SUPPLY SECURITY
The zircon market, which has evolved steadily over the last couple of decades, is at present the most buoyant it has ever been, mainly driven by China but also from elsewhere. World supply is lead by Australia and South Africa, which account for approximately 70% of the 1.3m. tpa global zircon output in 2010.
In 2010, global zircon demand made a significant turnaround from the 10-year low it experienced in 2009 as a result of the global financial crisis. But supply remains a real source of concern and is forecast to go further into deficit in the coming years, even taking into account likely new sources from projects that are yet to receive formal approval.
“The biggest impact on the market has been continued strong demand from China. With China’s strong growth in demand approaching 20%, it was a matter of when, not if, demand would exceed supply,”...