Paint industry forecasts for 2023
How is the market recovering? Which markets have more opportunities?
With the full release of the domestic Covid 19, paint enterprises and dealers have more expectations for the operation of 2023, how will the paint market recover in 2023? Which paint markets will have more opportunities?
01.Domestic paints market demand first down after up.
Paints market demand and domestic economic recovery is synchronized, with the country into the post-epidemic era, all over the country to open up, people from "do not let out" into "dare not go out", employee infection caused by the factory production affected, logistics delay, domestic economic development is facing great pressure.
According to the prediction of Zhong Nanshan's team, the first wave of infection in Guangzhou is expected to peak in mid-early January to mid-February next year, and enter a stable stage in mid-early March. It is optimistic that the pre-epidemic living conditions can be restored in the first half of next year.
Therefore, in the first half of 2023, the domestic economy will still face the short-term impact of the epidemic, paints market demand continues to be depressed. In the second quarter of next year at the earliest, at the latest in the second half of the year, China can return to the living conditions before the epidemic, the paint market demand will be greatly increased.
02. Corporate profits have been repaired to varying degrees.
In 2022, due to currency overissue, global supply chain disturbance and other factors, raw material prices continue to be high, while domestic continuous control and isolation lead to low demand in the paint market, paint enterprises have to endure high costs, "losing money" selling paint, many paint enterprises profit statement is terrible.
In 2023, two unfavorable factors affecting the profit of coating enterprises will weaken. First of all, overseas interest rate hikes and monetary tightening policy, the price speculation of bulk raw materials will be suppressed, the cost of paint enterprises will be greatly reduced; On the other hand, the domestic epidemic, economic recovery, paint market demand will be greatly improved. Under the double good, the profits of most domestic paint enterprises will be repaired compared with 2022.
In addition, as US interest rates continue to rise, dollars will flow back to the US, the global economy will weaken and the effects of the Russian war on global supply chains will be repaired. Therefore, the global bulk raw material speculation will be contained, the cost of coating enterprises will be reduced. Domestic economic recovery, paint product prices will be stable for a period of time, the second half of 2023 domestic paint enterprises production capacity release, some paint enterprises in order to seize the market, may take measures to reduce the price of promotion.
To be continued.