Epoxy curing agent Market 2018 TDI consumption analysis of furniture industry

2018 TDI consumption analysis of furniture industry

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<b>2018 TDI consumption analysis of furniture industry</b>

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1. 2018 real estate and furniture market

The development of the furniture industry is closely related to the real estate industry. In 2018, China's real estate market is still at a high level, but the rapid growth momentum has basically ended. The transaction volume of new houses and second-hand houses across the country was basically the same as last year, and the market began to cool down in the second half of the year. In terms of sales area, data from the National Bureau of Statistics shows that from January to October, the sales area of ​​commercial housing was 1,331.17 million square meters, a year-on-year increase of 2.2%, and the growth rate was 0.7 percentage points lower than that from January to September. Among them, the sales area of ​​residential buildings increased by 2.8%, the sales area of ​​office buildings decreased by 10.5%, and the sales area of ​​commercial buildings decreased by 2.8%.

Against the backdrop of cooling real estate, the growth rate of the furniture industry also slowed down in 2018. According to statistics from China Light Industry Network, from January to July 2018, the output of furniture was 435.2113 million pieces, a year-on-year increase of 0.99%, of which: the output of upholstered furniture was 31.9986 million pieces, a year-on-year increase of 2.38%. In 2017, my country's furniture output was 80703.47 10,000 pieces, an increase of 3.64% year-on-year, of which the output of upholstered furniture reached 59.7136 million pieces, an increase of 10.23% year-on-year, accounting for 7.4% of the total furniture output.

2. Changes in the furniture market structure

As far as the industry structure is concerned, the current domestic upholstered furniture industry market is very fragmented, with many small and medium brands, and the concentration of each segment is far lower than that of the United States. However, as the level of urbanization increases and people have a higher awareness of industry brands, the brand effect gradually emerges, and the "Matthew Effect" in the soft home furnishing industry has become more and more obvious. In addition, leading companies are also strengthening their competitiveness and occupying more market shares through acquisitions and mergers. On October 15, 2018, Xilinmen and Gujiaju both announced that the controlling shareholder of Xilinmen signed a letter of intent for equity transfer with Gujiaju, and Gujiaju acquired no less than 23% of Xilinmen's equity.

In addition, under the background of intensified trade friction between China and the United States, market uncertainty has intensified, and Chinese furniture companies have accelerated their overseas expansion, with the upholstered furniture industry being the most prominent. In addition, furniture brands that previously focused on the domestic market have gradually increased their willingness to invest overseas in order to further expand their market size. A number of A-share/Hong Kong-share listed home furnishing companies have announced their overseas investment. Since 2018, at least 4 A-share and H-share listed furniture companies have carried out overseas production capacity layout, and the trend of shifting to the Asia-Pacific region, especially Southeast Asia, has strengthened.

3. Summary

In general, the growth rate of China's real estate is slowing down, the downward pressure on the economy is also increasing, and the growth rate of per capita income will also slow down. Furniture export, all of the above are negative for domestic TDI consumption, so it is expected that TDI consumption was around 590,000 tons, a slight increase of 2-3% year-on-year.

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