Raw Material Prices Fluctuate Recently

Raw Material Prices Fluctuate Recently

Since 2026, the upstream raw material market for China’s coating industry has shown a trend of substantial volatility and overall growth. Affected by overlapping factors including international energy fluctuations, centralized equipment maintenance, low inventory levels and supply-demand mismatches, the prices of core coating raw materials such as titanium dioxide, resins, solvents and additives have risen continuously. This has driven up overall procurement costs, become a key factor influencing the operation and pricing strategies of coating enterprises, and triggered a phased adjustment to the cost structure of the entire industry.

Fluctuations in international energy prices and  political changes are the core causes of the latest raw material price swings. Most coating raw materials are petrochemical derivatives, and variations in international oil prices directly affect industrial chain costs. Recently, rising global energy prices and regional supply chain disruptions have pushed up the prices of basic chemical materials including propylene, ethylene glycol and acetone, with some solvent categories recording a monthly increase of over 18%, raising coating production costs from the source. Meanwhile, price adjustments by overseas chemical manufacturers and higher import costs have further strengthened domestic market inflation expectations, resulting in cost transmission across the entire industrial chain.

Imbalanced domestic chemical production capacity and inventory levels have amplified price volatility. Multiple chemical bases have launched large-scale equipment maintenance this year, with over a hundred chemical enterprises suspending quotations and restricting external sales for key products. This has tightened the market supply of essential coating materials such as resins, curing agents and pigments. Current industrial raw material inventories remain at a multi-year low. Coupled with the steady recovery of terminal demand from decoration and infrastructure projects, persistent supply shortages have made raw material prices prone to rising rather than falling, leading to increased frequency and magnitude of short-term price fluctuations.

Price increases vary significantly across different raw material categories, placing prominent cost pressure on core coating products. Titanium dioxide, a fundamental coating raw material, has undergone multiple price adjustments throughout the year with considerable cumulative growth, directly raising the basic production costs of interior and exterior wall paints and industrial coatings. Key raw materials for water-based coatings, including propylene glycol, HDI and TMA special curing agents, have seen sharp increases, with certain high-end raw materials rising by more than 35% and squeezing profit margins of mid-to-high-end coating products. In addition, the prices of carbon black and various functional additives have increased simultaneously, covering the production of decorative, industrial, anti-corrosive and other coating categories and spreading cost pressure across the whole industry.

Fierce raw material price fluctuations have forced the coating industry to shift toward refined operation. To cope with rising costs, leading enterprises hedge market risks through long-term price-locking contracts, large-scale centralized procurement and optimized formula systems to stabilize product quality and terminal prices. In contrast, small and medium-sized coating enterprises face greater cost pressure due to smaller procurement scales and insufficient inventory reserves, further widening market competitiveness gaps. As upstream cost pressures gradually pass downstream, many coating brands have moderately adjusted product prices, driving the industry away from low-price competition and toward quality and value-oriented competition.

Looking ahead, the market will continue to see equipment maintenance cycles, low inventory levels and unstable energy prices in the short term. Coating raw material prices are expected to remain volatile at high levels with little possibility of sharp declines. In the long run, raw material price fluctuations will gradually narrow as new production capacity is released in an orderly manner, supply chains recover and market supply and demand return to balance. Overall, the current round of raw material price adjustments will accelerate the phase-out of inefficient production capacity, promote coating enterprises to strengthen technological innovation, cost control and green upgrading, and boost the high-quality and standardized development of the coating industry.