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09 2020
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COVID-19 and GDP present unique picture for mineral sands

Jan.25 2021      Source:net

Keywords:titanium

Historically pigment demand, and consequently titanium mineral consumption, is linked to GDP.

It is also seasonal – experiencing the strongest demand during North America’s summer when home renovations etc are more prevalent.

However, with the onset of COVID-19 a unique picture has presented.

GDP was drastically down worldwide in 2020. But, with more people housebound and government stimulus incentives, smaller scale home renovations have continued – potentially mitigating some of the impact of a negative global GDP which was predicted to reach -4.4% in 2020.

This was according to the International Monetary Fund’s October 2020 World Economic Outlook report.

In Australia, the Reserve Bank’s November Monetary Policy Statement reveals an expected 4% contraction for the country in 2020.

Both global and domestic GDP are expected to rebound in 2021. The IMF anticipates global growth will strengthen to 5.2%, while the RBA expects Australia’s GDP will increase to 5%.

Both entities caution this is dependent on further virus outbreaks, resultant restrictions, and vaccine roll-outs.

In comparison to the drastic fall in GDP, the erosion of mineral sands pricing and production has been much milder.

Additionally, post COVID-19, government stimulus programs are anticipated in military and infrastructure, which will drive mineral sands demand – particularly in the US and China.

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