The demand for coatings in the Chinese market will

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In the next two years, the demand for coatings in the Chinese market will continue to increase

in the next two years, the demand for coatings in the Chinese market will continue to increase

August 28, 2020

the base trend of the coating industry reflects the development and trend of downstream fields. Especially this year, due to the growth of demand, the construction and packaging industry has a significant positive factor in the base trend. Industry, should spare no effort to study the market, research the demand for corrosion protection, woodwork, automotive aftermarket and coiled material industry have a certain upward trend with the economic development. The reasons for the formation of substrate trend are very complex, and the main impact lies in the following aspects of coatings

01. New infrastructure factors

in the middle of this year, the government has defined the scope of "new infrastructure" for the first time, mainly in three aspects, namely, infrastructure adheres to government guidance, industry collaboration, enterprise entities, market operation, think tank support facilities, integrated infrastructure, innovative infrastructure, and seven areas, namely 5g infrastructure, UHV, intercity high-speed railway and urban rail transit, charging piles for new energy vehicles, big data centers, artificial intelligence Industrial interconnection. The direct and indirect investment driven by the new infrastructure will reach billions of yuan, which will have a positive impact on several major downstream industries of coatings. Insiders said that the building materials industry, building decoration industry, furniture and other internal demand, property and other external demand, as well as the communication equipment industry will benefit from the "old reform". Coatings, waterproof, thermal insulation materials, pipes and other subdivisions are expected to benefit significantly. Specifically, the opportunities brought by the "new infrastructure" can be divided into two parts: outdoor renovation and indoor renovation, including at least eight opportunities: exterior wall renovation, waterproof renovation, outdoor floor tile renovation, interior wall renovation, lighting, various hardware products, pipes, and smart communities

02. Other policy factors

in addition to accelerating "new infrastructure" "In addition to some monetary and financial means, policies in some areas will have a certain impact on the demand for coatings, with different directions and degrees. The most significant is the achievements of Minnesota's team at Cornell University, which is closely related to architectural coatings. The above problems may change the industry. Since 2019, many regions in China have entered the" five restrictions "of purchase, loan, price, business and sales restrictions Strictly control the state. Under this tone, dozens of cities across the country have tightened strict control measures on the sales of first-hand houses this year. In addition, the transformation policy of old residential areas plays a supporting role in the demand for architectural coatings. The 2020 "government work report" proposed that the transformation of old urban communities in 2020 also includes the goal of 39000 for the production plant in Schelde, Cologne, Germany, involving 3billion square meters, equivalent to the total trading area of first-hand and second-hand houses throughout the year. By the end of June, the operating rate of the reconstruction of old residential areas in the country had reached 40% or more. By the end of the "14th five year plan", another 131000 old residential areas will be transformed nationwide.

based on the above analysis, it is expected that the demand for construction, corrosion protection, packaging and automotive aftermarket coatings in the Chinese market will increase in the next two years

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