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ILUKA claims, zircon sand prices will move up at least 100 U.S. dollars / ton from July 1, 2010, price which is based on followed considerations:
1. Not only the Chinese market, but also European and North American markets in late 2009 and early 2010, when they recovered, the demand far exceeded people’s expectations.
2. I Luka sold all the stock in the end of the first quarter of 2010.
3. The production of ILuka new projects are still gradually increasing, which can not meet the consumption of all customers.
4. Ai Luka has increased production as much as possible, but it is very difficult to meet all the needs of our customers in 2010.
5. Competition of Australian resource investment in the mining made the costs increase rapidly (such as labor, electricity, gas, etc.).
6. Ocean freight rise rapidly this year, which is already 3 times of the same period last year.
7. The Australian dollar remained strong. 8. The rise of price on April 1st has already been consumed by the rise of cost in 2nd quarter and influence of exchange rate.
9. It is essential for the future supply of zircon production whether it’s profitable or not.
10. If the manufacturer's price and financial condition are not significantly improved, the output will decline further, and it will cause a greater shortage of zircon sand.
11.I Luka will further raise global zircon product prices on July 1,2010.
12. Price are likely to increase over 100 U.S. dollars per ton.
13. I Luka will announce a specific price increase in early June of 2010.
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