Finance

Painting your house? You are now more expensive due to higher paint prices

The Dutch AkzoNobel, one of the largest paint makers in the world and known for brands such as Flexa, Cetabever and Sikkens, passes on the higher production costs. Prices have already been increased this year and more will be added.

9 percent more expensive on average

In the third quarter, AkzoNobel’s paint prices will be on average about 9 percent higher than in the same period a year earlier, AkzoNobel announced.

The group not only produces paint for consumers, but also paint for cars and ships, among other things. The company does not want to say by how much the price for a jar of off-white for your living room will increase.

Praxis: paint more expensive

Praxis also notices that the prices of paint have risen. The chain of hardware stores has to pay more to AkzoNobel, among others. That has been passed on to customers in the store, says spokesperson Daphne Watrin. She would not say how much the retail prices have now been increased.

Furthermore, it does not say by how much prices will be increased in the third quarter. Praxis has been informed by AkzoNobel about price increases, but it is still being discussed internally.

Gamma: higher purchase prices

Gamma also notices that paint producers have increased their prices, says Desiree Schelle, communications director. “The prices of raw materials and transport are rising all over the world, we are also noticing that and that certainly also affects our purchase prices and our sales prices.”

Schelle does not know how much more expensive a jar of paint or stain at Gamma is now.

Akzo prices are already 3 percent higher in the second quarter

The prices that AkzoNobel charged to customers in the second quarter were on average 4.5 percent higher than a year earlier. The price for decorative paints that you use at home for your fence or ceiling was about 3 percent higher in the second quarter. Other types of paint had therefore become even more expensive.

It seems likely that with a further increase in paint prices by AkzoNobel in the third quarter, decorative paints will also become more expensive.

Commodity prices 20 percent higher

The group itself says that it expects raw material prices to be about 20 percent higher this year than last year and that it is on track to pass on those price increases. Raw material prices are roughly half of AkzoNobel’s total costs, so it is likely that the company will raise prices by about 10 percent this year.

This would mean that, after the price increase of approximately 9 percent in the third quarter, a small price increase is on the way in the fourth quarter. It has not yet announced how that will be distributed among the different types of paint. Furthermore, the situation can always change if raw material costs rise more or less than AkzoNobel currently expects.

Historic and Sigma also more expensive

AkzoNobel is not alone in raising the prices of paint. The large American paint producer PPG Industries, which makes the paints and varnishes of Histor and Sigma, among other things, also warned of higher paint prices as a result of supply problems and increased raw material prices.

The company raised prices by 5 percent to offset the additional costs incurred.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button