Since 2016, the price of coating raw materials represented by titanium dioxide, resin, solvent, additives, lotion, TDI, etc. has continued to rise, disrupting the production, supply and marketing rhythm of the coating industry, and also promoting the production cost of coating enterprises to increase significantly in the short term. However, in terms of cost resolution, price increases are the most direct and effective way.

On October 13th, AkzoNobel Powder Coatings Group released the; Notice of Price Adjustment for AkzoNobel China Powder Coating Products; Due to the high market prices and indefinite upward trend of polyester resin, epoxy resin, titanium dioxide, and TGIC curing agent, we have made a very difficult decision to adjust the product prices.

In 2017, the powder coating industry continued to face challenges from both sides. Not only is it facing continuous pressure from rising raw material prices, but it also encounters many government bans on environmental protection& ldquo; 13th Five Year Plan; Ecological environment protection planning; 13th Five Year Plan; The introduction of regulations such as the work plan for the prevention and control of volatile organic compound pollution and the comprehensive action plan for air pollution control in the Beijing Tianjin Hebei and surrounding areas in the autumn and winter of 2017-2018 undoubtedly adds insult to injury to the procurement costs of some major raw materials.

AkzoNobel said that almost every month this year, we have received price increase notices from various raw material suppliers, and most of them have increased by more than 10%. Based on the above situation, our company has to challenge the product price again, and the increase will still vary depending on the product type.

AkzoNobel also stated that the increase in product prices has not exceeded the actual cost increase, and once there is a significant improvement in raw material costs, the price adjustment will be terminated.

Tu Jie reporter noticed that AkzoNobel is the first enterprise in the paint industry to implement price increases. As early as the end of October 2016, AkzoNobel announced price increases for powder coating products in the Chinese market. In addition, on March 10th of this year, AkzoNobel Taikoo Paint (Shanghai) Co., Ltd. decided to adjust the ex factory prices of some latex paints and some wood paints starting from March 15th, 2017, in response to the recent significant increase in raw material and transportation costs.

The continuous rise in raw material prices has also brought tremendous pressure to AkzoNobel, leading to a significant decline in profits. According to AkzoNobel's third quarter 2017 performance released on October 18th, the pre tax profit for the first three quarters was 1.22 billion euros, a year-on-year decrease of 4%; The net income attributable to shareholders was 757 million euros, a year-on-year decrease of 10%.

The report shows that the pre tax profit for the third quarter was 383 million euros, a year-on-year decrease of 13%. Mainly due to the impact of unfavorable exchange rates, production and supply chains are temporarily interrupted, and the demand for ships and protective coatings in the market is declining, resulting in profit pressure due to rising raw material costs.

The pre tax profit of the decorative paint business in the third quarter of 2017 was 95 million euros, a year-on-year decrease of 23%. AkzoNobel has taken measures to address the issue of rising raw material costs. The measures include increasing product prices and implementing additional cost controls.

The high-performance coatings business had a pre tax profit of 147 million euros in the third quarter of 2017, a year-on-year decrease of 26%. AkzoNobel has taken measures to alleviate the current obstacles faced by the industry, including raising prices and implementing additional cost controls.

AkzoNobel stated that it will take multiple measures to address current market challenges, including raising prices and controlling additional expenses. The pre tax profit for 2017 is expected to remain the same as in 2016, due to the continued decline in industry demand and the impact of supply chain disruptions.

It is understood that another powder coating company -& mdash; Danling Shanmushen Ruizhi Nano Technology Co., Ltd., a subsidiary of Guangdong Ruizhi Environmental Protection Technology Co., Ltd., announced on October 20th that from November 1st, the unit price of all powders will be uniformly increased on the basis of the original unit price. All white series will be increased by 2500 yuan/ton on the original basis, and other products will be increased by 2000 yuan/ton on the original basis.

In addition, Weifang Damei Powder Coating Co., Ltd. announced a price increase of 1000 yuan/ton for powder coatings starting from October 5th; Wenzhou Zhongsu Plastic Powder Co., Ltd. announced on September 29 this year that starting from October 5, 2017, the XE-79 series will be uniformly increased by 1250 yuan/ton on the original basis, the XP series will be uniformly increased by 2000 yuan/ton on the original basis, and the XE-37, 74, and 85 series will be uniformly increased by 500 yuan/ton on the original basis.

On September 25th of this year, Huaguang Powder Group issued a notice stating that all new customers, including small orders and those with payment terms of two months, will cease supply; For old customers whose funds cannot be received as scheduled, the supply of powder will be suspended; The customer group who sells at a loss must raise prices, otherwise supply will be stopped, etc.