Sembehun Project Feasibility and Market Dynamics
Appendix C: Current Market Dynamics
Sierra Rutile Limited
A global supply deficit is emerging as growing demand levels outstrip depleting global resources, leading to increasing prices for natural rutile and zircon.
Demand for natural rutile is supported by its high grade, low impurity characteristics and the configurations of chloride pigment manufacturing plants
globally.
Natural Rutile Commentary
TZMI assumes that rutile consumption is currently supply constrained (that is, there
is unmet demand due to insufficient production) and expects demand will match
supply in the near term before entering a market deficit in the longer term.
If there is no constraint on rutile supply, TZMI expects demand for rutile to be much
higher than what is projected in the base case assuming there is no significant
pricing arbitrage among the high grade feedstocks.
Natural Rutile Demand and Supply Outlook
Rutile supply
Rutile demand
Rutile demand (unconstrained)
1,000
'000 TiO2 units
800
600
400
200
2015 2016 2017 2018 2019 2020
2021f
2022f 2023f 2024f
2025f
Zircon Commentary
TZMI forecasts the current supply deficit for zircon to have notably increased by the
end of 2025. This is a result of divergent supply and demand growth forecasts, end
of mine life at key existing operations and new supply contributions being
insufficient to meet demand.
Zircon Demand and Supply Outlook
kt Zircon
1,600
1,200
800
Zircon supply
Zircon demand
Source: TZMI (February 2022).
400
0
2015
2016
2017
2018
2019 2020 2021f 2022f 2023f 2024f 2025f
32
Note: The unconstrained rutile estimate reflects TZMI guidance based on future growth in chloride feedstock demand and assuming historical consumption patterns of rutile, and displacement of other high-grade feedstocks.View entire presentation