Titanium Feedstock Producers Comparative Cost Study

Released: Annually
Titanium Feedstock Producers Comparative Cost Study (FCS) reviews cost versus revenue analysis for producers across the titanium feedstock sector. It is the only study of its kind undertaken annually. The number of operations included varies year-on-year, and in 2019 there were 36 operations reviewed.
The study provides:

  • A detailed explanation of TZMI’s methodology employed to maintain consistent comparisons of operating costs across the entire titanium feedstock industry.
  • Informed discussion about the parameters used for comparing relative competitiveness in the industry.
  • Updated cost data for the mineral sands industry from information and research garnered during the previous year.
  • Commentary on the importance of co-product credits in the current market conditions (pig iron and zircon).
  • Discussion on increasing operating costs, specifically energy and mining costs.
  • An analysis of the effect of exchange rates on producer performance.
  • An updated titanium feedstock industry cost curve – an invaluable tool for evaluating both existing operations and measuring the potential of new projects.

CONTENTS

EXECUTIVE SUMMARY
METHODOLOGY
TITANIUM FEEDSTOCK MARKET FUNDAMENTALS
  • Global TiO2 pigment production
  • Feedstock demand trend
  • Feedstock consumption by end-use
  • Feedstock supply trend
  • Feedstock trades in 2018
    feedstock
COST AND PROFITABILITY CURVES
  • Operations included in 2018 cost study
  • HMC cost of production
  • Mineral separation plant costs
  • Total cash cost of mineral production
  • Summary cash cost of mineral production
  • SR and slag producers costs
  • Ilmenite conversion costs: Slag producers
  • Ilmenite beneficiation: Western vs Chinese
  • Ilmenite conversion costs: SR producers
  • Ilmenite beneficiation: Western vs Indian
  • Transport costs
  • Total cash cost of operation
  • Average cash cost of operation
  • Net cash costs
    Ilmenite
INDUSTRY COST COMPETITIVENESS
  • Cost competitiveness measures
  • Normalised net cash costs
  • Cash margin
  • Industry weighted R/C ratio
  • R/C ratio curve
  • Comparison of R/C ratio curve: 2016 -2018
  • R/C ratio by producer group
  • R/C ratio trend
  • Future industry R/C curve forecast 
  • Long-term weighted average R/C ratio
    HMC
FACTORS AFFECTING RESULTS
  • Factors affecting R/C ratio
  • Feedstock prices in 2018
  • Co-product revenue
  • Labour costs
  • Power prices
  • Exchange rates
  • Increasing ilmenite conversion costs
  • Graphite electrode prices
  • High purity pig iron price increases
    TiO2
KEY PRINCIPLES AND DEFINITIONS
  • Key principles
  • Definitions