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05 2017
9th Global Zircon Conference 2017 The “Global Zircon Conference” held by Ruidow is responded po..

Iluka output was higher then prediction

Oct.29 2018      Source:ruidow

Keywords:iluka zircon sand

Group Z/R/SR production of 194 thousand tonnes in Q3 2018 was 14% higher than Q2 - Q3 2018 zircon production of 97 thousand tonnes, was up 25% on June quarter and almost double relative to same period last year. - Rutile production was up slightly in Q3 from Q2, though ~10 thousand tonnes below management’s expectations for the quarter, reflecting ongoing runtime issues at Sierra Rutile. - Synthetic rutile production was in line with Q2, with full year production guidance increased to 210 – 215 thousand tonnes from 205 thousand tonnes reflecting strong run rates.

 

 

 

2017 Q3

2018 Q2

2018 Q3

2017 YTD

2018 YTD

2018 YTD

vs

2017 YTD

Output

kt

kt

kt

kt

kt

%

Zircon sand

49.4

77.3

96.5

253.1

255.4

0.9

Rutile

96.0

38.4

43.7

245.8

126.4

3.4

Synthetic rutile

58.1

53.8

53.7

157.7

163.0

9.7

Total

203.5

169.5

193.9

656.6

544.8

-17.0

 

 

The previously announced 12% increase to the Zircon Reference Price, effective 1 October 2018 to 31 March, has been accepted by Iluka’s customers. Iluka has observed that pricing for zircon has narrowed to a tighter range recently, with some producers increasing prices by a similar quantum to Iluka and several opportunistic suppliers moderating their pricing from levels that were creating volatility and uncertainty in the broader market. Feedback from downstream customers on Iluka’s approach to the market remains positive as the company seeks to provide both sustainability and predictability in pricing.

 

 

Late in the third quarter Iluka started to observe some easing in the tightness of supply, despite what the company understands are ongoing delivery backlogs from some other zircon producers. Iluka does not believe there are any material additional quantities of zircon available for sale or that there has been a material reduction in overall global demand; rather, small changes in some markets have eased the tension on tight supply.

Customers suggest that, while there is a softening in demand for opacifier (milled zircon) into the ceramics sector, it is temporary in nature; and that they expect a slower fourth quarter followed by improved conditions in 2019. Indications are that stocks of zircon and opacifier held downstream are within normal operating limits for customers. All of Iluka’s major accounts have indicated that they plan to take their full allocation in the fourth quarter.

As disclosed with the half year results, Iluka increased its zircon production guidance for 2018, by releasing additional product into the market in the form of zircon in concentrate (ZIC). This action was taken to mitigate potential supply shortfalls. Iluka has the capacity to release more finished goods and ZIC into the market should competitors’ supply disruptions continue through Q4 and into 2019. The company continues to monitor the market for evidence of substitution and thrifting and while some thrifting is apparent, there is no evidence of attempts to substitute zircon out from formulations.

 

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