Kenmare Sees Ilmenite Price Gaining as Pigment Market ReboundsThomas Biesheuvel
Kenmare Resources Plc said it expects its customers to pay more for the ilmenite it mines when it negotiates prices for the second half of the year.
“We’re at the bottom at the moment,” Michael Carvill, managing director of the Dublin-based company, said by phone today. “The circumstances are such that prices should go up.”
Prices for ilmenite, used as a pigment in paint, have collapsed as customers built up inventories, forcing some producers to shutter mines. Prices of $250 and $300 a metric ton needed to sustain the industry won’t be achieved this year, Carvill said. Kenmare is selling ilmenite for $185 to $200 a ton in the first half, he said.
Kenmare earlier reported first-quarter ilmenite production rose 53 percent to 210,800 tons. The shares climbed as much as 12 percent to 13.75 pence and traded at 13.25 pence as of 10:12 a.m. in London.