Upstream and downstream extrusion coil coatings companies are very upset

Upstream of titanium dioxide, oil and other raw material prices high, pre-painted steel coil downstream industry (hereinafter: color coating industry) excess capacity, the homogenization of competition is hard to change, coupled with the coil coating industry customary for the entire industry painted The huge receivables pressure formed by the capitalization makes the coil coating enterprises under the squeeze of the upstream and downstream of the industrial chain “difficult to live”.

In the "2012 Coil Coating and Coating Development Forum", Shen Weigen, president of the Yangtze River Delta Coating Metal Sheet Industry Association and president of Zhejiang Huadong Light Steel Building Materials Co., Ltd. told reporters that in recent years, the color coating industry's production capacity and production line " The development of the spurt type has caused the current color coating industry to fall into overcapacity, homogenization competition and meager profit, and its upstream coil coating industry has also been affected.

Analyst Cao Jianyong said that from 2005 to now, the total number of color coating production lines in China has increased from 171 to 342 (it is expected that the color coating production line will be no less than 350 this year), and the total capacity increased by 20.68 million tons to 37.05 million. Tons, that is, the capacity of the entire industry has expanded by a full 1.5 times during this period.

The “blowout” development of color coating production lines and production capacity has caused the current color coating industry to fall into overcapacity, homogenization competition and meager profit. Especially in the color coating enterprises in East China, according to Cao Jianyong, there are currently 237 color coating production lines in Jiangsu, Zhejiang, Shandong and Anhui provinces, accounting for nearly 70% of the total production lines in the country.

The homogenization competition and the meager profit pattern bring about “price fight” and “cost fight”. In order to reduce costs and occupy market share, many color-coating manufacturers “have an idea” on raw material costs. For example, when purchasing paints, they tend to choose low-priced, low-grade products, and deliberately reduce the coating during the production process.

In this process, the cost of raw materials such as titanium dioxide and petroleum continued to be high, and the coil coating industry itself was highly competitive and the sales were not smooth. In addition, the difficulties of color coating enterprises were “transferred” and they were squeezed in the upstream and downstream. The coil coatings company in the state is “very sad” and some companies are on the verge of losing money.

To this end, many coil coating companies sacrifice the quality of coatings, reduce the grade and quality of products, and then "meet" the low cost requirements of color coating enterprises.

"Some coil coating plants strictly control the quality, while others lower the threshold, and the quality of the entire coil coating industry is highly polarized." Huang Shishanli Technology Development Co., Ltd. deputy general manager and chief engineer, Zheng senior engineer Ma Guo And told reporters that even some color coating factories run their own paint factories (production of coil coatings), but most of these paint factories are poorly equipped, lack of testing methods, weak technical strength, and long-term hidden dangers in product quality.

“Because the coil coating industry itself has pressure and no sales, the upstream and downstream are both monopolistic and in the middle sandwich panel position”, Cao Jianyong said, “The current trend of paint application in color coating enterprises is that the thinner the profit, the more additives ".

It is worth mentioning that the current phenomenon of coil coating enterprises for the color coating enterprises is more common, and the receivables of coil coating enterprises are generally higher.

Shen Weigen's explanation for this phenomenon is that the main reason is that the coating products are more special, and the quality needs to be tested for a long time. “In order to be responsible for the future products, the coatings enterprises have to make a cushion”, “to make the color coating enterprises feel at ease” It is necessary to have a 'guarantee' in the color coating enterprise. As a result, the receivables of the coil coatings enterprises are generally large, so the coatings enterprises are very painful."

However, the use of low-quality coatings and thinning coatings by color coating companies often affects the corrosion resistance and service life of color coatings, which brings quality problems to downstream steel companies. "After some color steel plates are made, they are not used. It will rust in a year," Shen Weigen said.

Once there is a quality dispute or quality objection between the users of the color-coated products and the color-coating enterprises, the coil coating enterprises often receive “involvement” because the “coating money” of the coil coating enterprises is more common.

Cao Jianyong bluntly said that the current practice of reducing the quality of products and reducing costs by coil coating enterprises and color coating enterprises can only solve the immediate crisis. "After one or two years, when there is a quality objection, the money may be lost more. ".

“Looking for some high-quality color coating production enterprises, don’t set the target on the color coating enterprises that manufacture low-grade products. The money is on them, and there may be problems at any time.” Shen Weigen gave the coil coatings company a support. trick".

However, such "sports" is obviously difficult to cope with the problem of the upstream and downstream extrusion of the entire coil coating industry, as well as the downstream capital coating enterprises.

In addition, coil coatings companies have to imitate new products and new formulations, which will damage the industry's research and development power and affect the industry's ability to innovate.

According to Ma Guohe, at present, the coil coating industry has the saying that “developing new formulas is not as good as buying formulas, and buying formulas is not as good as counterfeiting”. Coil coatings companies “in the development of new varieties and purchase of new formulas, even mimicking the new formula of the balance, tend to lean toward the latter. The major hazard of counterfeiting new formula is to hurt the profitability of new products, contusion of new product development "Power", "The profit of new products is short-lived, and there is no certain continuity, which leads to insufficient investment in R&D of the entire industry."

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