Confidence is more important than gold
The price rise stems from the confidence that after the annual meeting of titanium dioxide, the titanium dioxide market has risen twice in price, and we can say that this year's meeting of titanium dioxide companies gained confidence. At the annual meeting, the industry launched the 13th Five-Year Plan to “tripleize, reduce and redeem†the policy of de-capacity, de-stocking, de-leveraging, cost reduction, and short-cutting, and disposed of “zombie enterprises†to promote the gradual implementation of overcapacity. He Xuan Jie played a certain role in stabilizing the market price during the 13th five-year period.
Economic recovery determines confidence
If the price increase after the annual meeting is due to confidence, then the recent increase is more like the economic recovery has determined. Confidence has disappeared one day, but the stable economic situation has given Titanium Dioxide Enterprise a reassurance. The gross domestic product (GDP) for the first quarter announced on April 15 was 1,582.6 trillion yuan, which was calculated at a comparable price and grew by 6.7% year-on-year. The titanium dioxide downstream market real estate is even hotter, in March the area of ​​commercial housing sales increased by 37.7% year-on-year, and continued to grow rapidly. In terms of prices, the prices of commercial housing in the first-, second-, and third-tier cities in March were 2.9%, 1.1%, and 0.6%, respectively. The growth rate accelerated. The hot end of sales also increased the willingness of local enterprises to start construction. The month of real estate development investment and cumulative year-on-year growth both hit a new high of nearly one year in March.
Post-holiday export volume
The domestic market has improved, and exports have also become a stable camp for titanium dioxide enterprises. According to statistics provided by the General Administration of Customs, in March 2016, the export of titanium dioxide in China was 61,023.482 tons, which was a year-on-year increase of 30.15% and a month-on-month increase of 36.55%. The three countries are India, the United States, and Indonesia. Titanium dioxide total exports in January-March 2016 were 157,724.871 tons, a year-on-year increase of 15.04%. Due to the high cost performance, China's titanium dioxide has an overseas market. If the anti-dumping investigation results do not affect the domestic titanium dioxide enterprises, the export of titanium dioxide in the future will continue to grow.
The stability of the titanium dioxide market leaves us with more illusions; if the domestic economy continues to grow, the policy becomes more in-depth and the confidence of enterprises will be more sufficient, the price of titanium dioxide will further increase.
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