In response to the rising tide of raw material price, how should coating companies deal with the risk of price fluctuations?

From the perspective of operating cost structure, the main raw and auxiliary materials of coating products are emulsion, resin, titanium white powder, additives, fillers, various organic solvent(like Cyclohexane,Methyl cyclohexane,DMF etc.), packaging, etc., and the cost of all kinds of chemical raw materials and packaging materials accounts for about 80% of the main business cost of coating enterprises, even up to more than 90%. Accordingly, each big coating company is very concerned about the risk that raw material price fluctuation brings.

According to the latest data from the National Bureau of Statistics, the PPI for the manufacturing of coatings, inks, pigments and similar products from January to September 2020 was 99.7, 99.7, 99.8, 98.3, 97.2, 96.9, 96.4, 96.7 and 96.8, respectively. From the data, the first nine months of the paint product prices are falling. “The general decline in the prices of major raw materials has laid the foundation for lower prices for enterprises’ products.

The price of raw materials has always been a hot topic in the coating industry. They are usually the single largest cost of paint enterprises. The price change of main raw materials will have a certain impact on the profitability of the company. Therefore, managing and working to reduce them is one of the keys to cost control and profitability in the industry. Therefore, for coating enterprises, an important aspect of increasing profits is to control the cost of raw materials. But unfortunately, titanium dioxide, resin, solvent and other coatings main raw material product prices began to rise.


Post time: Oct-30-2020
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