Strong Demand in China's Architectural Coatings Market Will Trigger a New Upsurge

The business club reported on May 18 that paint is a kind of building material, mainly composed of film forming materials, pigments, fillers, solvents, and various additives. Coatings can be applied to the surface of objects using different construction techniques to form a solid film with strong adhesion, strength, and continuity. The film thus formed is called a coating film, also called a paint film or a coating. Architectural coatings are an important category of coatings. Interior wall coatings and exterior wall coatings are architectural coatings.

In recent years, the paint industry in China has been growing under the impetus of downstream industries such as real estate, automobiles, and ships. As one of the branch's architectural coatings, the paint industry has achieved great development under the premise of a good paint industry. It is understood that in 2010 China's total production of paint reached 9.666 million tons, an increase of 22.8%. Among them, the total output of architectural coatings was 3.519 million tons, an increase of 23.7% year-on-year, six times that of 2001. It can be seen that although China's architectural coatings industry experienced the effects of the global financial crisis in 2008, raw material prices, and pressure from the central bank to raise interest rates, its development momentum remains unabated, and it also maintains a relatively high growth rate.

In 2011, the output of architectural coatings will continue to maintain high growth. In 2010, the reason why China's architectural coatings maintained a high growth rate was mainly due to the status of the pillar industries of the real estate industry. The output of architectural coatings in China continued to grow at a rapid rate for 10 consecutive years. In addition to 2001, the annual growth rate of architectural coatings is over 10%. From 2008 to 2010, the annual growth rate of architectural coatings production is more than 20% for three consecutive years. The proportion of architectural coatings production to total coating production has remained at about 30% year-round. However, since 2007, the proportion of architectural coatings production to total coating production has steadily risen. In 2010, the proportion of architectural coatings production has reached 36.4%. However, there is still a big difference between developed countries such as Europe, America and Japan. The proportion of architectural coatings in Europe and the United States in the paint industry is more than 50%. Japan is slightly lower, and it is also maintained at about 40%.

At present, China's coating technology has been constantly reformed, the national spending power has been increasing, and the per capita use of coatings in China has also increased year by year. According to statistics, in 2010, the per capita coating usage was 7.2kg, the per capita architectural coating usage was 2.6kg, and the urban per capita architectural coating usage was 5.5kg, which was 6 times, 4 times, and 4.6 times that of 2001, respectively. The per capita growth rate of urban building paint usage is higher than the growth rate of per capita architectural paint. Taking into account the foreseeable future, the process of urbanization in China is accelerating, and the urban population growth rate will be much greater than the population growth rate. Therefore, it is worth imagining that the use of paint in China will be improved.

Although per capita use of coatings in China has grown rapidly in the past ten years, it is still far below the annual average per capita use of architectural coatings in Europe and the United States of 25 kg, and the global per capita consumption of architectural coatings is about 15 kg. Therefore, China's architectural coatings have great potential for growth in the latter part of the year. This is one of the major reasons why the international paint giants compete to compete in the Chinese market.

10 million sets of affordable housing will drive the development of the architectural coatings market. According to the requirements of the Central Government, China will start construction of 10 million sets of affordable housing in 2011. The total number of construction starts in the next five years will reach 36 million sets. Last year, various types of affordable housing started in China. It was 5.8 million units, and the number of tasks this year increased by more than 70% year-on-year. As an external insulation material that has a direct relationship with a building, it is bound to have a share. It is understood that there are several necessary guarantees for the reconstruction of 10 million sets of affordable housing and various types of shanty towns to be started this year, especially the implementation of affordable housing projects. The first is that land supply must be guaranteed. The second is the protection of funds. There must be huge capital investment and support. The third is the guarantee of production capacity, such as building materials.

As we all know, paint is an important branch of building materials, according to research, interior wall paint decoration effect in the overall decorative effect of the house occupies 80% of the weight. Taking a family as an example, if the home occupies an area of ​​70 square meters, according to industry standards, the coating coverage rate should reach 8.6 millimeters, about 17.67 liters of decorative paint. It is not difficult to see that the vigorous construction of social housing will greatly promote the interior paint market in 2011. In addition, as the nation’s building of affordable housing continues to increase, more and more residents will own their own houses in the future, and the home building materials market will also be greatly stimulated, presenting a prosperous scene. In addition, while the government is actively promoting the construction of affordable housing, in order to beautify the environment and protect the environment, various regulations and policies will be issued to standardize the development of exterior wall coatings. In a word, for the exterior coating that is an important part of architectural coatings, the construction of 10 million sets of affordable housing will drive the demand for exterior wall coatings.

Steady increase in the construction coatings market needs to balance energy-saving and emission reduction indicators. In recent years, the performance of coatings has been continuously improved, and consumers’ recognition of coatings has also been continuously improved. In addition, coatings are used in energy consumption in comparison with decorative materials such as stone and ceramic tiles. There are obvious advantages in terms of costs, etc. Therefore, in the field of building interior and exterior wall decoration, the amount of paint is increasing, and the penetration rate is getting higher and higher. In 2010, the coverage of architectural paints in units completed in China reached 4.6 kg/m2, which was 2.3 times that of 2001. On the surface, all parties in the market are developing in favor of architectural coatings. However, China promises to reduce emissions by 45% on the basis of 2005 and reduce energy consumption per unit of GDP by more than 20% by 2020. This is undoubtedly The paint industry has created a threshold, but people in the industry believe that although energy-saving emission reduction will increase the company’s production costs at this stage and increase the economic burden of enterprises, it is not optimistic about the economic benefits of the company in the short term, and consider it in the long run. However, energy-saving and emission reduction provides an important guarantee for the healthy development of enterprises in the future. Indeed, with the continuous improvement of people’s living standards, there is a deeper quest for quality of life. There is a higher demand for paint from the house and the air outside the house. Green and low-carbon life has already become a worldwide The inevitable trend of development, and now all the production companies have to do is only to comply with the development of society, although it is difficult to start, but it is for the coating company in the future to lay a solid foundation for the healthy development.

Today, more than half of 2011, in addition to architectural coatings continue to overcome the raw material prices, pressure from the central bank to raise interest rates, Zhang Shi believes that paint manufacturers should also improve the quality of China's architectural coatings from several aspects, first, improve the building The performance of the coating, the second is to increase the function of architectural coatings, the third is the artistic decoration of the paint, and the fourth is the most important to reduce VOC emissions. If paint manufacturers can do the above points, I believe that in the near future, our coatings will be very Fast catch up with foreign paint. According to the forecast of the experts, the output of architectural coatings in 2011 was 4.14 million tons, and the output of architectural coatings in 2012 was 4.87 million tons, up by 17.7% and 17.6% respectively from the previous year. As an architectural paint company, it is necessary to change its market strategy at an appropriate time and respond positively to the national affordable housing strategy. Only in this way can it fulfill its social responsibility while maintaining its competitiveness.

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