Paint industry reverts fall and see high projection of 1% on year

The Brazilian industry of paints predicts growth of 1% in volume in 2013, against 1.398 billion gallons produced in the previous year. The advance in turnover should be even higher, between 4% and 5%, reflecting high prices, due to the devaluation of the real against the dollar, given that 65% to 75% of the raw materials used are dollarized.
The data were released on Monday (16), the Chairman of the Board of Directors of the Brazilian Association of Manufacturers of paints (Abrafati), Antonio Carlos Lacerda, during the 13th International Conference of paints, in São Paulo. The initial expectation of the Association reverses projection, a fall of 0.4% to the national production of paints in the year.
"We started the year a little more slowly, with the first and second quarters well complicated, especially in paints decorative. But already in the last two months is there a market reaction, "said Lacerda. According to him, the surprise in relation to gross domestic product (GDP) for the second quarter changed the perspective of the sector. "The growth of the market of paints is directly related to the GDP. Since there was a positive surprise in GDP growth, this translates into a breakthrough also demand for paints, "he explains.
The automotive segment must lead the advance, with high of 4% to 5% in 2013-adding original painting and repainting this segment represents 8% of the volume and 15% of industry revenues. "The market is very active with increased vehicle production this year," he says.
Already the most important decorative paints market segment, representing 80% of the volume and 63% of revenues, must be stable, but with high bias for 2014, with the resumption of real estate postings and the prospect of a better economic scenario, which stimulates the painting and repainting of existing buildings. "The real estate releases help enough, because 20% of ink will for new buildings, and the resumption of economic activity makes our big market, which is the reform of painting houses, grow up," says L.
The industrial segment (12% of volume and 22% of revenues), finally, must accompany the advancement of industrial activity, with hopes of also remain stable compared to last year. For 2014, the projected growth of 1% Abrafati above the GDP for the sector.