Market update from BSE29 Apr 2020 12:49
Despite the COVID-19 pandemic, and seasonal factors, demand during the quarter for all products was firm and most customers, across the various products, market segments and regions, have advised that their facilities operated at normal levels with regular orders received from their customers.
Global pigment producers have generally indicated that demand for pigment was strong through the quarter and tight market conditions continued to prevail for sulphate ilmenite and high-grade chloride feedstocks (including rutile) resulting in further price improvement for both ilmenite and rutile. Subsequent to quarter end, some Chinese customers have advised that there is a weakening outlook for pigment exports.
Rutile demand remains strong and ongoing restricted supply is currently maintaining a tight market. The recent government-imposed interruptions to the operation of major chloride **** facilities in South Africa is expected to further restrict the supply of high-grade feedstock in 2020. The Company has firm sales contracts in place for almost all of its forecast rutile production for the remainder of calendar year 2020.
Despite COVID-19 related uncertainty over the outlook for pigment exports, Chinese pigment producers (the Company’s main ilmenite customers) have re-confirmed their demand for ilmenite and their intention to proceed with planned shipments over the coming months. Tight restrictions on ilmenite supply have continued into 2020 and some customers continue to seek significant additional ilmenite volumes and earlier shipments, having expressed concern over the security of feedstock supply. A prolonged interruption to Chinese domestic ilmenite production through February 2020, due to COVID-19 shutdowns, compounded the general global shortage of available ilmenite through the quarter, which has continued into the June quarter. It is understood that ilmenite supply in India has been further impacted as a result of COVID-19 related suspensions on activity throughout the country. This will further exacerbate the global ilmenite shortage.
Sign In
Follow the stocks
