China
by Arnold Wang
China Correspondent
In the first half of this year China’s GDP growth was 6. 7 percent over the same peri- od of last year. The real estate property market is driving the growth of China’s economy,
with their sales in the first half of this year increased by 42.1 percent over the same period of
last year. Passenger vehicle sales in the first half
of this year have increased by 11. 5 percent over
the same period of last year. China sold over 10
million vehicles in the first half of this year and
in June alone China sold more than 20. 6 percent of passenger vehicles than the same month
of last year, the highest growth record in 2016.
With robust demand from infrastructure,
real estate and automotive markets, coat-
ings output has increased by 6.92 percent to
reach 10 million tons by the end of July, 2016,
compared with only 1.42 percent growth in the
first half of 2015. Although several key pillar
industries continue their fast growth, some in-
dustries are still struggling to turn around from
their downturn period. For example, demand
from manufacturing and exports are still soft.
Furthermore, another challenge faced by coat-
ings producers is that raw materials’ price have
been bouncing back from their bottom follow-
ing recent recovery of oil price.
According to the proposal of China’s coatings industry proposal for 13th Five Year Plan,
which spans from 2016 to 2020, the total coatings output is estimated to be 22 million tons
in 2020. The output of environmental friendly
varieties will be 57 percent of total coatings
output in 2020. And the plan hopes to have
over 10 coatings companies whose annual sales
will be over five billion RMB and have the coatings output of the top 50 companies to reach 50
percent of total output. Whereas double digit
Robust demand in
key downstream
markets drove
the growth of
coatings industry.
China Coatings Market
Enters Stable Growth Period
