“At the same time of markup, corporations should pay more attention to the improvement of their products value. Blindfold markup will bring in vast negative effect.” Xiao Yuying, vice manager of Guangzhou Pearl River Group Co., Ltd. figured in its New Product Release.

    Pearl River Delta is one of the main production bases of coatings in our country. The biggest problem we face is the dramatically increase of raw materials prices. In early this year, the prices of coatings continued increasing because of the increase of oil price. Oil coatings prices in Guangzhou increased since August, and the amplitude was more than 30%. Xiao Yuying said, “Take solvents for example. The material price at the beginning of this year was 4 000 yuan/t, while the price in August was 8 000 yuan/t. The highest price was even 8 750 yuan/t.”

    In the face of this crisis, many coating manufacturers raise coating price, but the state-own large corporations, such as Guangzhou Pearl River Group, transferred to exploit high-grade coating market, escaping from malignant price competition.

    As for market of later this year, Xiao Yuying stated, “The coating price in August in August has reached the highest point. It must come down later and will be stable during strengthen of government’s microscopical control.”

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