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09 2020
Global Zircon Conference 2020 Global Zircon Conference 2020 coming!

Production and sales of Base Resources decreased slightly in fiscal year 2020

Feb.02 2021      Source:ruidow

Keywords:titanium dioxide

According to the latest annual report of base resources, the company's mining of heavy ore sand in 2020 is slightly lower than that of the whole year of 2019, and the grade of heavy ore sand is 0,2% higher than that of 2019, which means that the output and sales volume of the company's mineral products in 2020 are slightly lower than that of last year.

Mar 2020 Quarter

June 2020 Quarter

Sept 2020 Quarter

Dec 2020 Quarter

FY2019

FY2020

FY2021

Guidance

HMC produced (tonnes)

148,699

153,754

103,730

142,309

589,577

total

548,492

total

HM %

3.86

3.87

3.16

3.68

3.49

3.64

Production (tonnes)

Ilmenite

105,035

84,843

65,863

78,500

341,182

334,241

270,000 - 300,000

Rutile

23,683

19,035

15,513

18,171

78,961

76,402

70,000 - 80,000

Zircon

9,163

7,590

6,000

6,677

28,909

29,430

23,000 - 27,000

Sales (tonnes)

Ilmenite

87,819

102,364

75,502

53,798

347,612

319,483

Rutile

25,280

27,268

11,651

12,017

73,578

76,216

Zircon

7,377

9,086

7,336

6,399

29,031

30,198


Global pigment producers have indicated that the strong recovery in demand seen in the prior quarter continued through the December quarter and it is now estimated that global pigment production and titanium feedstock demand in 2020 exceeded that of 2019.

In response to the improved demand, western pigment producers have been ramping up production rates from late in the prior quarter and through this quarter. Chinese pigment producers have continued to operate at high output rates as the domestic market improves and high volumes of pigment exports are sustained. Globally, pigment prices have been trending up through the quarter.

Demand for ilmenite as a feedstock for Chinese pigment producers exceeded supply through the quarter resulting in further price gains for ilmenite. Ongoing strong demand and constrained supply will maintain a tight ilmenite market through the March quarter and is likely to result in further price increases.

Rutile prices softened in the quarter due to a build-up of high-grade feedstock inventory during the early part of 2020 when western pigment producers were operating at low rates. The ramp up of western pigment production through the quarter has released pressure on feedstock inventory levels. Pigment customers are indicating that pigment demand has recovered faster than expected. This is expected to increase rutile demand and, as a minimum, stabilise rutile prices in the coming quarter and improves the outlook past this. In addition, an uplift in demand for rutile in the welding sectors throughout Asia, and the Chinese titanium metal sector, is expected to further support stabilisation of rutile market conditions and prices in early 2021.

Demand for zircon improved through the quarter mainly due to an increase in zircon consumption in the European ceramics sector as economies emerged from lockdowns. Major tile producers and zircon millers in Europe, who had been holding minimal raw material inventories during lockdown, have sought to expedite new orders to enable a ramp up of production to capacity levels. The Chinese zircon market is gradually improving and there is optimism building for 2021. The management of zircon supply by some major producers to suit market conditions has been maintained and is enabling the zircon market to stabilise and recover. Sales contracts are in place for all Kwale Operations zircon production in the March quarter with prices flat compared to the December quarter.



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