CITIC Securities: Zirconium—China’s Nano-Zirconia Ushers in Rapid Development Opportunities

Yttrium oxide, as the most critical stabilizer of zirconia, has seen global output from leading companies such as Tosoh Corporation and DKK Corporation drop sharply due to restricted rare earth supplies. It is expected that Chinese manufacturers will significantly increase their share in the global high-end zirconia market. Currently, the price of zirconium oxychloride, a raw material, has risen by 30% compared to the beginning of the year. The price of zirconia, the largest downstream application field of zirconium oxychloride, has also increased by nearly 30% since the start of the year. As a higher value-added segment of zirconia, electronic-grade high-purity nano zirconia is now quoted at as high as $50–65.7 per kilogram, and high-end yttria-stabilized zirconia powder is quoted within the range of $50–150 per kilogram, both seeing substantial price increases. The domestic high-end zirconia market is ushering in simultaneous growth in both volume and price.