Limited purchases, limited loans, and signs that the interest rate of the first suite cannot be loosened, the cooling down trend of the property market in 2012 remains the same. On the ** that was being held, the NDRC repeatedly stated when it came to the policy impulse of the local property market: It is studying the long-term mechanism of regulation and control to continue to regulate the fast-growing property market. Recently, Shanghai Baoshan District and Xuhui District have introduced a new wave of purchase restriction policies: If adult children of Shanghai** family are on the parental housing real estate certificate, unmarried children may not purchase the apartment again. This news made the Shanghai property market "shock" endless. Following the redefinition of the concept of “Shanghai ** Families” on February 28th in Shanghai, Shanghai’s restriction on purchases has once again tightened. This series of news is undoubtedly a bad news for the downstream architectural coatings market. Prior to this, Wisdom participated in an architectural paint salon held in Shanghai. Participants in the salon all came from well-known managers and marketers of the architectural coatings and raw material companies. The information passed from the Shanghai Architectural Coatings Salon further confirmed this trend: Under the control of central government regulation and local policies, the property market has cooled dramatically. The industry’s previously expected secondary renovation and affordable housing market is still difficult to support the “spring” recovery of architectural coatings, and the cost pressure of architectural coatings companies is in urgent need of technological change.

Central government regulation and local policies have been taking turns to cool down the property market. Since the beginning of this year, the central government has repeatedly stressed the need to continue to regulate the real estate market, strictly implement and gradually improve policies and measures to curb investment speculative demand, and further consolidate the regulatory achievements. , To promote a reasonable return of housing prices. Taking the Shanghai property market as an example, once the Shanghai ** family’s children’s purchase restriction policy “spreads” to other districts in Shanghai, the number of Shanghai residents who have qualified to purchase a home will be reduced by at least another half. This is undoubtedly a blow to the Shanghai property market, which has begun to show signs of recovery. In the near future, the property market in Shanghai may experience a significant decline in volume. Developers were reluctant to sell their products and their cash flow was hindered. The enthusiasm for new projects was weakened. The direct result was a decrease in the supply of developments and a further contraction in the downstream architectural coatings market.

Previously, people in the industry generally agreed that the national growth rate for coatings in 2012 was estimated to be 15%. However, from the current situation, the central government's control and local policies have taken turns to cool down the property market. As well as uncertain non-beneficial factors, the growth of architectural coatings in 2012 is expected to decline. The person in charge of the marketing department serving a certain well-known foreign paint auxiliaries and also the promoter of the Shanghai Architectural Coatings Salon Meng Fanyu stated that it is conservatively estimated that the annual growth of China's architectural coatings will maintain at a low level of 10%-15% in 2012. . Lin Xuanyi, a well-known coating expert in China, said: “The large and medium-sized architectural coatings companies have been developing well in 2011, but there has been a slowdown in collective growth in the second half of the year. The development of small-scale paint companies is even more difficult. Large and medium-sized architectural coatings companies and small paint companies are The trend of two levels of differentiation will intensify in 2012. There may be further industry reshuffle or integration."

The first and second quarters of 2012 may be the "cold winter" of the architectural coatings industry. Participants at the Shanghai Architectural Coatings Salon also agreed that 5%-10% is considered a reasonable growth rate for construction coatings companies in the first and second quarters. The reason is: Under the multiple effects of the slowdown in the development of the property market and the comprehensive control policies of the country, the impact on the architectural coatings companies will be lagging for 6 to 8 months. This will be released retaliatoryly in the first two quarters of 2012.

The second-decoration and security room is difficult to support the “spring” warm-up of architectural coatings. The transaction volume of new commercial housing is limited, and the second renovation and protection of the housing have been seen as the life-saving straw in the construction market in 2012. A statistical data shows that 60% of the decoration abroad is from second-hand housing and secondary decoration. In the European and American markets, 20% of the paint business is new construction and 80% is paint for renovation. Wang Weixing, the market leader of a well-known foreign pigment paste brand, believes: “The base of the secondary decoration market in China is too small and has been at a freezing point, which is not enough to make up for the gap left by the just-needed houses. At the same time, Chinese consumers are The demand for color consumption also needs to be further opened up.” With regard to the current end-use consumption of the architectural coatings market, China’s refurbishment or maintenance market has indeed not been well developed. Ye Ching-feng, a market leader from a well-known US-based architectural coating company, further pointed out: “Although last year's officially announced rate of affordable housing has a good figure, there is still a certain amount of time from the start of construction to the completion of construction to the stage of renovation that requires the use of paint. The demand for architectural coatings is hard to increase in the first and second quarter of this year."

The cost pressure of architectural coatings companies is increasing The urgent need for technological changes The rise in prices of major paint raw materials in the upper reaches has caused architectural paint companies to generally feel “Alexander”. Take titanium dioxide as an example: In recent years, the price of titanium dioxide has continued to rise, which has brought great pressure on the downstream coating industry. In response, international paint giants such as Sherwin-Williams Coatings, PPG Industries, and AkzoNobel of the Netherlands have also stated in recent days that they will take measures to minimize the use of titanium dioxide and at the same time reduce the cost of raw materials by finding alternatives.

As the main supplier of raw cellulose for architectural coatings, Ms. Wu, the head of the Chinese market for a foreign brand, thinks: “In terms of cellulose production, there is a large monopoly of important raw materials in China. The lack of stability in prices is the result of coating raw material prices. The main reason for the fluctuation. In addition, the transmission of unfavorable factors such as rising upstream raw materials, production of electricity, and rising manual management costs have caused greater cost pressures for architectural coatings companies."

In fact, through the use of AkzoNobel, PPG and other foreign giants to reduce the cost of raw materials through the search for alternatives to titanium dioxide, we are not difficult for architectural coatings are also looking forward to a technological change to reduce the cost pressures in a sluggish market environment. “Architectural coatings companies can completely cope with the pressure of rising costs through new technological changes. For example, ONECOAT technology can reduce the coating of architectural coatings to achieve a one-step coating effect.” This technology helps In the future, the market competitiveness of architectural coatings companies will increase.

In addition, the propaganda and packaging of architectural coatings functions and brands tend to be rational. The future direction of architectural coating technological innovation is: First, to reduce production costs without affecting the quality of coatings. The second is the need for further safety assessment of the possible environmental pollution and health hazards caused by nano-coatings and negative-ion coatings. The third is that the calculation and control of carbon emissions from paints are more scientific and reasonable and controllable. The fourth is to improve the quality of the products and improve the production efficiency by improving the completeness of the construction coating equipment and the control of factory hygiene.