The Ilmenite market in the initial stages of July 2024 reflects a patchwork of stability and fluctuation driven by regional economic conditions and industry demands. Mozambique and Malaysia are seeing steady or positive developments in production and demand, while China faces challenges due to economic slowdowns and regulatory impacts. In Mozambique, Ilmenite prices have remained stable at USD 300 per metric ton (MT) for IP-3 Grade, (FOB) Moma, during the first half of July. This stability follows consistent pricing from the previous month.
Kenmare Resources, the operator of the Moma Titanium Minerals Mine in northern Mozambique, has reported a noteworthy increase in production figures. Heavy Mineral Concentrate (HMC) production reached 342,600 tonnes in the second quarter of 2024, marking a 7% increase compared to the same period last year. Ilmenite production saw an 8% rise, reaching 238,600 tonnes. Kenmare Resources highlights robust global demand for its products, particularly Ilmenite, which is essential in pigment production. This demand is largely driven by the growing global pigment industry, which uses Ilmenite to manufacture colors for paints, paper, and plastics. The steady demand and production increases underscore Mozambique’s role as a significant player in the Ilmenite market.
In Malaysia, during the first half of July, Ilmenite prices are reported at USD 280 per MT for IP-3 Grade, FOB Klang, with no significant change from June. The demand for Malaysian Ilmenite remains strong, particularly across Asiatic markets. Countries such as India, Indonesia, and Thailand are notable consumers of Malaysian Ilmenite. In India, the real estate sector is experiencing a surge in activity with increased construction projects, which has in turn boosted the demand for Ilmenite. The construction of new properties and developments has raised the need for titanium dioxide, used extensively in construction materials. Additionally, Indonesia is also driving Ilmenite demand due to significant infrastructure investments. For example, The Indonesian government has allocated an additional 15 trillion rupiah (approximately USD 1.01 billion) to accelerate the development of the new capital city, Nusantara. This substantial investment is expected to further increase the need for Ilmenite in construction applications.
In contrast, the Ilmenite market in China has faced a price decline, with prices falling to USD 420 per MT for IP-3 Grade, Ex-Works (EXW) Qingdao, representing a 2.3% decrease. This decline is attributed to slower-than-expected economic growth in China, affected by a prolonged downturn in the real estate sector and job insecurity. These factors have dampened demand, particularly from the construction industry. Additionally, the European Commission’s recent imposition of an anti-dumping duty on titanium dioxide (TiO2) from China has further complicated the market. This regulation, which includes registration requirements for TiO2 imports, has introduced additional challenges to the global supply-demand balance, influencing both domestic and international market dynamics.