Friday, July 03, 2015

With 1st half bad, paint industry designs fall more than 5% in 2015 7/3/2015 03:00

After a first half with underwhelming performance, the paint industry estimates already close 2015 with a retraction over 5% in sales volume. The number represents a worsening scenario compared to the end of 2014, when the Abrafati (Association of area) projected for this year at least a total stability. "Practically all markets we serve have been severely affected," says Dilson Ferreira, Chief Executive of the entity. The automotive repair coatings segment, the only one whose business remained high until the beginning of this year, also went into the red in May and June. Sales for the automakers, in turn, affected by the crisis that the sector faces vehicles and closed the half with a decrease of about 20%. "Although it is not our biggest buyer in volume, the automotive area has the greatest technology products and added value. That is why the fall is even more significant, "says Ferreira. Responsible for the majority of sales (62%), real estate inks retreated 4% in the first half. In addition to the retraction in volume sold, manufacturers have faced pressure in prices of raw materials because of the appreciation of the dollar, says the Executive. On average, 60% of inputs used by manufacturers of paints are imported. "The fall [in price] of oil in the international market did not arrive in proportion to the raw materials and also was masked by the devaluation [of reality]."
Folha - 03/07/2015
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