The hottest global paint leader raises prices due

2022-10-23
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Global paint leaders have raised prices due to consumption tax

global paint leaders have raised prices due to consumption tax

April 8, 2015

[China paint information] global paint leaders have raised prices due to consumption tax by 4%. Jinlitai is still in communication and has not followed suit for the time being. Based on China's 4% consumption tax on the coating industry, global coating giant Beckers China officially announced a 4% price increase from April 1, 2015. Jinlitai () insiders said that the company mainly focuses on water-based coatings, and not all varieties need to be taxed. The varieties that need to be taxed are still in communication with the tax department, and whether to raise prices in the future will need to be negotiated with downstream customers. The above insiders also said that some contracts are signed on an annual basis, and whether to raise prices halfway still needs to be negotiated with downstream customers; If the price needs to be increased by 4%, this is already a large price increase

a securities analyst who did not want to be named said that at present, the average profit margin of the traditional paint industry is only 6.4%. With the implementation of the consumption tax policy, it will also force the traditional paint production enterprises to transform; With the national attention to atmospheric governance, the environmental protection testing machine in the paint market is an indispensable testing instrument. The cost of testing instruments is increasing, and the traditional paint that pollutes the environment and is toxic will face industrial integration. "This regulation is good for the environmental protection paint industry, that is, water-based and powder paint industry". With the approval of the State Council, consumption tax will be levied on coatings from February 1, with the applicable tax rate of 4%. Coatings with volatile organic compounds (VOC) content rising by 40 yuan/ton in Fujian under construction and less than 420 g/L (inclusive) will be exempted from consumption tax

analysts said that this will force the transformation of traditional paint production enterprises. Toxic traditional paint will face industrial integration, and the point gate will solidify and seal quickly. If the manufacturing conditions allow, multiple points of gates can be set, which can effectively prolong the pressure holding time and increase the cavity pressure, so that the shrinkage rate is reduced. Jinlitai, a leading enterprise of environmental friendly paint, is expected to benefit. Domestic coating related listed companies include jinlitai (), Chongqing Three Gorges a (), rainbow refined chemical (), etc. Public information shows that as early as January 1st, 2004, the EU has completely banned the production and sale of solvent based paints in EU countries; The United States also restricted the entry of Chinese painted furniture into the American market in 2004. In the future, with the increasingly stringent requirements of environmental protection, the consumption upgrading trend of water-based and powder coatings replacing traditional solvent based coatings is clear, and the policy will force the transformation of coating enterprises mainly engaged in traditional coatings. The coating industry is facing the opportunity of industry reshuffle, and there is a large space for the development of environmental friendly coatings

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