Analysis of Architecture Coatings Sector

Architecture coatings are one of the four main chemical
architecture materials. They are extensively used in the
beautification and decoration of buildings with protective and
some other functions.
   Construction projects and residential buildings have
developed rapidly in the past decade. The decoration of
interior/exterior walls in buildings has promoted a rapid growth
of architecture coatings. The output of architecture coatings
reached 1.335 million tons in 2005. Most of them are latex
coatings for interior/exterior walls that are typical
mainstream products.

1. Compatibility to the development of the construction sector

The relevant data about architecture coatings published in
recent years are basically identical to the amount of
architecture coatings (for interior/exterior walls) needed in
completed areas of buildings in the construction sector.
   The completed area of buildings was 2.2 billion m2 and 2.3
billion m2 in 2004 and 2005. The area of interior walls was
therefore 5.5 billion m2 and 5.75 billion m2 and the area of
exterior walls was therefore 1.54 billion m2 and 1.61 billion
m2. Based on this calculation, the amount of architecture
coatings needed was 1.129 million tons and 1.219 million tons.
   The average annual output growth of architecture coatings is
nearly 20% in China in recent years.   
   The output of architecture coatings (for interior/exterior
walls) in China was 653.1 thousand tons, 773 thousand tons,
1.1337 million tons and 1.3352 million tons respectively in 2002,
2003, 2004 and 2005, accounting for 32.40%, 32.0%, 38.02% and
34.9% of the total output of coatings.
   In spite of a rapid growth in the output of architecture
coatings, the regional development is not balanced. Guangdong
province (364.2 thousand tons), Shanghai (275.2 thousand tons)
and Beijing (151.5 thousand tons) held the first 3 places in 2005
and their output accounted for 27.28%, 20.61% and 11.35%,
totaling 59.24% of the national total. The output in the top 100
producers was 1.213 million tons, accounting for 90.8% of the
national total. The concentration of producers is increased.
Large producers have dominated the market, developed innovative
core technologies and acquired more than 50 patents. Several
producers have been awarded the title of provincial coatings
technology center. A group of strong production enterprises,
such as Guangdong Huarun Paints Holdings Co., Ltd., Jiangsu
Elephant East Asia Coatings Co., Ltd., Putian Sanjiang Chemical
Co., Ltd., Guangdong Carpoly Chemical Co., Ltd., China Paint Mfg.
Co. (Shenzhen) Ltd., Shenzhen Dazhong Chemical Co., Ltd.,
Hempel- Haihong Coatings (Shenzhen) Co., Ltd. and Nanbao Resin
(Kunshan) Co., Ltd., have appeared in China in the competition
between Chinese brands and other world-famous brands.

2. Guarantee ability of synthetic resin latexes

Major producers of synthetic resin latexes in China include
Beijing Eastern Rohm and Hass Co., Ltd., Shanghai Rohm and Hass
Co., Ltd., Shanghai BASF Co., Ltd., Union Carbide (Zhongshan)
Co., Ltd., Jiangsu Sunrising Chemical Group Co., Ltd., Guangdong
Badefu Chemical Co., Ltd., National Starch Chemical Co., Ltd.,
Eternal Chemical Co., Ltd. and Jiangsu Sanmu Group Co., Ltd. Both
the output and the type of latexes can meet the demand in
architecture coatings. Based on an application amount of no less
than 20% in latex coatings, the consumption of latexes should
be more than 250 thousand tons. The actual output of latexes has
reached more than 400 thousand tons in China.
   The output of synthetic resin latexes in China is increasing
at an annual rate of 10-15%, compatible to the output growth of
architecture coatings. There are already more than 30 types of
latexes. China not only has general-purpose types such as
styrene-acrylic latex and pure acrylic latex, new types such as
elastic latex, non-saponified latex, silicon acrylic latex and
waterborne polyurethane dispersants have also been developed.
Most of these new types have been commercialized and can meet
the demand in some special architecture coatings. Series
products of these new types are however yet to be developed.

3. Guarantee ability of basic pigments and fillers

The total output of pigments in China was 1.46 million tons in
2004, an increase of 13% over 2003. Of the total, the output of
inorganic color pigments was 1.308 million tons and the output
of oil-soluble organic pigments for coatings was 150 thousand
tons. The sales amount in the domestic market was 922 thousand
tons and the export amount was 538 thousand tons. Jiangsu
province (617 thousand tons), Guangdong province (182 thousand
tons) and Zhejiang province (168 thousand tons) held the first
3 places in 2004. The output in these 3 provinces accounted for
66.2% of the national total. The import amount of pigments was
440 thousand tons in 2004, an increase of 6.3% over 2003.

(1) Titanium dioxide

Titanium dioxide is a basic white pigment for architecture
coatings (for interior/exterior walls). It plays a key role in
the decorativeness, weather resistance and chemical stability
of coatings. The consumption of titanium dioxide is more than
700 thousand tons. The consumption of titanium dioxide in
coatings is more than 400 thousand tons, accounting for over 60%
of the total. The demand of titanium dioxide in architecture
coatings (for interior/exterior walls) is around 150 thousand
tons. Domestic titanium dioxide (including anatase and rutile)
can meet around two thirds of the local demand. The remaining
one third of the demand has to be satisfied by imported rutile.
   China Titanium Dioxide Industry Association had 46 member
enterprises in 2004 and their output of titanium dioxide was 546
thousand tons, an increase of 29.8% over 2003. The output of
rutile titanium dioxide was 143 thousand tons, the output of
anatase titanium dioxide was 337 thousand tons and the import
amount was 250 thousand tons. There were 23 producers with an
annual output of over 10 thousand tons and their output of
titanium dioxide was 417 thousand tons, accounting for 76.30%
of the national total.
   Titanium dioxide (either anatase or rutile) produced by China
itself can meet the application requirements in architecture
coatings.

(2) Lithopone

   Lithopone is a medium and low-grade white pigment mainly used
in architecture coatings (for interior walls) and oily mixed
paints. China is a large lithopone producer in the world and the
output reached 183 thousand tons in 2004. The output in 10
producers including Guangzhou Huali-Sachtleben Chemical Co.,
Ltd. and Hunan Xiangtan Hongyan Chemical Co., Ltd. accounted for
85% of the national total. Both the output and the type of
domestic lithopone can meet the application requirements in
medium and low-grade architecture coatings (for interior
walls).

(3) Iron oxide series pigments

   Iron oxide series pigments are also major pigments used in
architecture coatings (for interior/exterior walls). The output
of iron oxide series pigments in China was 545 thousand tons in
2004. Of the total, the output was 205 thousand tons for iron
oxide red, 210 thousand tons for iron ox