China Coil Coatings Industry Under Pricing Pressure from Upstream Market

摘要

It is estimated that the coil coatings output in 2014 is around 540 thousand tons in China, growing by around 8-11 percent over 2013. But the fierce competition from upstream coated metal market, mainly coated steel, is putting more pressure to the coil coatings producers in China. Currently the coil coatings market is led by several domestic companies such as Shanghai Zhenhua, and Wuhan Twin Tiger and several foreign companies such as Nippon Paint, Valspar, Becker, AkzoNobel and PPG. The domestic coil coatings producers normally have a closer customer relationship with local major coated steel manufacturers. For example, the partnership between Shanghai Zhenhua and Baosteel and the partnership between Wuhan Twin Tiger and Wugang have been formed for many years.