Iluka Cataby rutile pause underscores weak pigment demand

Iluka

The Iluka Cataby rutile pause highlights how weak pigment demand is reshaping global heavy mineral supply. Iluka Resources will halt mining at Cataby and pause its nearby synthetic rutile kiln in Western Australia. The Iluka Cataby rutile pause begins on 1 December and responds directly to subdued titanium dioxide pigment demand. As a result, Iluka prioritises flexibility and can restart operations quickly if rutile demand improves.

Iluka Cataby rutile pause shifts production toward zircon and new projects

The Iluka Cataby rutile pause redirects attention to the group’s other Australian mineral sands assets. Iluka will suspend the 225,000 t per year SR2 kiln for six months from December. It will also halt Cataby mining for one year while maintaining restart readiness at both sites. Meanwhile, Iluka keeps its 350,000 t per year Jacinth Ambrosia zircon mine running in South Australia. The company also continues commissioning at Balranald, a next generation project due online in late 2025.

Weak pigment market pressures rutile and zircon producers

Weak pigment demand lies at the core of the Iluka Cataby rutile pause and similar industry cutbacks. High interest rates, macroeconomic uncertainty and geopolitics weigh on construction and coatings activity worldwide. Iluka notes particularly soft demand linked to real estate weakness, which curbs titanium dioxide pigment consumption. As a result, producers adjust output to protect margins rather than chase volumes in an oversupplied market.

Other heavy mineral producers face similar pressure as rutile and zircon prices struggle to hold recent gains. Some Chinese zirconium titanium operations suspended output in mid July as pricing and demand turned less attractive. US titanium dioxide producer Troxon also closed a 90,000 t per year pigment plant in March. Therefore, the Iluka Cataby rutile pause fits a broader trend of rationalising pigment related mineral capacity.

The Metalnomist Commentary

Iluka’s decision shows how even tier one mineral sands assets must flex output when downstream demand underperforms. If pigment markets stabilise and construction recovers, current curtailments could tighten rutile availability faster than expected. Market participants should watch Balranald’s ramp up and any restart signals from Cataby for early cycle indicators.