Iluka released quarterly review of zircon to 31 March 2023

2023-04-26

Apr. 20, 2023 - Iluka released quarterly review 31 March 2023 including zircon. As communicated in Iluka’s December 2022 Quarterly Review, the company anticipated cautious buying activity in Q1 2023 and this was observed on the part of some zircon customers. However, total sales of 42kt in Q1 2023 were higher than expected; and customers continue to indicate their full year volume requirements for 2023 will be in line with their purchases in 2022. 

While China’s ceramic market restarted slowly after Chinese New Year on the back of softness in the real estate market, positive signs emerged later in the quarter, with home prices and land sales figures suggesting a recovery in housing demand. Other major market segments – fused zirconia, zirconium chemicals, refractories, and foundries remain relatively stable. Conditions in Q2 2023 are expected to improve as China’s re-opening gains momentum. 

In Europe, ceramic manufacturers had a slow start to the year. Production activity did increase over the quarter on lower energy prices and improving sentiment. 

India continues to outperform in production of tiles and foundry products; and demand from other South East Asian markets remained strong throughout the quarter. 

Iluka announced a zircon sand price increase of US$50 per tonne for Q2 2023. This price increase has been accepted by the market, with Q2 volumes now contracted.