China Coatings Market Output Grows
The output growth was reportedly supported by the strong economical southern region of China, while other areas in west and north saw declines in output.
During the first six months of this year, the combined output of 1,358 large-scale coating manufacturers in China increased by 10.5% year over year (YoY) to 641,000 tonnes, according to market researcher CCM. The output growth was reportedly supported by the strong economical southern region of China, while other areas in west and north even saw declines in output.
In 2016, China produced 57% of coatings in the Asian Pacific and 28.50% of the world total, proving that China had reportedly become a major production base of the international coating industry. During the latest round of environmental inspections in China, coatings manufacturers have suffered pressure with several small and middle-sized enterprises needed to shut down due to insufficient environmental protection measurements.
Despite the rising output of China’s coatings industry, the profit for manufacturers actually fell down in the first half of 2017. One of the main reasons for the shrinking profits can reportedly be found in the rising costs for raw materials.
According to statistics from the National Bureau of Statistics of the People's Republic of China, domestic large-scale coating companies produced a total of 1.91 million tonnes of coatings in June, up by 11.7% YoY, and the combined coating output from January to June increased by 10.5% YoY to 9.64 million tonnes.
Emerging countries, like India or China, reportedly have a booming construction and automotive market, which are the main drivers for the coatings industry. Chinese coating market has already climbed number one in the world size, but industry insiders still see huge potential for the future, as the consumption per capita is still lower than other countries.
The industrial coatings market is growing steadily and will reach a market worth of about $41,700 by 2022. The industry is reportedly marked by a row of mergers and acquisitions, while manufacturers are paying more focus on enhancing their product portfolio to stay ahead of the fierce competition.
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