Monthly Zirconium Market Report Nov 2018
2018-12-07 18:41:00 【Print】
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1. Market Highlights
Prices for Chinese zircon sand and zirconium silicate declined slowly in November. In particular, underpinned by high prices of raw material zircon concentrate, prices for high grade zircon sand 65%min generally kept stable before mid-November, but as the demand for the material from downstream refractory and casting companies weakened obviously as a result of the production restriction policy, some producers began to lower their prices after mid-November in order to boost sales, stimulating mainstream prices for high grade zircon sand 65%min to be RMB10,550-10,750/t (USD1,534-1,563/t) Ex-VAT EXW in late November, a decrease of RMB50/t (USD7.27/t) from late October. As ceramics companies (end users) halted production in advance, zirconium silicate producers started to lower their outputs in early November in order to reduce stocks and then lowered their prices so as to recoup funds at the year-end; as a result, mainstream prices for zirconium silicate 64.5%min were RMB13,600-14,100/t (USD1,978-2,051/t) EXW in late November, down by RMB100/t (USD14.54/t) from late October. As for zirconium oxychloride, all major domestic producers sharply reduced their outputs by over 30% during November and suffered higher production costs influenced by the policy related to "coal-to-gas". Therefore, mainstream prices for zirconium oxychloride 36%min stood at RMB16,100-16,600/t (USD2,342-2,414/t) EXW in late November, up by RMB100/t (USD14.54/t) from early November. In addition, prices for metallurgical grade zirconium sponge 99.4%min went up by RMB5/kg (USD0.73/kg) from late October to RMB235-245/kg (USD34.18-35.63/kg) EXW in late November because both major domestic producers, who obviously lowered their outputs affected by strict production restriction policy and the supply shortage of raw materials, and traders held limited stocks while consumers in Shaanxi who successively resumed production raised the demand for zirconium sponge.
After major Australian zircon sand suppliers raised their Q4 prices, CIF-China prices of Australian zircon sand 66%min stood at USD1,580-1,660/t in November, stable MOM. Chinese buyers' purchasing prices were still USD1,610-1,640/t CIF China. In particular, prices of Tronox's zircon sand 66%min were USD1,620-1,640/t; meanwhile, prices of Indonesian Central Kalimantan zircon sand 66%min went down by USD25/t MOM to USD1,485-1,515/t CIF China as consumers were reluctant to accept prices of higher than USD1,500/t due to much lower prices for zirconium silicate and high capital costs although producers tried to keep their prices firm.
Prices for Chinese zircon sand and zirconium silicate declined slowly in November. In particular, underpinned by high prices of raw material zircon concentrate, prices for high grade zircon sand 65%min generally kept stable before mid-November, but as the demand for the material from downstream refractory and casting companies weakened obviously as a result of the production restriction policy, some producers began to lower their prices after mid-November in order to boost sales, stimulating mainstream prices for high grade zircon sand 65%min to be RMB10,550-10,750/t (USD1,534-1,563/t) Ex-VAT EXW in late November, a decrease of RMB50/t (USD7.27/t) from late October. As ceramics companies (end users) halted production in advance, zirconium silicate producers started to lower their outputs in early November in order to reduce stocks and then lowered their prices so as to recoup funds at the year-end; as a result, mainstream prices for zirconium silicate 64.5%min were RMB13,600-14,100/t (USD1,978-2,051/t) EXW in late November, down by RMB100/t (USD14.54/t) from late October. As for zirconium oxychloride, all major domestic producers sharply reduced their outputs by over 30% during November and suffered higher production costs influenced by the policy related to "coal-to-gas". Therefore, mainstream prices for zirconium oxychloride 36%min stood at RMB16,100-16,600/t (USD2,342-2,414/t) EXW in late November, up by RMB100/t (USD14.54/t) from early November. In addition, prices for metallurgical grade zirconium sponge 99.4%min went up by RMB5/kg (USD0.73/kg) from late October to RMB235-245/kg (USD34.18-35.63/kg) EXW in late November because both major domestic producers, who obviously lowered their outputs affected by strict production restriction policy and the supply shortage of raw materials, and traders held limited stocks while consumers in Shaanxi who successively resumed production raised the demand for zirconium sponge.
After major Australian zircon sand suppliers raised their Q4 prices, CIF-China prices of Australian zircon sand 66%min stood at USD1,580-1,660/t in November, stable MOM. Chinese buyers' purchasing prices were still USD1,610-1,640/t CIF China. In particular, prices of Tronox's zircon sand 66%min were USD1,620-1,640/t; meanwhile, prices of Indonesian Central Kalimantan zircon sand 66%min went down by USD25/t MOM to USD1,485-1,515/t CIF China as consumers were reluctant to accept prices of higher than USD1,500/t due to much lower prices for zirconium silicate and high capital costs although producers tried to keep their prices firm.
