Published on June 16, 2014

The paint makers are set to have a pretty colorful bottom-line by the end of the first quarter. One of the Market leaders, Asian paints and another leading player Berger Paints both has raised prices recently on hardening raw material prices that were stable all along.

Market players said that raw material prices have been stable expect some cost pressure from vinyl acetate monomer and other imported chemical that are used for raw materials. Industry analyst predicts that raw material prices will not go for hike again in near term. Asian Paints took a price hike of 1% in May followed by 1.2% in June.

Source said that the paint makers have hiked prices twice in the current quarter, which will in turn report better margins in the first quarter (April-June) if the demand scenario remains stable. In addition to rise in prices of raw materials coupled with currency movement are impacting the costs of materials many of which are linked to crude oil prices.

In paint sector demand conditions have remained resilient despite overall sluggish economic environment. For the current week industrial sources said that paints are gaining momentum in the market. Market players said that currently they are shifting from solvent based coating to water based coatings due to increased demand of water based coatings.

According to industry analysts water based coatings now account for most of house-hold paint demand in developed countries and is gaining ground in developing countries too. Current news industry insight says that increased demand of auto and white goods are resulted in the rise of demand of decorative and industrial paint and due to that demand of related chemical are increasing.