As most of the market is aware, zircon is in tight supply, and has been for some months. A new report just released by Roskill Information anticipates that the shortfall could be more than 100,000 tonnes in 2005. The 251-page report goes on to reveal that even if planned mineral sands projects come into production over the next 10 years, demand will still outstrip supply. The report explains that the shortage of zircon is largely a result of mineral sands production - zircon being extracted as a co-product or by-product of titanium minerals, the market for which is currently over-supplied. If zircon production does not increase to meet the expanding demand, prices will continue to rise to a point where consumers in one or more industries may switch to using alternative materials.
