By Rhiannon Hoyle
Australian miner Iluka Resources said it produced less of its core mineral sands products in the third quarter of 2024 year over year, but that sales and revenue were higher.
The company on Tuesday reported production of zircon, rutile and synthetic rutile totaling 138,300 metric tons for the three months through September, down from 167,100 tons a year ago. It produced 142,100 tons in the second quarter.
Sales of those products totaled 96,600 tons for the quarter, compared to 81,500 tons a year ago. But they fell sequentially as Iluka had recorded a bounce in sales in the second quarter of this year, to 136,500 tons.
The company reported total third-quarter mineral sands revenue of 232 million Australian dollars (US$154 million). That was up from A$222 million in the same period of 2023. It was below the A$338 million in revenue the miner recorded the quarter immediately prior.
Zircon is used to make ceramics such as tiles and wash basins, while rutile products are used for paints, plastics and paper.
Iluka is one of the top producers of mineral sands globally and has pulled back on production amid weak demand to avoid having to sell its products too cheaply.
The miner said Chinese demand for ceramics remains subdued, impacting demand for raw materials. Beijing's recent barrage of stimulus measures is not expected to have an immediate impact, it said.
Iluka cautioned that zircon markets usually soften in the fourth quarter, as customers are typically reluctant to hold inventory at the year end. It said it will continue to take a disciplined approach to product marketing.
The third-quarter weighted average zircon sand price was broadly stable versus the quarter prior at US$1,891 a ton. Iluka forecast the fourth-quarter price to decline by roughly US$40-US$50 a ton.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
October 21, 2024 18:07 ET (22:07 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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