"United Mining and Chemical Company" | News | PJSC UMCC shipments in Q1 2017 grew by nearly 70%
PJSC UMCC shipments in Q1 2017 grew by nearly 70%
11.05.2017UMCC’s subsidiaries VMMP and IMPP sold over 91,000 t of main products for the total of UAH 515.6 mn over January-March 2017. Over the same period last year, the company sold 53,859 t of ilmenite, rutile and zircon concentrates for UAH 480.4 mn. Thus, the sales grew 69% in volume terms and 7% in monetary terms.
Irshansk ilmenite concentrate is the leader of shipments. In Q1 IMPP shipped 68,666 t of ilmenite against 28,255 t in Q1 2016. The 2.4 times growth is due to performance of export contracts after the plant reoriented at global markets. In the first quarter of the year, the plant did not supply its products to the domestic market for the first time in several years, as it was before the plant was transferred into management of UMCC, but instead concentrated on export. As a result, 81% of Irshansk ilmenite was sold to Asian markets, 19% - to Europe.
At the same time, VMMP reported decrease of export supplies of ilmenite concentrate in Q1 2017. In Q1 2016, this indicator was at 10,870 t, while in the same period this year it dropped to 4,718 t. At that, Vilnohirsk plant increased, although insignificantly, sales of rutile and zircon concentrate over the reported period.
“In the first quarter of the year, PJSC UMCC showed positive sales dynamics, both in volume and monetary terms, thanks to the ‘awakening’ demand on the global titanium market after the crisis. We’ve been observing this trend since the end of 2016,” commends PJSC UMCC Acting Chairman of the Board Oleksandr Gladushko.
The demand for ilmenite increased mainly from the processors of this raw material into titanium pigment, which explains growth of shipments by Irshansk subsidiary, he says. In particular, Chinese pigment producers are experiencing shortage of ilmenite concentrate.
At the same time, buyers of titanium raw materials are not in a hurry to raise prices for the ilmenite concentrate they are experiencing a shortage of. “The prices for titanium raw materials are growing gradually and not the way we would want it to grow. That is why the earnings have increased not as significantly as the volumes,” explains Gladushko.
In Q2, PJSC UMCC expects improvement of the situation with production and sales at Vilnohirsk subsidiary – the demand from the companies using ilmenite concentrate for manufacturing metallurgical products is on the rise. VMMP focused on supplying raw materials to this kind of companies.
“This year, we are observing a gradual recovery of the global titanium market from the crisis and expecting positive dynamics of production and sales based on the results of the year,” predicts Gladushko