Recently, Valspar (Shanghai) Enterprise Management Co., Ltd. issued a price adjustment warning notice, stating that after the Chinese New Year, due to the increase of international crude oil prices and the impact of many upstream material suppliers announcing force majeure, production shutdown and maintenance, the prices of chemical raw materials have increased significantly again. If the materials continue to run at high levels, price adjustments will have to be implemented at the appropriate time and this warning notice is issued.
Early warning notice mentioned, compared to the end of 2021 many chemical raw material prices rose rapidly, including TDI rose 35%, UV and PE monomer rose 15%, solvent class rose more than 20%, butyl acrylate rose 35%, additives rose 15-30%, titanium dioxide at the beginning of the year up 1000 yuan / ton ...... these raw material price spikes and supply shortages undoubtedly brought enormous pressure, so that the coating business situation more difficult.
Borders, AkzoNobel and many other leading paint companies issued a letter declaring the rise
Chemicals since the beginning of the year to continue the trend of last year's price increases, the coating industry chain of emulsions, titanium dioxide, additives, face seasoning, resins, etc. is also an alarming increase, in response to the high pressure of costs, AkzoNobel, Baxter Bear, Borders and many other coating companies sent letters announcing product price increases, up to 60%, and a number of companies said that if the raw material increases do not stop, the price of coating products will also continue.
Kansai Paint: A price increase of up to 60% will be implemented from 1 April.
AkzoNobel Paints (Shanghai) Co., Ltd: Price adjustment for some products from 0:00 on 1 March.
BEHR (Beijing) Coatings Co., Ltd. Shanghai Branch: From 27 February, the "distributor supply price (including tax)" and "recommended retail price (including tax)" of BEHR's paint products sold in China will be adjusted accordingly, and the specific product adjustments and the adjusted price breakdown will be released after spring.
Huntsman: 40% price increase for silicone coatings.
Bardes: will be based on the trend of raw material prices, the price of decorative coatings products at any time, please do a good job of preparing for the start of spring dealers and friends.
Hebei Zhuo Bang Mingda waterproofing materials: the price of products to increase, up will no longer be made after the price. Modified asphalt waterproofing class coil in the original price based on an increase of 10%-15%; polymer class coil in the original price based on an increase of 10%-20%; waterproof coating class in the original price based on an increase of 10%-20%.
Exceed: Increase in prices for automotive refinish products sold in China from the current prices.
Xuanwei: Each of its business segments will adopt an aggressive pricing strategy to offset cost increases, with a 12% price increase for products in the Americas Group.
Uncertainty continues to fester, price increases to offset cost surges is the essence of survival
In addition, a number of leading paint executives said that there is a lot of uncertainty about the development of the epidemic and the market for raw materials in 2022, and there is a growing trend of price increases to offset cost increases in the future, in order to preserve the foundation of business survival.
John G. Morikis, Chairman, President and Chief Executive Officer of Xanthanwei, said that for the full year 2022, raw material costs are expected to remain high but slow year-over-year, and companies will continue to implement pricing actions to offset cost increases as appropriate.
Morten Fon, President and Chief Executive Officer of Jotun, said that market uncertainty remains, with the New Crown epidemic and raw material markets continuing to impact the business in 2022, and significant increases in raw material costs, making price increases and cost controls necessary. In the future, Jotun will also implement more price increases for its products.
AkzoNobel CEO Thierry Vanlancker said that trends vary by geography and market segment, and that a range of adverse effects from rising raw material prices will continue to be cut in the first quarter of 2022.
PPG will continue to increase its selling prices in the first quarter of 2022, as price increases in the fourth quarter of last year did not offset the impact of higher labour, transportation and other costs and higher raw material prices, said Michael McGarry, PPG and chief executive officer.
Robert W. Bryant, chairman and chief executive officer of Exceed, said that aggressive measures continue to be taken to offset these headwinds through the implementation of pricing and cost actions. Sean Lannon, Chief Financial Officer, said the 2022 plan is focused on closing the price cost gap through ongoing pricing actions.
The current surge in raw material 'price increases' continues, accompanied by a wave of 'stock-outs' due to geopolitics, epidemic backlash, force majeure and more. Whether it is Wanhua, BDF and other domestic chemical leaders to lead the high-end chemicals more rounds of continuous increase, or nearly a hundred kinds of raw material prices soared thousands to tens of thousands of yuan, or Dow, Comu, DIC, BASF and other overseas leading in the epidemic and force majeure catalyst under the shortage of supplies, are to the coating enterprises sounded the alarm. Before this trend is completely reversed, the road of price hikes in the paint industry for self-preservation will continue.
