Iluka continues to take advantage of a fertile mineral sands market, boosting production and sales in the June quarter.
The company produced approximately 80,400 tonnes (t) of zircon, up five per cent from the quarter before, while rutile production was up two per cent and synthetic rutile production increased 11 per cent.
Sales of zircon, rutile and synthetic rutile were up 23 per cent on the three months before (232,600t compared to 188,800t), with Iluka suggesting it had minimal inventory levels at the end of the 2021–22 financial year (FY22).
The average zircon price jumped $US140/t across the quarter, amounting to an average price of $US1910/t in the first half of 2022. This was 25 per cent higher than the first half of 2021.
The average rutile price for the first half of 2022 was up 17 per cent, to $US1506/t.
Iluka said despite several headwinds in China, it was still enjoying strong demand from the country for its products.
“Chinese tile production was impacted by COVID-19 restrictions,” the company said in its quarterly report. “A number of tile producers are cautious about working with real estate developers, impacting demand for ceramics.
“The Chinese Government is responding by implementing measures to stimulate the property sector.”
Iluka said Chinese refractory producers had secured orders for the second half of 2022 while foundry demand continues to be strong.
“Despite several headwinds, the supply of premium zircon in China continues to be tight,” the company said.
Iluka said demand from Europe also remained robust.
“Tile production in Europe remained strong despite rising energy, transportation and raw material costs,” the company said.
“In Spain, frits and glaze producers ran their operations at full capacity during the quarter. Demand for abrasives and refractories is robust, with a backlog of orders until the end of 2022.”
This comes as Iluka transitions the demerger of its Sierra Leone mineral sands assets, which received the independent endorsement of Deloitte Corporate Finance in June.