Iluka Resources (ASX:ILU) managing director David Robb has painted an improved picture of the zircon market, with a higher level of customer inquiry and a pick-up in orders in all markets, except Europe.
Speaking at the annual general meeting, Robb said indications are that zircon prices may have stabilised, which if sustained, would underpin volume recovery and represents a pre-condition for potential price increases.
Its key zircon markets in China and the US, and even now in Europe, albeit from a very low base, have seen sales exceed last year’s levels.
Robb said sales in China are at a similar level to full year 2012 China sales.
Forecasting demand throughout 2013 and into 2014 remains challenging, due to factors such as the volatility of global and regional economic indicators and subsequent performance trajectories.
Iluka will provide sales volumes in July.
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