The disadvantages of the market development in China's paint industry are increasingly prominent

The business club reported on January 4 that the average weekly turnover in most cities across the country fell sharply from the same period of last year. The continuous downturn in the property market has not only brought confidence to wait-and-see buyers, but also allowed the market to start guessing whether China's regulation and control policies will loosen.

According to the report, residential sales volume and amount in September increased by 9.5% and 10% year-on-year, and they were up 13.5% and 25% month-on-month. The report on real estate prices in 70 cities issued by the National Bureau of Statistics showed similar conditions, but the pace of the slowdown was moderate. The increase in unweighted average prices of new and second-hand houses fell further to 3.8% and 2.4%, respectively, during the same period. In addition to the price data, the area of ​​new construction in China's real estate industry has obviously slowed down. The area of ​​newly started construction in September increased by 8.9% year-on-year, which was a decrease from the 25% year-on-year growth rate in the first eight months of 2011. The year-on-year growth rate of new housing starts slowed from 22.6% in the previous August to 11%. between. In the long run, the price correction will help improve income and wealth distribution, and promote economic restructuring and urbanization.

Li Daokui, director of the China and World Economic Research Center at Tsinghua University, said at the HSBC Fortune Forum on October 29. "I haven't thought that the restriction policy that has already been issued will be easily retracted, or it may be gradually fine-tuned, but it will not be possible to move back quickly. The Chinese economy has relied on land sales and the rapid rise in real estate prices. This development model has passed. ."

When the retention of the purchase restriction policy caused people to discuss, they were participating in the G20 summit. Premier Wen Jiabao gave the answer. On November 6th, Wenyue stated in St. Petersburg, Russia that China's downward adjustment of housing prices is a firm national policy. Adjusted housing prices will enable the people to accept and also make the real estate industry develop in a healthy and orderly manner. Wen Yan emphasized that "a series of regulatory measures for real estate must not be shaken in the slightest. Our goal is to return home prices to reasonable prices."

The firm voice of the Prime Minister sent a final signal to the real estate industry. Although many real estate developers firmly believe that restricting purchases is only a policy as long as they do not write the law, there will be a day of cancellation. They are holding their hearts and waiting for the time to come. . However, they have forgotten that if China does not want to change the policy and the law is a force, as long as it does not change will continue for five years, or even ten years.

The home improvement market has a lot to do for home improvement, furniture, and furniture companies to set up cooperation with each other. Apart from considerations for developing business ideas, there is also an important reason to work hand in hand with the current sluggish market environment. Affected by the frequent suppression of the national real estate regulatory policies, this year's upstream real estate transaction situation is not optimistic, which directly affects the downstream household industry. However, it is gratifying that domestic companies, including home improvement, are still very optimistic about the future of the industry, and they all agree that companies will finally laugh.

“Some people said that we should not be too happy because the trading of rough houses in large and medium-sized cities was affected. But I don’t think so. The demand for rough houses in the third and fourth tier cities has only just begun. What's more, the old market transformation market is in Beijing. First-tier cities such as Shanghai are also very good. There are many customers who need secondary renovations.” Zhang Jian pointed out that there are also very many customers and tooling customers who need minor renovations. If companies do a good job of designing procurement platforms, they will become one. New increments.

Regarding the crisis in everyone's eyes, Li Taiyan, president of Yuen Chau Decorations, though he thinks the duration will be long, does not feel that business will be affected. In his view, only bad companies do not have a bad market, and the demand market still exists. This is the time to test the merits of the enterprise. “We are not taking this opportunity to optimize the industrial chain and eliminate the unnecessary channel costs in the industry chain through the integration of upstream and downstream resources. I remember that in 2003, there were 100 home decoration companies in Beijing that wanted to be a national brand, after 2008 International Finance. Only about 10 survivors survive the crisis. After this time, there will be fewer companies that survive the elixir, but they will leave the best.” Li Taiyan said.

The growing market for paint consumer titanium dioxide is a very important raw material in the paint production process and is closely related to real estate. In the years of “boiling” in the real estate industry, titanium dioxide has also grown and grown. The close relationship between titanium dioxide and real estate is self-evident. Titanium dioxide scientific name is titanium dioxide, widely used in coatings, plastics, paper, printing ink and other industries, and people's lives are closely related. The data show that in 2010 the annual production capacity of titanium dioxide exceeded 2 million tons, and the apparent consumption exceeded 1.4 million tons. China has become the world’s largest producer and consumer of titanium dioxide.

Since 2010, the global titanium dioxide market has continued to heat up, driving the price of titanium ore titanium dioxide to rise, which has triggered a shortage of raw materials for titanium ore, causing a panic in raw material supply. The domestic titanium dioxide began to be tight in the second half of 2009. Since the real estate industry has just recovered from the downturn in 2008, the retaliatory rebound of real estate, the geometric growth of housing transactions, and the price increase by leaps and bounds. Titanium dioxide sales are also rising.

After the paint market entered a slump in 2011 after the introduction of measures to limit purchases, real estate had a stalemate. At the same time, the price of titanium dioxide began to decline in July. “Golden 9 Silver 10” also failed to save the tide. The price of titanium dioxide in October 2011 was already close to the price at the beginning of the year. After the "Silver 10," the titanium dioxide market in November was still holding cold. The price market was still unclear. The dealers "fight the market" with more emotion. Most manufacturers in the country have corresponding price adjustments. "Price wars" and "market wars" continue. The price stimuli among enterprises still play a role. The ex-factory price of a large-scale producer in the southwest region is less than 17,000 yuan/ton, which has captured most of the domestic market share. This move may accelerate its IPO process. The large-scale price adjustment of enterprises is a challenge to corporate profits. The price of raw titanium concentrates is weak, the downstream demand market is weak, and the downturn in corporate profit margins is even more serious. Titanium dioxide is expected to fall below the price of 16,000 yuan / ton at the end of the year.

The downturn in the real estate industry has a great impact on titanium dioxide, but as companies cannot choose the external environment, they must make changes to themselves to adapt to changes in the environment. The recovery of European and American aviation industry began in 2011. The demand for titanium for aviation has risen sharply. The titanium market in Europe and the United States will enter a new growth cycle. China's large-scale aircraft project has already been launched. It is expected that the amount of domestic aviation titanium will increase significantly in recent years. These are good opportunities, as companies must have a good sense of smell to discover opportunities, and thus change strategies so that companies can achieve profitability in new ways.

However, the titanium used for aviation has a high standard and a high purity requirement, which is an improvement over titanium dioxide for construction. This requires companies to extract from resources, use titanium to purify the purity of titanium, titanium finished products must reach the standard of high-end titanium, which requires companies to actively study, improve technology, in the field of high-end titanium dioxide industry has an early place.