Selling Prices Are Up, but Raw Material Costs Keep Pace

Multinational paints and coatings producers reported improved sales volumes in the second quarter of 2011, citing continued strong demand in emerging markets. Those gains, however, were partially offset by rising raw material costs, which outpaced hikes in selling prices and resulted in mixed earnings results. Demand remained weak in mature markets, especially in the architectural paint sector, producers say. Paint makers expect raw material costs to continue rising in the second half of this year, and they plan to counter rising costs with selling-price hikes as...

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