the industry due to their high-cost performance. Leading companies are expected to increase both volume and price.