Strategic Materials "Previewing the Quarterlies" Ariyasinghe

Research evidence excerpt

Strategic Materials "Previewing the Quarterlies" Ariyasinghe

th mid-term prices rising

to US$88/lb and long-term prices reaching US$97/lb. Industry feedback suggests

utility contracting is gaining momentum, with increasing focus on securing

deliveries into the 2030s and beyond. On the supply side, there appears to be

growing recognition that a relatively small number of producers control a

significant portion of future supply, supporting greater willingness among utilities

to commit to long-dated contracts with higher fixed-price components.

Meanwhile, TradeTech’s Production Cost Indicator has reached a record US$62.10/

lb, highlighting ongoing cost inflation and project execution risks across the sector.

Sulphur availability and pricing remain key watchpoints for us given their potential

impact on ISR operating costs and project economics.

Zircon: Industry feedback tells us that momentum in zircon markets is building

with recent price hikes driving pre-buying among customers ahead of further

potential increases. Zircon demand in China has remained broadly steady through

the year, although uncertainty creeps on what 2H26 could look like. Meanwhile Z

buying India is understood to have strengthened markedly, potentially in

anticipation of further price hikes; the market for premium-grade zircon looks to

be comparatively tighter. UBS estimates Z prices averaging ~US$1,500/t for the

remainder of CY26.

Titanium Feedstock: According to TZMI, global pigment demand looks to have

increased both sequentially and y/y supported by robust performance across APAC

albeit with evidence of front-loading ahead of anti-dumping duties in some

jurisdictions. This has seen an improvement in global feedstock markets and