Titanium Dioxide Feedstocks
Q3 2023 sales of synthetic rutile were 27kt, with year to date sales of 144kt in line with the ‘take or pay’ contracts in place for Iluka’s
SR2 production and some spot sales.
In the titanium dioxide pigment market, production at idled chloride plants in Europe has restarted, however rates remain below
seasonal norms as chloride pigment producers seek to match production with demand.
Downstream pigment prices (in the US and Europe) continue to remain stable despite the lower demand environment as producers
match production with demand. In China, three consecutive pigment price increases have been announced since August as inflation
pushes producers to seek higher prices to offset rising input costs.
Infrastructure spending by emerging economies, including India, is supporting continued demand growth for rutile into the welding
market. The titanium sponge market is also experiencing strong demand, reflecting increased activity in the aerospace industry and
restricted supply from Russia.
As previously announced, Iluka will pause production at its SR1 kiln from Q4 2023, coinciding with the planned MMO at SR2. This pause
will assist Iluka in matching synthetic rutile production with demand. Synthetic rutile inventory built during the year to date will enable
Iluka to service sales contracts in Q4 2023, with the company having ~200ktpa on average of synthetic rutile production under ‘take or
pay’ arrangements to 2026. Both kilns will restart in late January 2024.
The Q3 2023 rutile price was US$1,908 per tonne (noting that Iluka’s sales of rutile are almost exclusively to the welding market) and
synthetic rutile US$1,262 per tonne
https://www.iluka.com/media/olrowzmk/iluka-resources-september-quarterly-review-2023.pdf