RE: Tight spread10 Apr 2026 15:40
The Indonesian mineral sands market (zirconium/zircon, rutile, and ilmenite) is experiencing a period of significant volatility in 2025–2026, characterized by strict regulatory shifts, increased royalties, and temporary production suspensions in Central Kalimantan. While the country remains a major global supplier—particularly for premium, low-radioactivity zircon—newly implemented annual Work Plan and Budget (RKAB) regulations have created production bottlenecks that are expected to begin easing in 2026.
Market Overview
Regulatory Tightening: In 2025, Indonesia transitioned back to an annual RKAB approval system (from a three-year system), with many 2026 quotas requiring resubmission.
Export Restrictions & Bans
The Indonesian government is aggressively focusing on domestic value-addition, creating "surplus" situations for raw material exports but tighter oversight on mineral sands.
News has to come, for one of Indonesia's suspended Zirconium producers (several) soon, let's hope it's PYX first, after all, it has the largest deposit
at the highest grades in Indonesia, the others will struggle to fill the new Indonesia - USA no limit deal.......GLA