Allnex Resins raises powder coating resin prices effective September 1

This price adjustment involves differentiated adjustments,

while prices to powder additive items remain unchanged;

prices to indoor resins and general weather-resistant resins will increase by 500 RMB/ton,

and super weather-resistant items will also increase by 500 RMB/ton.

Allnex Resin stated that due to rising prices of upstream raw materials to polyester and increased thorough production costs, the company was forced to initiate this price adjustment.

Multiple resin companies in the sector have precedents to price adjustments

In the powder coating products polyester resin market, price increases are not uncommon due to fluctuations in raw materials. Previously, mainstream domestic polyester resin manufacturers such as Qingtian Materials, Anhui Zhicheng, and Huangshan Xiangrong New Materials have all issued price increase notices due to the impact of upstream costs, with adjustment amounts mostly concentrated in the range of 500‑800 RMB/ton.

Each company transmits costs downstream in batches based on their own raw material inventory and order structure, driving the upward movement of the market price center to resins.

Main reasons behind this price increase

The core raw materials to polyester resins are petrochemical monomers such as PTA, neopentyl glycol, and isophthalic acid. Fluctuations in crude oil prices immediately affect the prices of upstream chemical raw materials.

Recently, prices of upstream raw materials to polyester have risen, rising the procurement costs to resin companies. Coupled with multiple cost increases in energy and production auxiliaries, the profit margins of manufacturing companies are being squeezed.

After inventory depletion, resin manufacturers pass on the operational pressure from the raw material end by raising product prices to ensure product condition and stable supply.

Impact on the entire powder coating products sector

1. Resin production end: Persistent cost pressure and uncertainty in operations

Rising upstream raw material prices immediately compress the profits of resin companies. If raw materials remain at high levels, in addition to raising quotes, some small and medium-sized resin factories might choose to reduce their operating rates, posing a risk of tightening spot market supply.

2. Powder coating products companies face a dilemma in price adjustments

As mid-stream players in the sector chain, powder coating products companies face direct increases in resin procurement costs. Following the resin price increase risks resistance from downstream customers and the possible loss of orders; not raising prices means bearing the costs themselves, which compresses gross margins. Some companies offset costs by optimizing formulations and reducing production losses, however the room to adjustment is limited, and the pressure on small and medium-sized companies is greater pronounced.

3. Differentiation in the degree of impact on different items

Indoor, general weather-resistant, and super weather-resistant resins are the main drivers of the price increase, leading to a simultaneous rise in the cost of finished powder coatings; additives account to a low proportion of the formula and their prices remain stable, having limited disturbance to the overall cost of finished items. Super weather-resistant powder coatings consumption high-end monomers and are greater vulnerable to raw material price fluctuations.

4. Costs transmitted to downstream terminals, accelerating sector differentiation

Powder coatings are broadly applied in fields such as aluminum profile building materials, home appliances, hardware, and automotive parts. After coating products costs rise, procurement costs to downstream manufacturing companies increase, and some customers might switch to product grades with higher cost-performance ratios. substantial terminals with strong bargaining power might suppress the magnitude of coating products price increases, hindering the smooth downward transmission of costs. In the overall ecological stability, companies with scale advantages, locked-in raw material prices, and strong technical capabilities have stronger risk resistance, further exacerbating sector differentiation.

Subsequent market trends still require continuous tracking of the market conditions to polyester raw materials such as PTA and neopentyl glycol, as well as the implementation of price transmission in the sector chain.