Iluka says demand for zircon in China is powerful – Commodity Commentary

By Rhiannon Hoyle

The mineral sands miner Iluka Sources Ltd. reported a pointy enhance in gross sales of mineral sands within the first half of the 12 months on Thursday in comparison with a 12 months in the past, as demand recovered from 2020 ranges reached by the pandemic. Iluka is the world’s largest producer of zircon, which makes ceramic merchandise opaque. Listed below are a few of his remarks on the markets:

On request of zircon:

“The demand for zircon remained sturdy all through the primary half of 2021. Chinese language tile manufacturing has returned to pre-pandemic ranges, regardless of vital monetary strain attributable to rising uncooked materials prices and related challenges. growing tile costs for actual property builders. Tile manufacturing might have been stronger, however for areas of Guangdong, Guangxi and Yunnan with energy provide restrictions, limiting manufacturing.The second wave of Covid-19 circumstances in India has blocked pictures of ceramic tile producers as they search to start manufacturing at variety of newly constructed factories. Spain, Italy, Brazil and Turkey would function at 90% of their capability. “

About zircon costs:

“The weighted common zircon value reached in 1H 2021 for premium and customary sand was $ 1,321 per [metric] tonne, following a value enhance of $ 70 per tonne efficient April 1. The corporate introduced a minimal value enhance of $ 125 per tonne efficient July 1.

On request titanium dioxide:

“Market demand for titanium dioxide was once more sturdy, with many requests obtained throughout the quarter for added volumes of top quality uncooked supplies. The provision of chlorine in america has been restricted following interruptions to the winter storm season, spring flooding and deliberate everlasting shutdowns of subeconomic capability by some producers. Consequently, pigment producers have regarded for tactics to extend overhead ranges in an effort to decrease chlorine consumption and maximize throughput. The rise in quantity in 2Q has diminished on-hand stock, and spot volumes seem like scarce throughout the business. “

On titanium dioxide costs:

Pigment costs proceed to rise, with one more spherical of will increase introduced for July 1. Chinese language costs have risen in every of the previous eight months and seem like leveling off forward of the summer season break. pigments in China seem like ready to attend till September to reassess their wants and decide the state of demand because the northern hemisphere’s fall approaches. Sierra Rutile, coupled with violence at a serious commodity producer in South Africa, has created extra issues about the way forward for uncooked materials provide forward of the second half of the 12 months and past. pigments search extra volumes earlier than any potential provide disruption The welding market continues to carry out nicely, with demand exceeding the provision of uncooked supplies. luka has introduced a 9% value on this marketplace for 3T and allocates volumes to welder clients. “

Write to Rhiannon Hoyle at [email protected]

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