Industrial Minerals


Year in Review 2011: Zircon

23 December 2011

by Mark Watts

Prices soared as chronic underinvestment in new capacity finally tipped the balance

Keywords: zircon, 2011, Moma, Kenmare, Matilda Zircon, China, zircon sand, Alister MacDonald

The zircon market garnered new attention in 2011 as the widely-forecast shortages in global supply had a dramatic impact on prices for the mineral sand.

As demand for zircon continued to rise, especially in China, suppliers worldwide have been unable to keep up due to chronic lack of investment in zircon projects, which are largely tied to titanium mineral production.

This became most apparent in the third quarter, when IM reported that buyers had accepted price increases of around 40% following a hike announced by market leader Iluka Resources Ltd. This was followed by more moderate increases in the fourth quarter.

Zircon sand (standard grade, FOB Australia) is now being traded at...