GREY:ARGEF - Post by User
Comment by
MolyMadeMeRichon Oct 27, 2011 12:35am
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Post# 19185238
RE: Yahoo
RE: Yahoo
Quebec 40% Rebates on Equipment Expenditures
Expenditures on equipment in the province of Quebec will garner a 40% rebate from the Provincial
Government, up to an aggregate rebate of $75 million. This will result in elevated net after-tax
profit margins for the first four years of production at 80% in 2013, falling to just under 50%
thereafter. Excellent net margins are the result of product price assumptions but also the low
capital and operating expenditures of the CTL process.
Prices should continue to rise through mid decade
High purity TiO
2 sells at over $3,000 per tonne. Demand is forecast to grow between 4-7% p.a.
through to 2020. Dupont, which dominates the TiO
2 market, cited double-digit growth in sales of
TiO
2 to paint producers in the second quarter. Recently, Dupont raised TiO2 prices yet again in Asia
and Latin America by $500/tonne. Other producers are following this lead. TiO
2 prices have been
rising so rapidly that paint manufacturers and other end-users are eager to see another source of
supply from a safe jurisdiction such as Canada to help control costs.