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[malinkie] 19/9/2014 13:11

Courtesy Ind Mins.

Zircon markets point to steady recovery by end of 2014

Since reaching a peak in 2011, zircon prices have tumbled as substitution in ceramics and foundries uses ate into consumption rates. According to a new market report from Roskill, this trend towards substitution is now thought to be complete.


The zircon market appears to be on track to stabilise in 2014 after several years of falling consumption, following widespread substitution or outright elimination of the mineral in some of the mineral’s key end-use sectors.




Zircon consumers will be drawing on stockpiles until 2015, according to a new Roskill report (source: Foskor Zirconia).
Zircon consumption in 2013 reached its lowest point for a decade at just over 1m tonnes, a fall of 30% compared to its peak in 2011, according to a new report published by Roskill Information Services.


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 highly volatile between 2010 and 2012, more than doubling in the space of 18 months to reach $2,500/tonne in mid-2012.

In many cases, zircon consumers were unable to pass on increased costs, particularly in the traditional ceramics market.

According to Roskill’s “Zirconium Concentrate” report, lower consumption of zircon has been achieved by manufacturers through substitution, changing fashions and the elimination of zircon in product formulations.

Some of these trends began to emerge in 2011, but it was not until 2012 and 2013 that the effects began to negatively impact total zircon use.

This impact was also reflected by zircon prices, which stabilised in mid-2012 and then fell sharply.

Australian zircon export prices fell to an average of $1,650/tonne in late 2012, and continued to fall throughout 2013 and into 2014. By mid-2014, they had reached an average of $1,000/tonne.

Substitution trends

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 region’s much larger domestic markets have sacrificed quality in favour of lower production costs.

In many cases consumers have entirely removed zircon from their formulations.

In the foundry market, zircon substitution has been more prevalent in the sand casting sector, where the substitute of choice is chromite sand. However, in higher quality investment casting, zircon has been more resilient to substitution.

Although the scale of substitution surprised many suppliers in the zircon market, there are signs that the trend has bottomed out and that consumption could begin to stabilise in the latter part of 2014.

It is unlikely in the short term that zircon demand will return to the levels seen in 2011. This is because consumers are now satisfied with products that contain a lower zircon loading.

Instead, zircon demand is expected to be closely pegged to growth rates in the main end user markets of ceramics, foundries, chemicals and refractories.

In the chemicals and refractories sectors, zircon use also showed a decline between 2011 and 2013, but this was linked to lower output of these end-products rather than raw material substitution.

Overall, the new report forecasts zircon demand to grow by 3.7%py between 2014 and 2019. The chemicals sector is expected to see the highest growth rate, but will be closely followed by ceramics. Similar lower growth rates are projected for foundries and refractories.

Zircon prices are expected to be buoyed by higher demand and are forecast to stabilise in the latter part of 2014.

Sizeable stockpiles still overhang the market and Roskill expects these to be drawn down until late 2015. This, combined with higher demand, could encourage higher prices in early 2016.

[malinkie] 19/9/2014 13:05

hxxp://www.indmin.com/Article/3381551/Zircon-markets-point-to-steady-recovery-by-end-of-2014.html?LS=EMS1074833&eventcookielogin=Login&cookielogin=1&;actionname=cookielogin&eid=E017

[paddyloyd] 10/9/2014 11:47

Problem is - it's a 2.8m sell too!!

[malinkie] 10/9/2014 11:22

2.8m buy. Somebody has some confidence.....

[napoleon 14th] 09/9/2014 15:48

Eeeeee bah gum! 12p?

I remember a rights issue atthat price years ago, before we moved house, so before 2009 as the rpofit helped fund the new house.

I'm very sceptical about the chinese economy as their property secene is dangerously similar to spain ten years ago. 2015 might be an annus horibilis.
No property, no paint, so not much illmenite demand.....

If a bid materialises, I'd grab it with both hands....

[albo] 09/9/2014 12:23

Anyone know for how long we keep getting the Form 8.3 notifications?

[gscrawler] 09/9/2014 11:42

Shares up on low volume is this a sign that the seller are gone?
Or is there another offer coming?

[libertine] 31/8/2014 10:22

hxxp://www.businesswire.com/news/home/20140829005273/en/Research-Markets-Global-Zirconium-Market-2014-2018-Iluka#.VALorfdwbSc

hxxp://www.researchandmarkets.com/research/sdgvvg/global_zirconium


Research and Markets: Global Zirconium Market 2014-2018: Iluka Resources, Kenmare Resources, Rio-Tinto & Tronox Dominate the Industry


August 29, 2014 09:00 AM Eastern Daylight Time


DUBLIN--(BUSINESS WIRE)--Research and Markets (hxxp://www.researchandmarkets.com/research/sdgvvg/global_zirconium) has announced the addition of the "Global Zirconium Market 2014-2018" report to their offering.

The Global Zirconium market to grow at a CAGR of 6.9% over the period 2013-2018.

Zirconium is a silver-greyish chemical metal sourced from mineral zircon (ZrSiO4) sand. It is strong, ductile, malleable, and extremely resistant to heat and corrosion. Zirconium is very weak in absorbing neutrons; therefore, it is extremely useful for cladding nuclear fuel. This metal has a wide range of usage in industries such as Ceramics, Chemicals, Refractory, Foundry, and TV Glass.

Technological advancements are major emerging trends in the market. Zirconium is used to build nuclear grade zirconium material and develop a wide variety of components for water-cooled nuclear power projects.

According to the report, the major driver of this market is increased use of zirconium in the Nuclear Power sector. Besides fuel cladding, zirconium alloys are used for making core structurals for water-cooled nuclear power reactors.

Further, the report states that Volatile raw material prices and high export tariffs pose a challenge for the market. High raw material costs leads to a decline in the profit margins of zirconium manufacturers, thus restricting the growth of the market.

This report covers the present scenario and the growth prospects of the Global Zirconium market for the period 2014-2018.

The report provides data on the different segments of the market based on the following criteria: end-user, application, type, and geography.

Key Vendors

- Iluka Resources

- Kenmare Resources

- Rio-Tinto

- Tronox

[malinkie] 27/8/2014 16:12

Done alright on declining prices. Picked up production and second
half should be better. Iluka will come back in with a better offer.
Moma has massive potential, good quality minerals and even at
20-25p a share must be much cheaper than having to develop some new
resources.

[paddyloyd] 27/8/2014 09:50

Any thoughts on the half-year figures?

[donaferentes] 27/8/2014 09:48

I can't be bothered to answer that!

[glyn celyn] 27/8/2014 08:52

Is this thread still live!?

[tiptv1] 19/8/2014 13:20

Zak Mir , the Editor of Spreadbet Magazine says there is Initial Support towards 12p for Kenmare Resources (KMR) - See more at:

[kevspark] 08/8/2014 16:41

All quiet on the western front....whats the consenus on the half year report?

[a0148009] 01/8/2014 08:19

Well today's announcement gone down like a lead balloon 5167 shares traded by 8.18am.

AO

[tiptv1] 15/7/2014 13:58

Zak Mir , Editor of Spreadbet Magazine says to BUY in Kenmare Resources PLC (KMR.L) live on TipTv. See more at:

[malinkie] 11/7/2014 13:33

Iluka will be back. They need to hold on to their position as the leading titania minerals company and with new mines coming onstream, Kenmare would fit very well. It also has a long mine life and is outside South Africa where RTZ the second biggest titania minerals company is based.

[a0148009] 11/7/2014 08:30

Kmr has declined the Iluka approach which was subject to certain conditions, due diligence etc but they have not officially withdrawn their interest.

AO

[jdk14] 10/7/2014 22:18

How do you know that the interest has gone?

[bh61] 10/7/2014 08:43

15p now the Iluka interest has gone, prepare for more falls.

[nonic] 10/7/2014 02:55

Kenmare Resources (LON:KMR) - Q2 2014 Production Report
• Ilemnite production up 11% for Q2 2014 from Q1 2014 at 234,800 tonnes.
• H1 2014 production up 47% in ilmenite to 445,600 tonnes from the same period last year.
• Zircon production up 43% for Q2 2014 from Q1 2014 at 12,600 tonnes and 12% for H1 2014 from same period last year at 21,400 tonnes.
• Rutile up 55% at 1,700 tonnes on quarter on quarter basis and up 47% for H1 2014 from same period last year.
• Shipments up 6% on a quarter on quarter basis to 205,100 tonnes and 36% for H1 2014 to 399,000 tonnes.
• Upgrade to the non-magnetic circuit in teh mineral separation plant was successful with improved production in June.
• Power stability has improved due to seasonal weather conditions and implementation of a load management plan by EdM.
• 7.5 Mw back up diesel plant is in the country and expected to be installed over the next month.
• Inventories in the pigment market have improved but the company think there is still a drag on titanium feedstocks.
• Zircon market conditions are said to be stable.
Conclusion: These are good production numbers with operational issues being addressed and power supply said to be stable. This is helpful to the management team at the time when they have rejected an offer which some investors may have wanted to pursue given the balance sheet and operational issues.
The company see prices for titanium feed stock under pressure. Their comments are less upbeat then Sierra Rutile who also announced Q2s today - this could reflect the different exposures with the latter being more exposed to rutile than ilmenite.

[korkikorki] 09/7/2014 22:30

Hi Lima, I am also very surprised at the lack of comment or even interest in what is going on here........................
I think there is huge potential on the upside...................
I wonder what those 29p warrants could be bought for now, I suspect they will yet provide a return.

[limajane] 09/7/2014 12:12

Well done KMR on the good production - Now, just keep costs to a reasonable level per unit and we will be well positioned for an upturn in prices - maybe we can get close to previous highs (despite the dilution) if we can fend off takeover attempts.

[bh61] 07/7/2014 08:36

JDK14' yep, here we go again, prepare for a bad week.