In the first half of the year, China's coatings can be described as having a negative impact: just after the Iraq war was added, the cost of production has increased, and it has also been hit by the “SARSâ€. It has finally recovered its vitality. The Ministry of Commerce last month gave preliminary anti-dumping measures against TDI for coating production. The cost suddenly rose by 5%. However, Shunde, which is known as the "hometown of paints," from the district government, industry chambers of commerce, to various production companies, is actively self-help, and strives to minimize adverse effects.
Despite the rainy days, the soaring oil prices caused by the Iraq war forced the Shunde paint industry to collectively increase prices on February 25. The subsequent “SARS†trend has caused the average sales volume to drop by 30%, while legitimate companies have added In order to restore the sales volume of the past, the large-scale marketing efforts, on June 10th, was again poured into cold water by the Ministry of Commerce: a preliminary ruling on the dumping of imported TDI (toluene diisocyanate) originating in Japan, South Korea, and the United States. The price of TDI, the main raw material for paint, rose by 2,000 yuan/ton on the same day.
TDI accounts for 30%-40% of the main manufacturing materials for coatings, and the production cost of coatings has risen by 5%. Currently, there are only two domestic companies that produce TDI, and the output only accounts for about 10% of domestic demand. Most companies rely on foreign imports. The initial anti-dumping rule imposes a high tax rate on the three countries’ products that account for more than 70% of the Chinese market. Paint production companies suddenly felt the pressure was on the rise.
Downstream companies repeatedly clamored for pain Shunde painters could not sit still. TDI's main influence is furniture coatings, and Shunde furniture coatings account for more than 50% of the country's market share. Before the deadline of June 30th when written comments could be submitted to the Ministry of Commerce, the Shunde Coatings Association collected relevant data and materials of various production companies, and requested the Ministry of Commerce to postpone the implementation of anti-dumping measures in the next year or two, because domestic paints are currently Import TDI dependence is too large, import prices suddenly rise, the company may be difficult to afford, and several major foreign producers have been put into production in China, one or two years after the output can be expected to meet the domestic market demand.
According to Chen Guanqi, secretary-general of the Shunde Coatings Association, this proposal has been responded to by paint companies and chambers of commerce all over the country, but the result will not be known until the final ruling in November. The Chamber of Commerce has done its best to do a positive response.
Despite the rainy days, the soaring oil prices caused by the Iraq war forced the Shunde paint industry to collectively increase prices on February 25. The subsequent “SARS†trend has caused the average sales volume to drop by 30%, while legitimate companies have added In order to restore the sales volume of the past, the large-scale marketing efforts, on June 10th, was again poured into cold water by the Ministry of Commerce: a preliminary ruling on the dumping of imported TDI (toluene diisocyanate) originating in Japan, South Korea, and the United States. The price of TDI, the main raw material for paint, rose by 2,000 yuan/ton on the same day.
TDI accounts for 30%-40% of the main manufacturing materials for coatings, and the production cost of coatings has risen by 5%. Currently, there are only two domestic companies that produce TDI, and the output only accounts for about 10% of domestic demand. Most companies rely on foreign imports. The initial anti-dumping rule imposes a high tax rate on the three countries’ products that account for more than 70% of the Chinese market. Paint production companies suddenly felt the pressure was on the rise.
Downstream companies repeatedly clamored for pain Shunde painters could not sit still. TDI's main influence is furniture coatings, and Shunde furniture coatings account for more than 50% of the country's market share. Before the deadline of June 30th when written comments could be submitted to the Ministry of Commerce, the Shunde Coatings Association collected relevant data and materials of various production companies, and requested the Ministry of Commerce to postpone the implementation of anti-dumping measures in the next year or two, because domestic paints are currently Import TDI dependence is too large, import prices suddenly rise, the company may be difficult to afford, and several major foreign producers have been put into production in China, one or two years after the output can be expected to meet the domestic market demand.
According to Chen Guanqi, secretary-general of the Shunde Coatings Association, this proposal has been responded to by paint companies and chambers of commerce all over the country, but the result will not be known until the final ruling in November. The Chamber of Commerce has done its best to do a positive response.
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