1  Overview of Production and Operation in the Coatings Industry

In the first three quarters of 2023, the paint industry was generally in a steady recovery period. Firstly, the growth rate of production turned from negative to positive at the beginning of the second quarter, entering a period of steady growth. The decline in the growth rate of main business revenue gradually narrowed, and the monthly average growth rate of total profit increased from negative to positive at the beginning of the second quarter and entered a period of high growth (see Figure 1), which is closely related to the comprehensive factors of raw material prices and the paint market this year (see Figure 2).

Fig. 1  2023 Monthly Economic Operation Growth Rates of China Coatings Industry

Figure 2 Dual Index of Coatings Industry

From January to September 2023, the total production of the paint industry was 26.911 million tons, a year-on-year increase of 4.7%. The production in September increased by 11.3% compared to August. From January to September, the total revenue from main business of China’s paint industry was 299.3 billion yuan, a decrease of 4.2% compared to the same period last year, and the total profit was 17.64 billion yuan, an increase of 11.7% compared to the same period last year. On a month on month basis, the main business revenue in September increased by 5.0%, and the total profit decreased by 16.9%.

2  Introduction to Import and Export of Coatings and Inorganic Pigments

2.1  Overall data on the import and export of coatings and inorganic pigments (see Tables 1 and 2)

Table 1 Coatings and Pigments Export Data for January-September 2023

Table 2 Coatings and Pigments Import Data for January-September 2023

2.2  Analysis of Import and Export Data in the Coating Industry

In the field of coatings, the export data from January to September continued to grow overall compared to the same period last year, but there was a slight increase in export volume and export amount compared to January to August. Accumulated exports of 191400 tons, an increase of 18.87% compared to the same period in 2022, with a total export amount of 665 million US dollars, an increase of 10.90% compared to the same period in 2022 (see Table 1). Accumulated imports amounted to 1100000 tons, a decrease of 21.70% compared to the same period in 2022, with a cumulative import amount of 1.165 billion US dollars, an increase of 2.57% compared to the same period in 2022 (see Table 2).

On a month on month basis, among the export goods of coatings, the prices of ethylene polymer varnish and paint increased by 119.52% on a month on month basis, reversing the trend from August. The prices of f l u ororesin products continued to rise on a month on month basis, reaching 25.23%; The export prices of acrylic paint and varnish decreased by 10.36% month on month.

In the imported goods of coatings, the prices of polyester, acrylic, epoxy resin paints, and varnish increased by 7.75%, 7.17%, and 14.27% respectively month on month, with significant increases. The prices of ethylene polymer, f l u o r i ne resin paints, and varnish decreased by 16.43% and 11.39% respectively month on month.

2.3  Analysis of import and export data in the field of titanium dioxide

In the field of titanium dioxide, the export situation from January to September maintained a basic continuation of the previous trend, with a cumulative export volume of 1.2546 million tons, a year-on-year increase of 16.94% (see Table 1), and a cumulative export amount of 2.738 billion US dollars, a year-on-year decrease of 12.48%; The import situation continues to maintain a sharp decline, with a cumulative import of 56200 tons, a year-on-year decrease of 47.56%, and a cumulative import amount of 196 million US dollars, a year-on-year decrease of 49.11% (see Table 2).

On a month on month basis, the export situation in September has increased significantly compared to August, with a monthly export of 145000 tons, a month on month increase of 5.45%, and a monthly export amount of 314 million US dollars, a month on month increase of 7.30%. The average export price for this month is 2168.76 US dollars/t, approximately 15835.20 yuan/t; The monthly import volume was 6800 tons, a decrease of 26.41% compared to the previous month. The monthly import amount was 23 million US dollars, a decrease of 22.82% compared to the previous month. The average import price for this month was 3392.7 US dollars/t, equivalent to RMB 24771.80 yuan/(the exchange rate is calculated based on the closing price of USD to RMB on September 29th, which was 7.301500).

In terms of regional distribution of exports, the countries and regions with the highest month on month growth rate and high proportion of exports are mainly Brazil, South Korea, the United Arab Emirates, Egypt, Poland, Pakistan, Israel, and the Netherlands (see Figure 3), with growth rates of 17.58%, 29.00%, 40.00%, 66.92%, 30.63%, 74.03%, 129.62%, and 107.72% respectively; Türkiye, Russia and Vietnam saw a large month on month decline, reaching 23.74%, 18.88% and 13.49% respectively (see Figure 4).

Fig. 3 Distribution of Titanium Dioxide Exports to Key Countries and Regions in September 2023

Fig. 4 Month-on-month Growth Rates of Titanium Dioxide Exports to Key Countries and Regions in September 2023

2.4  Analysis of Import and Export Data in the Field of Iron Oxide Pigments

In the field of iron oxide pigments, the export situation from January to September has slightly narrowed compared to the previous decline, but the month on month export growth rate has strongly declined. From January to September, the cumulative export volume was 209900 tons, a year-on-year decrease of 27.56% compared to the same period in 2022, slightly narrowing the decline. The cumulative export amount was 241 million US dollars, a year-on-year decrease of 36.25% (see Table 1), and the decline was basically balanced compared to the previous month; The cumulative import volume was 110000 tons, a decrease of 7.92% compared to the same period in 2022. The cumulative import amount was 59 million US dollars, a decrease of 21.09% compared to the same period in 2022 (see Table 2).

On a monthly basis, the export situation in September has significantly weakened compared to August. The monthly export of iron oxide pigments was 26000 tons, a decrease of 0.06% compared to the previous month, a decrease of 14.70 percentage points compared to August. The export amount was 26 million US dollars, a decrease of 0.18% compared to the previous month, a decrease of 10.02 percentage points compared to August. The average export price for this month was 1012.23 US dollars/t, about 7390.80 yuan/t; In September, the import of iron oxide pigments was 13700 tons, a decrease of 3.42% compared to the previous month. The import amount was 07 million US dollars, an increase of 3.59% compared to the previous month. The average import price for this month was 520.35 US dollars/t, about 3799.34 yuan/(the exchange rate is calculated based on the closing price of the US dollar against the Chinese yuan on September 29th, which was 7.301500).

From the perspective of regional distribution of exports, the countries and regions with large month on month growth and high proportion of exports are mainly India, Türkiye, Vietnam, Mexico, Pakistan, Nigeria, the United Arab Emirates, etc. (see Figure 5), with a month on month growth of 46.79%, 95.24%, 20.20%, 16.51%, 152.79%, 25.03% and 39.15% respectively compared with August; The countries and regions with a high proportion of decrease in exports compared to the previous month are mainly Russia, South Africa, South Korea, Australia, Belgium, the UK, and Thailand, with a decrease of 8.05%, 30.93%, 41.19%, 15.86%, 26.51%, 27.74%, and 13.99% respectively compared to the previous month in August (see Figure 6).

Fig. 5 Distribution of Iron Oxide Pigment Exports to Key Countries and Regions in September 2023

Fig. 6 Month-on-month Growth Rates of Iron Oxide Pigment Exports to Key Countries and Regions in September 2023

Overall, the paint industry will maintain steady growth in the second half of 2023. In the future, China's paint industry will solidly promote high-quality development in accordance with the requirements of the 14th Five Year Plan for green paint development, sustainable development, and carbon reduction work.