Iluka Resources (ASX:ILU) has announced that ongoing trade policy uncertainty continues to impact global economic activity and its end markets. As a result, the company finds it challenging to provide quarterly guidance on zircon prices or sales volumes. Iluka Resources is a global mineral sands company involved in exploration, project development, and the production of zircon, rutile, and synthetic rutile. It also has a rare earths refinery under construction at Eneabba, Western Australia.
The company stated that tariffs, responses to tariffs, and geopolitical conflicts are undermining forecast reliability. The evolving global trade patterns create downstream impacts on economies, with potential outcomes as supply and demand are reshaped. The US government recently extended tariff implementation deadlines from July 9 to August 1, while also imposing new reciprocal tariffs on countries including Japan, Europe, and South Africa. The tariff rate on Australia remains at 10 per cent, with titanium dioxide feedstocks and rare earth oxides remaining exempt, while zircon is subject to tariffs.
Iluka Resources reported that production of zircon, rutile, and synthetic rutile in the second quarter reached 150 kilotonnes. The average weighed zircon sand price was $US1692 per tonne, consistent with the first quarter and previous guidance. The mineral sands explorer achieved its full-year zircon production guidance by June 30, favourably impacting unit cash costs of production in the first half.
Given the uncertainties, Iluka Resources will not provide guidance for zircon sales volumes or pricing for the September quarter. The company anticipates producing an additional 30 kilotonnes of zircon in the second half, accelerating the rundown of the material.
