Industrial Minerals


Price Briefing: Q3 season continues price war, with increases across the board

September 2011


Keywords: zircon, graphite, fluorspar, lithium, brown fused alumina

  • Zircon sand
  • Synthetic graphite
  • Fluorspar
  • Lithium
  • Brown fused alumina

Zircon

Third quarter price rises are taking effect across the board as producers find little resistance to implemented price hikes. Zircon prices surged into the third quarter as consumers accepted significant price hikes from suppliers.

“All users are bemoaning the quarterly price increases, especially the refractory producers, who claim they can’t recoup all of this from the steel producers. They, however, have no substitute for zirconia in most products at present,” a source told IM.

According to those in the market, prices this year have been driven significantly by growth in Chinese zirconium chemical production, which has exacerbated the tight supply situation.

There has been a shortage in zirconium oxychloride (ZOC) in China, and prices for the chemical have more than tripled in the past six months.

“Opportunistic producers started price gouging due to the shortage and made...