In 2022 Group DF titanium business enterprises mined 1,798 million m3 of ilmenite ore (-36.8%) and produced 103.6 thousand tons ilmenite concentrate (- 27.0%).
Despite the drop in production volumes the Group titanium business enterprises almost doubled taxes to budgets at all levels for the year – paid taxes and fees increased by 49.3% and amounted to UAH 185.4 million.
[1]“The production results of titanium business were extremely negatively affected by the war and its consequences – the global recession in many industries and corresponding drop in global demand for paints, varnishes, plastic products, furniture, etc. The concentrate which is produced at our GTC is the basic raw material for production of titanium dioxide. Titanium dioxide, in its turn, is a pigment and a component for production of paint materials, paper, and plastics. Decrease in pigment consumption in the world is associated with the decline in the construction industry in particular. The global recession and the drop in demand led to a significant drop of world prices for titanium products,” commented Oleg Arestarkhov , head of Group DF corporate communications department. ” A significant decrease in production volumes occurred due to the stoppage or significant decrease in production at the world’s largest producers of pigment titanium dioxide – such as Venator, Kronos, Precheza, Chemours, Tronox. They have reduced the capacity load in accordance with the reduced demand. It is very logical that the mining industry, which supplies raw materials for production of pigments, has ” begged ” all over the world. Ukraine was not an exception.”
Demand for titanium products in the world and prices for titanium concentrate and titanium dioxide will recover together with recovery of economies of leading countries. The production results of Group DF titanium business in 2023 will directly depend on two interrelated factors – the time of end of war in Ukraine and the time of exit of global economy from recession.
“Once the European economy begins to grow this will mean an increase in demand for titanium dioxide and concentrate. We already experience recovery in global titanium markets. There are certain indicators of Europe’s exit from crisis. This gives us the basis for increasing of production volumes. We look with some optimism into years 2023 and 2024. There is a colossal market potential and a chance to change the role of Ukraine in it. With the accession to the EU Ukraine will certainly claim the status of a new European titanium hub ,” Arestarkhov emphasizes.