Abstract
What this report gives you:
- Independent, in-depth research and analysis
- Essential market intelligence for successful business planning
- Detailed survey of production and processing in 53 countries, including
emerging producers such as Indonesia and The Gambia
- Up-to-date profiles of the activities of 53 zircon producing and
processing companies, and potential projects including Iluka Resources, Exxaro
Resources and Richards Bay Minerals
- Details of zircon millers and zirconium chemicals producers in China
- Forecasts for end-use consumption and world supply and demand
Continued oversupply forecast for zircon market
Between 2002 and 2005, zircon demand exceeded supply. The shortage of zircon
in the market would have continued into 2006 had it not been for the emergence
of Indonesia as a major new supplier of zircon, resulting in the market
entering a period of oversupply in 2006. However, despite increased production
from Indonesia, zircon prices reached almost US$750/t in 2006, almost double
those seen in 2002. World consumption of zircon was about 1.25Mt in 2006. With
a share of 47%, Asia (including China and Japan) now accounts for just under
half of total consumption, mainly reflecting the growth in production of
ceramics, but also in refractories and chemicals production, in China. Overall
growth in demand is likely to continue at around 3.8%py to reach just over
1.5Mt by 2011. Several new zircon-producing mineral sands projects have come
on line during the first half of 2007 and several more are anticipated for
2008 and 2009, encouraged by the recent shortage of, and high prices for,
zircon. Despite overall growth in production of only around 4.0%py to 2011,
the impact of these new zircon-producing projects is that the oversupply
observed during 2006 will continue and could reach more than 400kt in 2009.
Prices are therefore forecast to decline to around US$450/t by 2011.
Report Highlights
The use of zircon in the manufacture of synthetic zirconia and zirconium
chemicals has shown the fastest growth of all segments, 7%py, and now amounts
to around 150ktpy. The main stimulus in this market has been the increased
demand for zirconium products in coatings and catalysts and the production of
synthetic zirconia to replace diminished supplies of baddeleyite.
The last three decades have seen a major shift in the global distribution of
zircon production. In the 1970s Australia accounted for at least 50% of total
output, while South Africa was then only a very minor producer. The
development of the Richards Bay beach sands operation in the late 1970s made
South Africa the second-largest producer of zircon worldwide. That position
was reinforced with the start-up of the Namakwa Sands mine in 1995, and by the
commencement of operations by Ticor in 2001. Today, Australia and South Africa
account for 66% of total supply, with the USA and Indonesia providing much of
the rest.
Concentration of zircon production continues at a corporate level. In 2006 the
ten largest producers had a combined output of just over 1.1Mt, about 80% of
the world total. Production is dominated by four companies: Iluka Resources,
with operations in Australia and the USA; Rio Tinto and BHPBilliton, which
jointly own Richards Bay Minerals in South Africa; and Exxaro Resources, which
owns Namakwa Sands in South Africa and ultimately controls the Ticor
operations in both South Africa and Australia. Those three corporate groups
effectively control about three quarters of the world' s zircon supply.
Although some of the new projects around the world are aimed principally at
compensating for falling output from existing operations, others represent
entirely new supply, such as Matilda Minerals' Tiwi Islands project in
Australia, Kenmare' s Moma project in Mozambique, Carnegie' s project in The
Gambia and Sierra Rutile' s Gbangbama project. Australian Zircon' s Mindarie
project is also fast approaching commercial production. Although such projects
are unlikely to reach their full capacity during 2007, in total they represent
around 250kt of new zircon supply. This additional supply, combined with
production from Indonesia and other projects in various stages of development,
is all contributing to a forecast sustained period of oversupply in the zircon
market.
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