Analysis report on the market situation and Prospe

In 2006, the capacity of cathode material enterprises in China was relatively concentrated. Analysis report on the market situation and prospects of China's coating products

what is the market situation of the coating industry, which has maintained rapid growth for consecutive years this year? Market experts believe that although facing the current situation of soaring international crude oil and domestic macroeconomic adjustment, on the whole, there are still many positive factors. The background is: the international manufacturing industry is accelerating its transfer to China, and the domestic coating industry is in development; The entry of international capital into Chinaplas and the re assembly of the industry continue to bring impact, while providing more opportunities; The new development concept with innovation and resource-based as the theme is conducive to improving the core competitiveness of enterprises

the current macro environment at home and abroad is generally conducive to the development of the coating industry. In 2006, although the coating industry will continue to face the pressure of trade barriers and RMB appreciation, the world economy and China's economy will still maintain rapid growth, the demand for coatings at home and abroad will continue to expand, and the export tariffs of relevant products will be cancelled from January 1, 2006, so the domestic coating industry will still maintain a rapid growth rate. The macro environment at home and abroad is generally conducive to the development of the coating industry in 2006, but there are also factors that are not conducive to its development. From the perspective of the international economic environment, the growth momentum of the world economy may fall back, which will have a certain impact on the development of the domestic coating industry, and the pattern of the international coating industry will be further adjusted. From the perspective of the domestic economy, the economic growth will slow down, but the stable operation of the domestic economy will be conducive to the adjustment and development of the project of "construction of high-performance thermoplastic composite intelligent factory" of its subsidiary, CGN Juner new materials Co., Ltd. The year 2006 is the first year of the Eleventh Five Year Plan for China to further consolidate and develop macro-control and maintain a good momentum of economic and social development. Implementing the scientific concept of development and building a well-off society in an all-round way is the center of China's economic construction, and it is also our important work and task. According to the current speed of national economic development and the average growth rate of China's paint production and sales in recent years, China's paint should increase by 10% in 2006, and the annual paint demand will reach more than 4million tons

experts said that architectural coatings and automotive coatings will continue to become the two pillars of the coating industry. The development of automobile will promote the quality, output and variety of automotive coatings to a new level. In 2006, the demand for various automotive coatings will exceed 200000 tons, including automotive touch up paint and agricultural vehicles, with a demand of 300000 tons. With the rapid growth of domestic car production, car imports have also increased sharply, and the number of domestic cars is increasing day by day. The development prospect of China's automotive touch up paint market is attractive. Urban and rural housing construction will still become the growth point and consumption hotspot of China's economy. With the implementation of the national goal of building a moderately prosperous society in an all-round way, the per capita housing volume in cities and towns will increase from 22 square meters per capita in 2002. By 2020, the per capita area of 30 square meters will be increased, and the demand for architectural coatings will be considerable

the development of China's coating industry in 2006 will show four characteristics

first, the production cost of the industry increased and the profitability decreased. Since 2005, the rising trend of energy, transportation and raw material prices has not weakened, further increasing the production cost of coatings. The use cost of transportation and power increases, and the profit space of coating becomes smaller. According to the data analysis of the National Bureau of statistics in recent years, under the condition of continuous growth of production and sales revenue, the average profit margin of the coating industry has decreased year by year, which shows that the survival situation of China's coating enterprises in 2006 is not optimistic, and they have fallen into a strange circle of producing more and earning less. The fundamental reason is the continuous rise of raw material costs, transportation costs and energy costs, which has squeezed the already meager profits of China's coating industry again. In particular, the world crude oil price continues to rise, which also has a great impact on China's paint market

the constraint contradiction of resources on the development of coating economy is becoming increasingly prominent, and the dependence on international resources is becoming higher and higher. The impact of international market price fluctuations on the operation of coating economy will also increase. For example, in recent years, China's demand for synthetic resin has maintained a rapid growth trend, requiring a large number of imports. The impact of oil on China's coating industry cannot be underestimated, and the industry will enter a high-cost era. A major problem faced by coating manufacturers in 2006 is the high cost of raw materials. Tight energy supply, increased costs and other factors lead to rising costs of solvents, epoxy resins and acrylic resins, which directly affect the economic benefits of the coating industry. In 2006, the supply of coating raw materials will remain tight, and the demand will exceed the new production capacity, with an annual growth rate of about 3% to 5%. The growth rate of enterprise profits will fall, and the amount of losses will rise, marking that enterprises will enter the era of meager profits

second, there is a slight surplus in supply and intensified market competition. In 2006, the static testing environment for the sale of electro-hydraulic servo universal testing machine for different materials was not loose, and the supply of the national coating market slightly exceeded the demand. Under the background of the rapid development of China's economy and the rapid growth of the demand of the coating industry, the growth rate of coating production in 2006 will remain at about 8%, which can gradually digest the new production capacity that developed too fast in the previous two years. At present, the production and sales of China's paint market are basically balanced. At present, the state has strengthened the regulation and control of real estate. Under the effect of macro-control, the domestic construction industry and housing industry have shown a tightening momentum, which will have a huge impact on the building coating market. In the short term, due to the sharp cooling of the real estate industry and the impact on the construction industry, the paint market will inevitably be affected. It can be seen that the actual demand for paint has been restrained to varying degrees. However, it should be seen dialectically that there are still many large projects under construction in Beijing, Shanghai and the northeast and northwest regions, such as the Olympic Games in Beijing and the World Expo in Shanghai. In 2006, new hot spots will appear in transportation investment, and port investment is still huge, such as Yangshan Deepwater Port, Shanghai international shipping center, and important coastal ports; The state has increased investment in inland river shipping; In the future, highways in the three growth poles will continue to be a hot spot for investment. At the same time, the Chinese government has increased the investment in the construction of various disease prevention and control centers at all levels in urban and rural areas and rural medical insurance hospitals. It is conceivable that the paint consumption market is large. Looking forward to the future trend of China's paint market, the author believes that in 2006, there are not only pressure to promote the price rise, but also conditions to stabilize the price to promote the price decline. Although supply exceeds demand in the paint market as a whole, some regions may also be stable and prosperous, with good momentum, and the overall price level shows a steady, medium and slightly rising trend

third, structural adjustment was accelerated and mergers and acquisitions continued to be promoted. In 2006, China will further strategically adjust the structure of coating products, phase out backward production processes, seriously polluted products and old devices, and adopt advanced and applicable new processes and new technologies to transform traditional old products. Through strategic adjustment, the proportion of synthetic resin coatings will be increased from about 70% to 80%. In architectural coatings, in recent years, in order to adapt to the development of high-rise buildings and improve the weatherability of architectural coatings. Coatings based on silicone and fluorocarbon resins have gradually developed. Silicone and fluorocarbon resin coatings have excellent weather resistance and corrosion resistance. They are the best architectural coatings for the external decoration of buildings. It is expected that they will occupy a large market of architectural coatings in the future. In industrial coatings, the proportion of water-based coatings, high solid coatings, powder coatings, solvent-free coatings and radiation curing coatings will be gradually expanded. In the next few years, the pattern of China's coating industry may change dramatically. Foreign funded enterprises with absolute advantages in capital, technology, quality, performance and so on will seize the high-end market in the field of large and medium-sized cities, while small and medium-sized enterprises with low concentration can only occupy the market segments of underdeveloped areas such as rural areas. However, the current situation of insufficient high-quality products and excess supply of low-quality products in the Chinese market will be extremely detrimental to the development of domestic enterprises. Domestic coating enterprises may become processing enterprises of foreign products, and mergers and acquisitions will become the main theme of the coating market. Insiders believe that now is the best time for state-owned enterprises to seek restructuring and private enterprises to seek development. Domestic coating enterprises should realize cross regional and cross industry restructuring through capital operation, pay attention to product quality and brand construction, improve core competitiveness, and expand and strengthen the scale of enterprises. In the next few years, the pattern of China's coating industry may change dramatically, and mergers, reorganizations and acquisitions will become another upsurge in China's coating market

fourth, optimize the product structure and highlight key varieties. The new development focus is on the anti-corrosion coating into beautiful points, industrial coatings, which will have a great future. In the field of anticorrosive coatings, marine coatings, container coatings and industrial anticorrosive coatings attract the most attention. In the 1990s, as a labor-intensive industry, the container industry was transferred from Japan to South Korea and then to China. At present, China has accounted for more than 90% of the market share; After Shenzhen Haihong, the container coating production base with COSCO Kansai, Zhongtu chemical and KCC as the main body has met the demand of more than 2million containers/a; At the same time, the world shipbuilding and ship repair industry has completed the transfer to East Asia, and the corresponding ship coating production has begun to transfer to East Asia, especially China. In 2004, Japan, South Korea and China alone accounted for 84% of the global shipbuilding market share. It is predicted that the demand of China's marine coatings market, which is dominated by marine coatings, is 30% per year. The rate of growth. In 2006, the world will usher in the peak year of shipping and shipbuilding after 1998, and the world marine coating market will usher in spring. The cost of coating in shipbuilding is second only to that of steel plate. As the third largest shipbuilding country in the world, China will make new breakthroughs in the consumption of ship paint in the new year with the advent of the shipbuilding peak. With the adjustment of the organization and the expansion of the scope of military elections, the general-purpose products of foreign companies began to penetrate the ship coating market, with a total capacity of about 4500 tons; In recent years, the number of offshore fishing boats in China has increased sharply, including 350000 fishing boats with less than 300 tons. Based on the paint consumption of 60 kg per fishing boat, the total consumption is 21000 tons, plus the consumption of 30000 tons of small wooden boats, the total consumption will reach 60000 tons. In 2006, the consumption of marine paint in China will reach about 150000 tons

China's industrial coatings are widely used in petroleum, chemical industry, automobiles, trains, ships, metallurgy, hardware and electrical, electric power, construction and other fields, with a large annual demand, especially the market prospect of waterborne industrial anti-corrosion coatings. At present, the paint used for offshore oil development is mainly for the protection of platforms and ancillary facilities, with a paint consumption of 3500 tons/year; Marine coatings are mainly high-performance and special coatings for repairing ships. At present, the proportion of architectural coatings to automotive coatings, industrial coatings and other coatings is changing. China's powder coating industry has developed rapidly with the development of household appliance industry. In the 1980s, China's powder coating industry increased at an annual growth rate of more than 70%. In the 1990s, although the average annual growth rate decreased, it still maintained a double-digit growth. According to experts from China epoxy resin industry association, in the field of powder coatings, epoxy/polyester powder coatings account for 65%, polyester/primil account for 3%, epoxy powder coatings account for 12%, polychloride ester powder coatings account for 1%, and epoxy resin becomes the main substrate. In strict environmental protection regulations