zircon price market research, page-104

From the Base Resources quarterly:

Despite uncertainties in China relating to power cuts, environmental controls and COVID management policies, the TiO2 pigment
industry and the main zircon-user sectors (including ceramics) in China remained strong through the December quarter. End user
sectors for the Company’s products in all other markets continued to strengthen through the quarter. Further price increases for TiO2
pigment have been announced globally for early 2022.
Demand for imported ilmenite as a feedstock for Chinese TiO2 pigment producers, particularly from the Company’s customers,
remained strong in the quarter, enabling further ilmenite price gains. Increased ilmenite supply from some African sources, Vietnamese
exports and Chinese domestic production through 2021 continued to lag behind demand resulting in an expectation that ilmenite prices
will maintain December levels through the March quarter. Bulk freight costs to China eased through the quarter but remain volatile
and are expected to affect ilmenite price gains for the foreseeable future.
Demand for high grade TiO2 feedstocks (which includes rutile) again increased significantly through the quarter as western TiO2 pigment
producerssought to maximise output volumes and the welding consumable and titanium metal sectors strengthened further. The tight
market for high grade feedstocks has been exacerbated by uncertainties over supply from major high grade feedstock producers. Rutile
prices increased through the quarter and substantial price increases have been secured for the March quarter. A major rutile shipment
scheduled for December 2021 was postponed to January 2022 due to delays with the customer’s chartered vessel, impacting reported
sales for the December quarter.
Zircon demand continues to be strong in all end use sectors and regions, which, when combined with limited supply and minimal
inventories, has resulted in a tightening zircon market and upward price pressure. Zircon prices for the Company’s December quarter
contracts increased by approximately US$600/t from prices in September quarter contracts. Due to ongoing uncertainties in China and
the seasonally weaker winter period, average zircon pricing agreed for the Company’s March quarter contracts have seen only a
marginal increase over December quarter contract prices.