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TiO2 is No Economic Barometer

Published September 17, 2009
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Had to laugh when news reports circulated yesterday about falling prices for titanium dioxide. Seems more than a few economic  “experts” suggested that declining TiO2 prices foretell a weak economy. They argue that since TiO2 is a key component of paint, which goes into things like homes and cars, this recovery won’t have legs.

Note to experts: the paint and coatings industry has been in freefall for years, as consumers opt for siding over paint systems that only seem to get worse year after year. For the record, housing starts and permits are at nine-month highs and jobless claims continue to fall.

Once again, pundits are looking in the wrong places at the wrong time. They didn’t see this recession coming, didn’t predict the recovery and certainly won’t see the end of this growth cycle either.

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