Paint Market Longevity Real Estate New Deal Accelerates Industry Reshuffle

Will the New Deal of 2011 Real Estate be Effective? Will the building materials industry be involved? A series of questioning sounds come.

From last year’s “Four Nationalities”, the “Notice of the State Council on Resolutely Curbing the Rapid Increase in Housing Prices in Some Cities” (ie, the new “National Ten Articles”) was promulgated, further refining and perfecting the new “National Four Articles,” followed by “State Eight Articles.” "These are all to curb high prices.

There are severe measures in the new “National Ten Articles”, such as differentiated credit and tax policies that point to speculative investment in home purchases and all kinds of real estate speculation. For families purchasing ** second homes, ** The initial payment must not be less than 50%.** The interest rate must not be less than 1.1 times the benchmark interest rate. In addition, it has also been proposed that commercial banks can suspend the payment of third- and higher-priced housing in the areas where commodity housing prices are excessively high, are rising too fast, and are in tight supply. It also issued an “external restraint order” on the behavior of real estate speculators, and stipulated that “non-residents who are unable to provide proof of local tax payment or proof of social insurance payment for more than one year should be suspended from purchasing housing purchases**”. At the same time, local governments can take temporary measures based on actual conditions, limit the number of home purchases within a certain period of time, and authorize local governments to take any “no-buy” actions.

The elimination of storm dust has been known to the industry, and the government that has been hotly debated and concerned has eliminated the list of backward production capacity. It was finally settled in the last month of last year. In December, the Ministry of Industry and Information Technology released its No. 122 announcement on its official website - "Guidelines for the elimination of backward production equipment and products for some industries (2010 edition)." According to the backward production list, there will be 19 types of paint products that will be eliminated, and the “elimination storm” will be engulfed by the backward production capacity of the paint industry. The industry generally believes that with the government's macro regulation and control of the industrial sector, especially the strict control of environmental protection policies for energy conservation and emission reduction, the introduction of the New Deal will once again accelerate the paint industry's reshuffle, but also the "structural adjustment" of the main performance. Of course, when the policy is introduced, the first thing to be solved is how to implement it effectively.

According to the labeling of No. 122 Announcement, it was found that the coatings involved include interior and exterior wall coatings, waterproof coatings, automotive paints, marine paints and many other fields, including polyvinyl alcohol and its acetal interior and exterior wall coatings (106, 107 coatings, etc.) ) The content of harmful substances exceeds the internal wall paints and colorful interior wall paints of the "Restriction of Harmful Substances in Interior Decoration Materials for Interior Wall Coatings" (GB18582) (The resin is mainly *****, and the solvent is mainly xylene. O/W paints), solvent-borne wood coatings exceeding the standards of "Hazardous Substances in Indoor Decorating Materials for Solvent-based Wood Coatings" (GB18581), vinyl chloride-vinylidene chloride copolymer emulsion paint, polyacetic acid Ethylene emulsions (including ethylene/vinyl acetate copolymer emulsion) Exterior wall paint, harmful substance content exceeds the "Restriction of harmful substances in architectural exterior paints" standard for exterior wall coatings, tar type polyurethane waterproof coating, water-based polyvinyl chloride tar Waterproof coating, modified starch coating, antifouling coating containing organic tin, coating containing tributyl tin, red lead, coating containing ***, containing isocyanide Triglycidyl uronic acid (TGIC) powder paints, toy paints with harmful substance content exceeding the standards of “Hazardous Materials Limits in Toy Paints”, automotive paints with content of harmful substances exceeding “Standards for Harmful Substances in Automobile Coatings”, benzene-containing , phenol, benzaldehyde and bis (trichloromethane) paint remover, polyvinyl chloride waterproofing joints (tar type).

In the past few years, the high growth of China's real estate, automobiles, ships, bridges, and wind power and new energy projects has provided the paint industry with a huge living space. The paint industry in China has developed rapidly, but behind the entry threshold Too low, driven by interests, including small workshops, small businesses, and a large number of companies entering the paint industry. Among them, the products they produce are inferior to shoddy and fake. These behaviors have affected the image and development of the industry. It is undoubtedly a harm to companies that value technology and brands. This is why in recent years, China's coating output has reached new heights, but it has always been the reason for the "great power" of paints, rather than the embarrassing status of paint "powerful nations." To this end, in 2010, the industry has attracted the "Innovation, Harmony, Responsibility, and Influence" paint summit forum, trying hard to eliminate backward production capacity, and to achieve a "big to strong" gorgeous turn to become the honored guests Hot topics. The Ministry of Industry and Information Technology released the "Guided Catalogue on the Elimination of Obsolete Production Process Equipment and Products", showing that the country's determination to suppress backward production capacity is also in line with the demand for the healthy development of the paint industry and has gained widespread recognition.

The requirements of the No. 122 Announcement once again showed the "iron hand measures" for the government to eliminate backward production capacity. For example, the bulletin stipulates: "The obsolete production process equipment and products listed in the catalogue shall be phased out within the prescribed time limit and shall not be transferred, produced, sold, used, or adopted." Modified asphalt waterproofing rolls with an annual output of 5 million square meters or less As an example of the material production line, the “Catalogue” requires the relevant authorities not to approve and approve new investment projects for a modified bitumen waterproofing membrane production line of 5 million square meters or less. The relevant management departments will not apply for production licenses and have issued production licenses. We must withdraw it according to law. In other words, the new policy not only involves the construction of a new waterproofing membrane production line, but also includes the requirements for the production capacity of the existing coil production line. In general, the new policy has improved the barriers to entry of the paint industry, which will help improve the overall level of technical equipment in China's paint industry and contribute to the overall strength of the industry.