No Sign Of Trade War Fears In Demand For Basic Building Materials

Strong demand for zircon and titanium dioxide, two materials widely used in the construction industry, is helping downplay investor fears of a trade-war triggered slowdown in overall economic activity.

Because most zircon ends up as glaze on ceramic bathroom fittings and tiles, and most titanium dioxide is used in paint pigment, their rate of consumption is a guide to overall building activity, especially home building in major economies such as the U.S. and China.

Iluka Resources, which operates zircon and titanium dioxide mines in Australia and Africa, reported earlier today that market conditions for both was strong throughout the three months to the end of September with customers absorbing significant price rises.

Zircon and titanium dioxide are sometimes called heavy minerals or mineral sands because of the way they are mined, by simple earth-moving equipment or by dredging old beaches where wave action has concentrated the minerals over millions of years.

Production Up 11%

Iluka said in its September quarter reported filed at the Australian stock exchange earlier today that total mineral sands production of all of its products was up 11% in the latest quarter compared with the June quarter.