Recently, a number of big paint companies have announced that they are going to increase the price of their products: Jotun Paints will increase the prices of 10 industrial paints by 26%-40%; Barthes plans to raise the price of decorative paint products; 3Trees will raise the price of decoration paint products by 5% -10%. ... a number of well-known coating and paint enterprises are facing a price increase. In fact, it is known that as early as 2016, a variety of chemical raw materials have had a sharp rise in price. However, why has the paint industry not ushered in a price upsurge until now?
The primary reason is the low concentration of the coating industry. Unlike the raw materials industry, which was monopolized by a few large companies, the coating industry is composed of many small and medium enterprises as well as some large enterprises, whose market share is not large enough to affect the overall market price. In order to maintain their relationship with distributors, preventing customer dissatisfaction, coating enterprises chose to maintain the price, suffering the rising cost pressure in all aspects.
However, this shows that the coating industry is vulnerable to the pressure of a sharp rise in prices of raw materials and has no choice but to raise the price of its products. Some reports of coating enterprises indicate that in comparison with the previous year, crude oil prices rose by 80%, copper prices by 34%, zinc prices by 78%, and TDI prices soared following the tight supply. It is impossible for coating enterprises to bear the pressure of sharp price increases of so many raw materials, not to mention titanium dioxide, which had successive price increases in 2016.