Market conditions for Iluka’s mineral sands products remain challenging and, in line with previous Iluka commentary, are influenced currently by a combination of factors: lower demand associated with low global economic activity and fragile business confidence levels; inventory de-stocking, mainly of finished ceramics and pigment inventories; and lower levels of zircon usage in tile manufacturing in China, influenced mainly by the adoption of modern manufacturing techniques.
From ILU's update today. Bodes poorly for mineral sands projects ATM. Prices are in a downtrend with weighted average revenue per tonne in AUD falling from $2,255 6m to 30th June, to $1,950 quarter to 30 sep, to $1,660 Oct/Nov.
Really useful stuff for a RIO renegotiation / extension IMO, or otherwise walk away. I doubt the MLM team are idiots and they will be more on top of this than I could possibly be.
MLM Price at posting:
17.7¢ Sentiment: ST Buy Disclosure: Held
