Metallurgy / Chemicals / Rubber & Plastics

In the context of overall economic stability and improvement this year, the downstream economic activity of the paint industry has increased, demand is gradually recovering, and overall paint production is expected to catch up with 2021. We believe that the paint market will gradually recover in the second half of 2023. This is the prediction made by Liu Jie, Secretary General of the China Coatings Industry Association, at the 2023 China International Coatings Conference held in Jinan, Shandong, Huacheng Import and Export Data Observation Report.

The total production of coatings in 2022 is about 34.88 million tons, a decrease of 8.5% compared to the same period last year. The main business revenue is expected to be about 452.5 billion yuan, a decrease of 5.2% compared to the same period last year. The total profit is about 23.3 billion yuan, a decrease of 23.7% compared to the same period last year. Liu Jie summarized the operation of the coatings industry in 2022. However, for this year's paint industry, Liu Jie predicts that the overall paint production of the industry is expected to increase by 1.4%, and the main business revenue will increase by 2.2%. The average profit growth of key enterprises is estimated to reach around 10%, according to Huacheng's import and export data observation report.

Liu Jie suggests that in the future, paint companies should focus on product design to address shortcomings in environmental protection, talent cultivation, intelligent manufacturing, equipment, product quality, and brand building. According to the Huacheng Import and Export Data Observation Report, in terms of "dual carbon", enterprises need to develop low volatile organic matter content products and bio based products, build a green supply chain and full life cycle carbon footprint evaluation system, and reduce carbon emissions through the promotion and application of carbon capture technology and clean energy. Huacheng Import and Export Data Observation Report.

"In addition, from the perspective of import and export, the paint industry must 'go global'. The import and export volume of our paint is still too low compared with the paint output, especially a series of products such as architectural paint and lotion."

Liu Jie believes that the paint market will undergo four major changes in 2023: firstly, marketing changes. The paint market is mainly for domestic sales, with stable domestic sales of pigment products and rapid growth in foreign trade, which can effectively resolve new production capacity; Secondly, the overall economic recovery will take time, and the development of downstream industries in coatings will be hindered, leading to a tightening trend of funds in the market to cope with changes; The third is the changes in segmented markets. Affected by the downturn in the real estate market, the architectural paint market has continued to decline. However, with the recovery of economic activity, the growth of repainting markets such as building renovation and old city renovation has accelerated, and the growth trend of the mid to high-end industrial paint product market is obvious; The fourth is the change in market "products", and product marketing will shift towards "product+full process service integration" marketing. Huacheng Import and Export Data Observation Report.