China’s Coatings Industry Sees Growth of 5.6% YoY in 2016 Revenue

China’s output of coatings – produced by enterprises with annual sales of RMB20 million or above – was up 7.2% YoY to 19 million tons in 2016, and these firms posted main business revenue of RMB435.45 billion, increasing 5.6% from 2015.
While expanding production capacity and operation scale, China’s coatings producers have greatly diversified products in recent years. Eco-friendly, energy-efficient coatings are becoming the trends of development. However, imported products are needed currently, to meet part of China’s demand for high-end coatings. Foreign trade for major varieties of coatings for 2016 fell 7% YoY to US$1.52 billion, according to the General Administration of Customs of China. More specifically, import volume declined 1.83% YoY to 166 800 tons, worth US$915 million, boosting 2.63% from 2015. Export volume amounted to 172 700 tons, down 15.32% YoY, and the value shrank 18.58% YoY to US$605 million.
For major varieties of coatings, China has exported more than it has imported since 2014, but the export volume for 2016 decreased, the first time after 2012.
In 2016, China’s output of architectural coatings reached 5.54 million tons, providing 32% of the total. As for others, the yield of wood coatings was around 1.1 million tons, and that of automotive coatings reached 770 000 tons.
A number of small and medium-sized coatings plants were shut down in 2016, over 80% of them with a capacity below 300 t/a. Around 80% of China’s coatings enterprises are small or medium-sized, and the competition is severe as they produce similar products. Further, they felt more stressed, because of new regulations on environmental protection and consumption taxes of coatings.
China’s 13th Five-Year Plan for the Development of Coatings Industry (2016-2020) calls for improving product quality and propelling eco-friendly coatings, via stronger ability in technical R&D and innovation. By 2020, total output value of China’s coatings industry is forecast to reach around RMB560 billion, and the total output may grow to 22 million tons. Eco-friendly varieties are to provide 57% of China’s total coatings yield. At least 20 to 30 large and medium-sized enterprises will establish platforms to facilitate technical innovation. The number of coatings producers that increase annual sales to over RMB5 billion is to exceed 10. In addition, industry players will strive for breakthroughs in some technologies, and industrialization of a number of new products, which meet international advanced level.