100% plus - Announcement due, page-39

A TIO2 Plant


A typical TIO2 plant similar to those used around the world start at 100ktpa.

APG have looked at a 100 ktpa plant - ref www.ASX.com.au/ APG.AX/announcements/October 2002

Current tio2 sells US $1,750.00/t +/- was up at $4,250/t ref SEE CHART

100K plant turning out 98% + TIO2 equals revenue at $1,750.00/t = $175 US $240m au -SIMPLE MATHS

Capex costs, operating costs , funding and JV dilution costs need to be taken into account. Nobody knows what that will be.

Source charts and CMC markets

Undercurrent behind TiO2 price rebound in China

With Sichuan Lomon increasing its rutile TiO2 price again, it is already the fifth round of price rise in China’s TiO2 market in 2016. The previous sluggish production in China’s TiO2 factories and the relief of oversupply would help TiO2 price to keep rising in a short time, according to analyst CCM.

The fifth round of price rise begins when Sichuan Lomon Titanium Co., Ltd. (Sichuan Lomon), Chinese TiO2 giant, announced that it raised again its rutile TiO2 price, by USD77.42/t for domestic sale and by USD50/t for export on 22 April, 2016.

In fact, in early April, not only Sichuan Lomon, but also many other domestic TiO2 players such as Henan Billions Chemicals Co., Ltd. (Henan Billions) and Shandong Doguide Group Co., Ltd. have already raised their product prices once again, according to CCM’s price monitor.

Ex-works price of rutile TiO2 in China by region, mid-April 2015–mid-April 2016
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Source: CCM

“It can be sure that the fifth round of price rise in China’s TiO2 market has come, with the market price increased by USD309.75/t compared with the price in early Jan,” said Dean Wu, editor of Titanium Dioxide China Monthly Report, CCM.

“The price would keep rising in a short time,” Dean predicted.

As of 4 May, 2016, the mainstream quotations for sulfate grade rutile TiO2 in China has reached USD1,781.15/t and those for anatase TiO2 has increased to USD1,517.85/t, according to CCM.

“China's TiO2 market has finally turned into a seller's market. And TiO2 manufacturers, no longer burdened by inventory pressure, regained the confidence to raise their product prices,” said Dean.

In fact, early in March 2016, He Benliu, general manager of Henan Billions, once stated that the company's inventory level was lower than in the corresponding period last year and that supply is struggling to meet the increasing market demand.

In addition, a variety of supporting factors have been helping China's TiO2 industry to get out of the rut that it finds itself in and flourish again.

The increasing price from global TiO2 players gives China’s players confidence to raise their prices.

At the beginning of 2016, global TiO2 magnates such as The Chemours Company, Cristal Global and ISK have been raising their product prices. As of now (4 May), the market price of TiO2 has increased by USD300/t compared to that in Jan. 2016.

Additionally, a series of favorable policies in China have been released to support the domestic real estate industry, which would help boost the China’s TiO2 market.

Source cmc markets

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