ilmenite9 Jan 2020 08:10
Kenmare RNS today throws up some interesting information regards ilmenite and well worth a read of the whole RNS but for me the stand out point was 'strong demand growth for ilmenite to be upgraded into high grade chloride feedstocks'
From RNS:
Kenmare achieved higher average prices for titanium feedstocks (ilmenite and rutile) during FY 2019 than in FY 2018, but lower average prices for zircon.
After a subdued first quarter, the ilmenite market improved continuously for the rest of the year. Despite lower global pigment production in FY 2019, strong ilmenite market conditions were supported by continuing supply constraints. These include government restrictions in India and Vietnam and reducing production from major producing countries, such as Australia and Kenya, due to declining orebodies. Conversely, domestic Chinese ilmenite production increased by approximately 10% in 2019, partially offsetting decreasing production elsewhere.
Ilmenite imports to China reduced by approximately 24% (550,000 tonnes) for the 12 months to the end of November 2019, compared to the same period in 2018, driven largely by a shortage of available supply. Kenmare experienced strong demand growth for ilmenite to be upgraded into high grade chloride feedstocks, for which Chinese domestic ilmenite is also unsuitable. Kenmare believes the high-grade titanium feedstocks market is likely to continue to grow in coming years, both in China and the rest of the world, and the Company is well-positioned to benefit from this trend.
Kenmare achieved increased ilmenite prices in FY 2019, with H2 received prices up more than 10% on H1 2019, and prices have continued to increase in 2020.
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