Coating market 2005, brightness and gloom coexistence

The cost of raw material increase rapidly, it is one of serious problems which coatin manufaturers encountered in 2005. The tension of energy supply and expenditure increase make the cost increase of epoxy, crylic acid, etc; it directly effect the production cost of coating. Market experts belief that the supply of crylic acid is still in tension in 2006, the demand will increase 3% to 5% and exceed the supply.
For example,the sale in first quarter increase 11.1% in coating company Valspar, but the net income decline 36%; it indicated that the cost of raw material incrase rapidly and has great negative impact on profit.
Meanwhile, the consumption of coating continually increase in the world, Chemark Consultant Group forecast that the total consumption of coating will increase 4.7% in 2005, the growth rate are 3.1% in North America, 3.4% in EU, 5.5% in Asia, 4.5% in other area; Asia, especially in China, the market increase is in top of the world.