JOHANNESBURG (miningweekly.com) – As Base Resources marked its first zircon production this year, the mineral sands miner reported “firm demand” and “good trade activity” in the industry for the product during the quarter to March.

The Aim- and ASX-listed group, which started its own zircon production at the Kwale mineral sands project, in Kenya, in February, noted that stocks of zircon held by producers continued to be run down.

Prices had stabilised through the March quarter, with some major zircon producers expected to increase their offered pricing for zircon sales in the June quarter, the company pointed out.

Base, which reported total zircon output of 356 t since kicking off production, previously scheduled a container shipment of zircon, along with a bulk shipment of rutile, the output of which reached 8 843 t during the first quarter, for the end of March this year.

However, vessel availability resulted in the bookings for these shipments falling into early April.

Meanwhile, following its maiden shipment of 25 000 t of ilmenite in February, Base completed another bulk shipment of ilmenite during the March quarter, bringing the total sold to 47 300 t during the quarter to March.

Vessels had been booked for three further bulk ilmenite shipments during April and May.

Base recorded total ilmenite output of 68 193 t during the period under review.

Meanwhile, the company noted that reports from major pigment producers indicated continued improvement in pigment demand, with inventory levels and plant use rates normalising in the early part of 2014.

“Producer inventory of titanium dioxide feedstock remains at elevated levels, which is maintaining pressure on feedstock prices. However, as the excess inventory position is run down, the pricing position of titanium dioxide feedstock is expected to improve,” Base explained.

“Recent industry results commentary points towards possible feedstock price improvement, including rutile and ilmenite, during the second half of 2014.”