Iluka Resources Ltd has reported that demands for high value mineral sands, such as zircon and rutile, increased on key markets in the first quarter of the year following restrained output during the global financial crisis.

According to AAP, Iluka's production of zircon, which is the main materials for ceramics making, spiked up to 31.8 percent on 2010's first quarter, though it was cut by 38.9 percent during the same period last year when overall productions were deliberately limited to cater to short term demands.

The company's rutile output was 23.4 percent higher in March as compared to the quarter ending in December, and also a bit 36.4 percent better during the same period of 2009.

Also, Iluka's synthetic rutile production gained 1.5 percent from the previous quarterly figure but slid by 37.8 percent as compared to the same period last year

The company supplies rutile to industries engaged in making titanium dioxide pigment for paints and is also utilised by the aerospace industry.

After instituting crucial production adjustments, Iluka posted total sales revenue of $39.9 million for March, which is 33 percent lower than that in December but a significant 289.5 percent improvement from the same period last year.

Still, the company said that overall sales were not at par for the quarter and it is expecting that sales will be continuously hampered by production limits for most of the current year and going into 2011.

Iluka expressed confidence though that zircon demands from all its major markets are showing signs of recovery, adding that total sales in the first three months of the year were higher as compared to the first quarter postings of 2008 and even a bit lower compared to the sales registered in December 2009.

AAP has reported that Iluka revealed significant but quiet advancements were seen at the start of this year as manifested by still negotiated bulk orders from Europe, and coupled with surging sales and demands in North America and China, which further showed that recovery is underway coming from the depression experienced in 2009.