Chan Ye Xin Xi Wang·2025-08-06 01:26Core Viewpoint - China is the largest producer and exporter of zirconium oxychloride, with rapid industry development, expanding capacity, and increasing market applications, despite a decline in consumption in traditional sectors due to economic fluctuations [1][5]. Industry Overview - Zirconium oxychloride, also known as zirconium oxychloride hydrate, is a key raw material for various zirconium products, widely used in electronics, ceramics, glass, construction materials, pharmaceuticals, aerospace, nuclear energy, petrochemicals, textiles, machinery, and daily necessities [1][5]. - The consumption of zirconium oxychloride in China reached 84,600 tons in the first half of 2025, a year-on-year decrease of 23.99% [1][5]. Industry Chain - The upstream of the zirconium oxychloride industry includes raw materials like zircon sand, caustic soda, and hydrochloric acid, as well as production equipment such as melting furnaces and crystallizers [2]. - The midstream involves the production and manufacturing of zirconium oxychloride, while the downstream applications include high-end ceramics, nuclear power materials, and chemical equipment [2]. Current Industry Status - The industry has seen rapid development, with increasing production capacity and technological advancements, although traditional sectors like ceramics and refractory materials are experiencing reduced demand due to economic cycles [5][7]. - The average market price of zirconium oxychloride was 14,800 yuan per ton by the end of June 2025, reflecting a year-on-year decrease of 7.81% due to both cost and demand factors [7]. Key Enterprises - Longyu Group, through its subsidiary Guangtong New Materials, has become the largest zirconium oxychloride producer globally, with an annual capacity of 75,000 tons [13]. - Dongfang Zircon Industry is the only listed company with significant zircon ore resources, focusing on solid-state battery electrolyte technology [13][16]. Industry Development Trends - The industry is expected to accelerate technological upgrades, pushing products towards higher added value, particularly in high-purity zirconium oxychloride for advanced applications [18]. - The concentration of production capacity is anticipated to increase, leading to accelerated industry consolidation and improved competitive dynamics [19][20]. - Emerging markets, particularly in renewable energy and 5G communications, are expected to drive demand for zirconium oxychloride, expanding its application scope [21].