Paint companies will face a difficult journey to capacity.

(Xinhua) -- Average prices in China's housing market are expected to rise 2 percent in 2016, according to a recent Reuters survey, continuing to be driven by a loose policy environment and hot cities, but high inventories and overdrafts in demand mean limited annual gains. Real estate investment growth is likely to continue to decline next year, easing high inventories may take more than two years. Guotai Junan (23.24, 0.39, 1.71%) chief macro analyst Ren Zeping believes that: first-tier cities have no land sales, the performance of price increases and "land king" re-emergence; Last year I made a prediction for real estate in China, called "total volume slowdown, structural differentiation". In the next ten years, the number of first-tier cities will double, the number of third- and fourth-tier cities will not rise, and real estate investment will grow at zero. Perhaps the basic market of real estate is so, in this situation,
coatings enterprises for more than
years accumulated "capacity" will face the difficult journey to production capacity.
coatings
enterprises generally feel the pressure, shrinking market, the advent of the era of micro-profit, overcapacity have made the industry generally feel that the paint industry "shuffle" time has come. Big brands in the "price war" although there is a place, but still can withstand a certain amount of market pressure, low-cost impact on the market is more difficult, some even came to an end ... "winter is coming" has almost become the mantra of the industry.
coatings are the largest users of
grade titanium dioxide
grades. In general, the consumption of titanium dioxide in the field of coatings accounted for more than 60% of the consumption of titanium dioxide applications, and it is also the paint industry's largest use of a pigment. China's titanium dioxide enterprises in the paint industry booming during the expansion of production increment, so that when the paint market is weak, showing a weak "tinge" state.
2015 is coming to an end, and the market economy under severe pressure to force many industries to face "failure", titanium dioxide market by the paint market down, in the short term difficult to reverse or continue to "bottom out."