Iluka's zircon production up 53.9% YoY in H1 2021

2021-07-30

Jul. 30, 2021 - Iluka Resources released its quarterly review report on July 22, 2021. The report shows that with the Narngulu mineral separation plant operating at full capacity, Iluka produced 141,900 tons of zircon in H1 2021, an increase of 53.9% from 92,200 tons in the same period last year. The output of zircon in the first quarter of this year was 70,100 tons, and the output of zircon in the second quarter was 71,800 tons.

Iluka sold 86,500 tons of zircon in the first quarter and 90,800 tons in the second quarter. The sales of zircon totalled 177,300 tons in the first half of this year, an increase of 126.15% from 78,400 tons in the same period last year.

While the production and sales of Iluka's zircon increased, the price also rose. In the beginning of the second quarter, the price of zircon increased by US$70 per ton, and the price increased by US$125 per ton from July 1.

Iluka said that Chinese tile production has returned to pre-pandemic levels, despite significant financial pressure caused by increased raw material costs and challenges associated with increasing tile prices to real estate developers. Tile production may have been stronger but for regions in Guangdong, Guangxi, and Yunnan experiencing power supply restrictions, limiting production.

India's second wave of COVID-19 cases has stalled plans of ceramic tile makers as they look to commence production at a number of newly constructed plants. Tile production lines in Spain, Italy, Brazil, and Turkey are reported to be operating at 90% capacity.

Chinese fused zirconia producers continue to report favourable market conditions, with demand for refractory from domestic glass producers responding to strong growth in the photovoltaic industry. Exports of refractory materials with alumina-zirconiasilica remain subdued. In the United States, fused zirconia producers are running at full capacity.

Production of zirconium chemicals in China has been stable, with exports of zirconium based chemicals to the US and Japan increasing during the quarter.