On May 14, Axalta coating system (NYSE: AXTA), the world's leading supplier of liquids and powder coatings, announced that it will increase the prices of its commercial vehicle and auto parts coating products sold in Greater China by 5 -10%, the price adjustment decided to take effect on May 14, 2018. Specific price adjustment information will communicate with customers further.

Axalta said that the most fundamental reason for price adjustment is raw material prices. Titanium dioxide, solvents, isocyanates, monomers, resins and many other key raw materials and packaging materials used in coatings have not yet been eliminated but have continued to soar after a major surge in prices. At the same time, the further strengthening of China's environmental laws and regulations in 2018 suppressed market demand. The dramatic increase in logistics and warehousing costs also brought enormous challenges to the production and operation of coated enterprises. In response to rising cost pressures, Axalta has already begun implementing cost control measures and further intensified efforts to implement a series of more active measures to reduce costs and increase efficiency. This time, the prices of commercial vehicles and auto parts paint products have been raised to ensure that the paint production can remain normal, continue to provide customers with high-quality paint products and services, and help customers grow their business.

It is worth noting that this is the second time Axalta has raised the price of its products in 2018. On March 8th, Axalta Coating Systems announced that it will increase the price of its paint products sold in Greater China by 5-10%. The price adjustment products involved include some refinishes, industrial coatings and transportation coatings. The letter of adjustment has come into effect on April 1, 2018.

As Axald said, Axal’s once again leading the paint industry again is not without warning. It is expected that as the prices of raw materials for coatings are soaring, the days when the paint industry will again raise prices collectively will not be too far away.