The Iluka Resources (ASX:ILU) share price just hit an all-time high. Here’s why

Shares in the Australian resources company reached a new landmark today.

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The Iluka Resources Ltd (ASX: ILU) share price has surged to an all-time high today.

Shares in the Aussie resources company have stormed more than 4% higher in today’s session.

Let’s take a look at what’s been propelling the Iluka share price lately.  

What’s fuelling the Iluka share price?

Iluka hasn’t released any price-sensitive news that could explain today’s bullish price action.

However, the company’s share price has been the beneficiary of a surge in demand for its core products.

Late last month, Iluka highlighted this increasing demand in its half-year report for FY21.

Highlights from the company’s half-year report included;

In the report, Iluka’s management noted the zirconia market had rebounded to pre-pandemic production levels.

The report cited an increase in Chinese tile products for the elevated levels of demand with titanium sales also rising on supply concerns.

For the first half, mineral sands sales volumes surged to 177 kilotonnes (kt) with weighted average prices edging higher.

In addition, the Aussie mineral sands company has also expanded its production of rare-earth elements.

Iluka is set to spend $35 million to boost its Eneabb project in WA. The project aims to source rare-earth products from waste stockpiles from its mineral sands mining.

Snapshot of the Iluka share price

Since the start of the year, shares in Iluka have soared almost 59% higher.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has only managed to claw 12% higher in 2021.

Despite reinstating its interim dividend, Iluka did not provide guidance for the full year.

The company noted that its focus remains on inventory and balance sheet management as well as progressing key projects on schedule.

At the time of writing, shares in Iluka are trading up 3% for the day at $10.30.

Earlier, shares in the mineral sands miner were up more than 4% after hitting an intraday and record high of $10.47.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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