Australian heavy mineral producer Iluka Resources has withdrawn its synthetic rutile sales guidance because of uncertainty around a supply agreement with UK pigment producer Venator Materials.
Iluka was meant to sell 36,000t of synthetic rutile to Venator by the end of 2025, Iluka said on 17 October. But Venator sold and idled its 150,000 t/yr Greatham titanium dioxide plant in the UK on 16 October. Pigment makers use synthetic rutile as a feedstock to produce materials including titanium dioxide.
Iluka has not received any notice from Venator about the synthetic rutile deal since, the company said. It is also talking to customers about adjustments to other take-or-pay synthetic rutile sales deals because of weakness in the global pigment market.
The company's synthetic rutile sales fell by 60pc on the year in July-September, from 25,000t to 10,000t, because of customer shipping schedules, it said in a quarterly report released on 17 October.
Iluka's synthetic rutile sales decline and guidance withdrawal comes as it prepares to shutter its 225,000 t/yr Synthetic Rutile Kiln 2 (SR2) for up to six months on 1 December, over pigment market weakness.
The company produced 58,000t of synthetic rutile in July-September, down by 1.1pc on the year. It will use stockpiled material to fulfill customer orders while the SR2 is closed.
Meanwhile, Iluka's sales of natural rutile fell by 13pc on the year to 10,600t in July-September, tracking that of its synthetic rutile assets. But its output of natural rutile rose by 30pc on the year to 13,500t over July-September.
Zircon
The company processed 39,500t of zircon sand and produced 12,800t of zircon concentrate in July-September, down by 7pc and 52pc on the year, respectively.
Its sales of the material also fell over the quarter. It sold 30,600t of zircon sand and 13,200t of zircon concentrate in July-September, down by 13pc and 45pc on the year, respectively.
Iluka is not the only zircon producer facing challenges. Zircon sand suppliers outside China cut prices in July-September because of weak demand from Chinese downstream processors, Chinese importers told Argus in September.
Iluka's average realised zircon sand price stood at $1,615/t in July-September, down from $1,891/t a year earlier.
| Iluka Resources Quarterly | ||||||
| Jul-Sep '25 | Jul-Sep '24 | y-o-y ± % | Jan-Sep '25 | Jan-Sep '24 | y-o-y ± % | |
| Production (kt) | ||||||
| Zircon sand | 40 | 43 | -7.1 | 111 | 113 | -1.7 |
| Zircon concentrate | 13 | 27 | -52 | 73 | 54 | 34 |
| Rutile | 14 | 10 | 30 | 49 | 46 | 7 |
| Synthetic rutile | 58 | 59 | -1.2 | 171 | 153 | 11.5 |
| Sales (kt) | ||||||
| Zircon sand | 31 | 35 | -13 | 264 | 236 | 12 |
| Zircon concentrate | 13 | 24 | -45 | 42 | 42 | 0.9 |
| Rutile | 11 | 12 | -13 | 241 | 149 | 62 |
| Synthetic rutile | 10 | 59 | -83 | 643 | 565 | 14 |
| Average Realised Price ($/t) | ||||||
| Zircon sand | 1,615 | 1,891 | -15 | 1,676 | 1,892 | -11 |
| Zircon concentrate | 1,464 | 2,674 | -45 | 1,485 | 1,747 | -15 |
| Rutile | 1,375 | 1,589 | -13 | 1,471 | 1,700 | -13 |
| Synthetic rutile | 1,106 | 1,178 | -6.1 | 1,138 | 1,220 | -6.7 |
| Source: Iluka Resources | ||||||
