11 October 2012 05:18 [Source: ICIS news]
SINGAPORE (ICIS)--Australian mining firm Iluka Resources said on Thursday its third-quarter revenue for mineral sands fell 58% year on year due to lower production and demand.
Its mineral sands revenue in the three months to 30 September 2012 stood at Australian dollars (A$) 224.5m, down from $532.5m in the same period last year, the company said in a statement.
“The lower sales revenue reflects appreciably lower demand for zircon and high-grade titanium dioxide (TiO2) products, which has been a feature of 2012, despite higher prices year-to-date compared with 2011 across the main products,” Iluka said.
Iluka said that a number of its TiO2 customers were de-stocking at the time, leading to lower sales for fresh cargoes.
“Chloride pigment producers remained in a de-stocking mode through the September quarter, although recent indications, including comments from some pigment producers, suggest that this downward inventory adjustment is well advanced,” it said.
“During this process, pigment producers have had a preference to exhaust their lower priced, often legacy contract based, feedstock options before taking further volume from Iluka. Accordingly, ordering patterns from customers have been, essentially, on a cargo by cargo basis,” it said.
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