Hi Seals Thanks for your help Hope this is the start of...

Hi Seals
Thanks for your help Hope this is the start of something new and positive for the ex Gunson
I found the following Article on Zircon etc


Zircon markets signal steady recovery by end of 2014
Jessica Roberts– Roskill Senior Analyst
Zircon markets signal steady recovery by end of 2014
Zircon consumption is at its lowest point for a decade, having dropped by over 30% to
1Mt since its 2011 peak, but there are signs that demand in 2014 is set to stabilise. The
use of zircon in some key markets, including traditional ceramics and foundries, has for
several years been affected by substitution from competing minerals or its outright
elimination from product formulations.
This fall in consumption occurred in spite of continued growth in the traditional ceramics
market, the largest application for zircon, as consumers sought to reduce their reliance
on the opacifier mineral owing to high raw material costs.
Zircon prices were volatile between 2010 and 2012, more than doubling in the space of
18 months to reach $2,500/t in mid-2012. This was the result of supply shortages, as
end markets recovered from the financial downturn more rapidly than anticipated. In
many cases, zircon consumers were unable to pass on increased costs, particularly in
the traditional ceramics market.
Substitution trends stabilise
Lower consumption of zircon has been achieved by manufacturers through substitution,
changing fashions and manufacturing innovations. In ceramics, zircon substitution has
been particularly pronounced in the traditional Western European hubs of Spain and
Italy. Ceramic producers have achieved similar quality levels by partially or completely
substituting zircon with aluminosilicate minerals such as calcined alumina and feldspar in
some applications.
While some substitution has also been seen in Asian ceramics, mainly those produced
for the export market, producers in the much larger domestic markets in the region have
sacrificed quality in favour of lower production costs. In many cases consumers have
entirely removed zircon from their formulations.
As a result of lower zircon demand, supply significantly exceeded consumption which led
to the creation of large stockpiles. During this period, prices stabilised and then fell
sharply. Australian zircon export prices fell to an average of $1,650/t in late 2012, and
continued to fall throughout 2013 and into 2014. By mid-2014, they had reached an
average of $1,000/t.
Roskill Approachable.Independent. Expert
Zirconium - Zircon markets signal steady recovery by end of 2014 Page |2
54Russell Road, London SW19 1QL, UK
Tel: +44 20 84170087 Fax: +44 20 84171308
Email: [email protected]
Online: www.roskill.com
Zircon use in chemicals and refractories also showed a decline between 2011 and 2013,
but this was linked to lower output of these end-products rather than raw material
substitution.
Downstream zirconium product demand picks up
Zircon is used as the feedstock material in numerous downstream zirconium products,
principally in the form of chemicals, zirconium oxide (zirconia) and metal. Zirconium
products are used in myriad end markets, but typically in low-volume and high-value
goods.
World production of zirconium chemicals is dominated by China, where over 88% of
capacity is located. Chinese companies have invested substantially in chemical facilities
over the last decade, particularly for zirconium oxychloride which is the feedstock
material for downstream zirconium chemicals.
Global zirconium chemical capacity is estimated to be 523,000tpy in 2014, with
zirconium oxychloride (ZOC) comprising 80% of this. The Chinese ZOC market is
currently in a state of acute overcapacity with few profits available to suppliers.
The largest market for zirconium oxychloride is now in the production of high-purity
chemical zirconia, which itself is being influenced by the ceramic pigments market. The
introduction of digital inkjet printing has revolutionised the decoration of ceramic tiles and
has spurred demand for zirconia-based pigments.
Ceramic pigments are also a major consumer of fused zirconia, although the dominant
application for this material continues to be in refractory materials particularly for crude
steel and glass manufacture.
Advanced ceramics & environmental growth
In the last three years the chemical zirconia market has seen healthy growth in the very
high-value sectors of advanced ceramics and environmental markets, particularly
bioceramic uses and oxygen sensors.
Environmental markets have also spurred demand for zirconium basic carbonate and its
derivative products, namely in the catalyst sector. Automotive catalyst demand is being
driven by environmental concerns over the release of pollutants from automotive
exhaust gases, which is prevented with the use of a catalytic converter. Over 95% of all
new vehicles sold globally each year are now fitted with catalytic converters.
The main influence on the zirconium metal market is the nuclear industry, accounting for
around 60% of zirconium sponge capacity, where zirconium alloys are used in the
manufacture of fuel tubes, cladding and other components. World demand and
investments in nuclear power are recovering from the March 2011 Fukushima accident
in Japan and its subsequent impact on global confidence in nuclear power safety.
Zirconium - Zircon markets signal steady recovery by end of 2014 Page |3
54 Russell Road, London SW19 1QL, UK
Tel: +44 20 84170087 Fax: +44 20 84171308
Email: [email protected]
Online: www.roskill.com
Price traction expected from 2016
World zircon demand is forecast to grow by 3.7%py between 2014 and 2019. The
chemicals sector is expected to see the highest growth rate at 4.1%py, but will be
closely followed by ceramics. Lower growth rates are projected for demand into the
foundries and refractories sectors.
Zircon prices are anticipated to be buoyed by higher demand and are forecast to
stabilise in the latter part of 2014. While prices are expected to firm slightly in 2015,
sizeable stockpiles currently overhang the market. These are likely to be drawn down
until late 2015, after which higher sales and demand could encourage stronger prices.
--
Zirconium Concentrate: Global Industry Markets and Outlook report, profiles over
150 current and potential producers and processors of zircon sand and zirconium
silicate. The Zirconium Oxide, Chemicals and Metal: Global Industry Markets and
Outlook report provides an in-depth look at the downstream zirconium supply chain and
markets. It profiles more than 150 current and potential producers of zirconia, zirconium
chemicals, and zirconium metals and alloys. These reports build on Roskill’s 13 prior
editions of the Zirconium report, focusing in even greater depth on international trade
flows, demand, end-use applications and prices; providing a comprehensive review of
the upstream and downstream zirconium market and its prospects.
These latest editions are available to order by telephone: +44 20 8417 0087, Fax +44 20
8417 1308 Email: christine@