Iluka is an established global supplier of zircon and titanium minerals, providing a range of higher grade titanium dioxide feedstocks as well as zircon products for all applications.

The company has over 50 products and seeks to develop new products, as well as offer technical support to its customers. The company has a commitment to product quality and consistent specifications. 

Iluka seeks to be a dependable partner for its customers and the long term growth of their business. The company is committed to product and technical development and has a separate technically based team, which works in conjunction with the company's sales and marketing personnel, to provide technical and product development support to customers.

Iluka's sales and marketing personnel work in separate product teams (zircon and titanium dioxide) and engage with customers to understand and satisfy their technical product requirements. Iluka has more than 250 direct customers, with sales in more than 40 countries. 

The company has a network of warehouses and distribution facilities with 14 global points of distribution and sales offices in 10 locations. The company is expanding its presence in emerging and developing markets.

Iluka Global Map Nov 2016 Iluka operates an online sales facility (Iluka’s Online Sales) which serves as a sales portal as well as an auction or tender site.

Iluka also operates a mineral sands trading arm (Trading IMTI).

Pricing Dynamics

Like most mineral commodities, zircon and titanium prices vary depending on supply/demand fundamentals. However, prices are set directly between producers and consumers. There is not an exchange traded or deep spot market for most mineral sands products.

Refer to Further Information below for details on mineral sands pricing.  

Historically, high grade titanium feedstock products were sold on multi-year CPI based “cap and collar” contracts. From 2009, Iluka moved to shorter term contracts. Iluka reactivated synthetic rutile capacity in 2015 which has been based, in part, on volume and price contracts over the planned campaign life of the kiln. Smaller volumes to the welding sector are usually sold on a shorter basis, usually monthly to quarterly contracts.

Iluka sells most of its zircon under contracts with a duration of three months. A proportion of volume is sold on a shorter dated basis, including spot sales.

In 2015 Iluka introduced a new pricing and payments framework. This initiative reflects Iluka's position as a major supplier of zircon and also the desire to provide a fit for purpose set of pricing arrangements for customers, given different end markets and a range of zircon product offerings. The pricing framework has been established based on a range of analytical considerations including: the value-in-use of Iluka's products to customers; different regional requirements; considerations of inducement pricing for new supply; market share as well as return on capital considerations in order to support continuing investment in the mineral sands supply.

Market Analysis and Product Development

Iluka conducts detailed industry analysis in both the titanium dioxide and zircon markets. For zircon, this includes the conduct of an annual empirical study of zircon loadings in tiles across a range of tile types and tile manufacturing locations. This analysis has provided the company with insights into ceramic trends and zircon usage patterns, for example, in the rapidly growing area of digital printing of tiles. The company also conducts analysis on trends in product usages downstream to enable it to identify and monitor trends in end usages for zircon and titanium dioxide feedstocks. 

Further Information