Zircon sand supply tightening
Iluka Resources Ltd has reported 2017 full year output of zircon sand as 380 thousand tonnes, an increase of 12% of 2016.
It is their view that the supply/demand imbalance has grown over the last year due to a declining valuable heavy mineral grade and hence product availability. At the same time there has been strong growth in demand from most markets in Europe, India, the Amercias and East Asia. China has been the only exception with reduced demand on the back of environmental controls and plant closures. It is expected zircon supply will remain tight during the rest of 2018 and hence an upward pressure on pricing.
Iluka's Zircon Reference Price was increased to US$ 1,230/mt at the start of Q4 2017 and will be unchanged until the start of Q2 2018.
Zircon sand is the starting raw material for the majority of zirconium chemicals and zirconium oxides. The price and availability of zircon sand therefore has a direct effect on zirconium product pricing.
Date : 29-01-2018