National Bureau of Statistics declared the data of our macroeconomics in former three quarters this year. The data stated that our GDP had increased by 9.5%. However, the profit of coating, ink and colorant industry only increased by 3.4%, which was a lower amplitude compared to the former half year.

    Firstly, the macro-control has resulted notable influence on architecture, automobile, mechanics and steel industries. From January to September, all the real estate corporations exploited 122 million m2, 30.8% lower than last year. The output of automobiles was 1.7651, which was the lowest amplitude since we entered WTO.

    Because architectural coatings, automotive coatings and anticorrosion coatings take up most shares of our coatings market, the development of these industries will influence the demand for coatings consequentially.

    The data from National Paint & Coatings Industry Information Center showed that the total output of former three quarters was 2.1123 million tons, increasing by 22%. However, the amplitude is becoming lower and lower, from 21.3% in July to 15.1% in August and to 11.4% in September, which is the direct reflection of decreasing demand.

    Secondly, the sharp rise of oil price resulted sharp rise of coatings raw materials. At the same time, the transportation cost and resource cost also increase to a large extent, which also stroke the coatings manufacturers.

    Recently, China Bank has adjusted up the deposit and lending rate for the first time sine 9 years, which declared another wave of macro-control. This adjustment made a new round of impact in real estate and automobile industries, which will also make a more austere situation for coatings industry.

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