(Alliance News) - Iodine maker Iofina PLC said on Tuesday prices are continuing to rise, while it is also LOOKING to focus on the US in its hemp business expansion.
Iofina said prices of iodine rose 20% over 2019 and have continued to rise so far this year. The spot price, it said, is now in the mid USD30s per kilogramme due to continued demand but tighter supply.
Iofina thinks prices will continue to rise through 2020, and said the coronavirus outbreak has not yet had any impact on the market.
"Iodine markets have remained strong, after a solid 2019, and the directors are confident prices will continue to favour the group as it progresses through 2020," said Chief Executive Tom Becker.
Elsewhere, London-based Iofina is currently setting up IofinaEX, a business which will isolate specialty chemicals from hemp.
The company has now decided the best strategy will be to focus on the US CBD market, which is "highly" regulated and well-understood by Iofina, it said.
"This will also allow Iofina to continue the strong progress being made within its core iodine and specialty chemical businesses in the US," the firm said.
"IofinaEX continues to develop its strategy in the CBD/hemp space and will update the market as the business plan evolves in this dynamic market. Fully developing and communicating this business plan has taken longer than anticipated as the CBD/hemp global market is changing rapidly. Furthermore, despite now focusing on US opportunities, IofinaEX will still continue to evaluate prospects outside of the US as they present themselves," it continued.
Iofina also said the construction of a new iodine plant in Oklahoma is on budget and on time and is likely to begin producing in April. It already has four iodine plants in operation.
Iofina shares were 5.3% lower on Tuesday afternoon in London at 19.65 pence each.
By George Collard; georgecollard@alliancenews.com
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Iofina (IOF)