A Profile of the Chinese Paint Industry, fourth edition

Citation

(2005), "A Profile of the Chinese Paint Industry, fourth edition", Pigment & Resin Technology, Vol. 34 No. 6. https://doi.org/10.1108/prt.2005.12934fac.004

A Profile of the Chinese Paint Industry, fourth edition

A Profile of the Chinese Paint Industry, fourth edition

Keywords: Paints, China

Information Research (IRL) has announced the publication of its fourth Profile of the Chinese Paint Industry.

Paint production in China – an undertaking of about 8,000 companies, many more than has previously been recorded – now stands at 3.6 milliontonnes, with demand at 3.75 milliontonnes. The split of paint production by region is shown in Figure 2.

Figure 2 Chinese paint and coatings production by region, 2004 (percent)

About 90 percent of the output is accounted for by domestic consumption as a result of growth in real estate development, expansion of the automotive sector and all parts of transport infrastructure, not of course, forgetting manufacturing. Across a population of 1.3 billion per capita paint consumption in China now stands at 2.8 kg/head and is rising fast. With those expansion plans taking shape in the coming years, the best prospects will be found in architectural, anticorrosive and transport coatings, among others.

In the paint and coatings sector itself:

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  Architectural coatings demand is being driven by residential and commercial property projects, with a substantial boost now being derived from interior decoration. Water-based architectural coatings have demonstrated little growth in China until this year, but legislation for the protection of the environment will see compliant technology flourish more fully in the future. Currently there are about 100 types of water-based coatings of comparable quality to those offered by Nippon Paint and ICI (Dulux) in China.

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  The transport sector has witnessed something of a slowdown with regard to automobile sales in 2004/ 2005, but there remains huge potential in finishes for buses and trucks, as well coatings for light rail and metro systems as cities gear up with more modern transportation systems.

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  Piping is a key application for powder coatings, with China already the world's largest powder coatings market at about 130,000 tonnes. The rise of automotive applications for powder coatings in China is to be expected.

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  Wood finishing is rapidly embracing more modern technology especially as the standard for building materials is raised. Polyurethane finishes are gaining ground rapidly, while the wood-finishing sector is the prime market for UV-curable coatings. The potential of the wooden flooring market in China, given booming construction, is therefore huge.

Also, in the raw materials sector:

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  High quality, rutile-form titanium dioxide is in short supply and supports a strong import market. Currently imports can barely keep pace with Chinese demand; it is expected that the shortage of high- quality titanium dioxide will become very serious within the next 3-5 years.

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  Epoxy resins are witnessing rising production with Chinese output expected to reach 350,000tonnes in 2005, but a further 250,000 tonnes will still be required. Hence over 40 percent of the Chinese market is supplied by imports and with demand requirements increasing, the balance of trade is worsening all the time. Investments from multinationals in China are spurring domestic producers (of which there are over 200) to increase the quality of their output.

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  Acrylic acid and related acrylate esters are also in short supply. Consumption of general purpose acrylates in China is estimated at about 500,000 tonnes in China, of which about 70-80 percent of the market is fulfilled through domestic production. However, the commissioning of the BASF-YPC acrylic acid venture will help to ease this market over the next five years.

Terry Knowles, Business Manager at IRL and author of the report said “As China moves into a new period with its eleventh five-year plan, the focus will increasingly be on larger companies and consolidation within this fragmented industry in the coming years. Opportunities that companies will want to be aware of include the development of the Beijing Central Business District, many different construction projects associated with the forthcoming Olympics in 2008, both in Beijing and other parts of China (including the construction of Olympic villages, stadia and related transport infrastructure), and later the Shanghai Expo, due to take place in 2010.”

A Profile of the Chinese Paint Industry, fourth edition, has the following contents:

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  Introduction;

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  Executive Summary;

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  Background;

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  Paint Raw Materials in China;

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  The Chinese Paint Industry;

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  Paint Production, Trade and Consumption in China;

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  Chinese Paint Production and Market Data By Sector;

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  Statistics and Trends in End-Use Sectors;

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  The Future For the Chinese Paint Industry;

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  Directory of Chinese Paint Manufacturers; and

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  Appendix: Chinese Banks and Investment Organisations.

A Profile of the Chinese Paint Industry (181 pp and 130 tables), which includes a 14-page directory of major paint companies in China, is now available from IRL priced e3,000 for a single hard copy edition.

Sections of the report, priced individually, will soon be available to purchase online at our website: www.informationresearch.co.uk

For more information on this report, please contact Terry Knowles at tknowles@brg.co.uk. Information Research (A Division of BRG UK Ltd), CP House, 97-107 Uxbridge Road, Ealing London W5 5TL United Kingdom.