Industry Overview - Zinc oxide (ZnO) is a significant inorganic compound widely used in rubber, electronics, coatings, and ceramics. The demand for zinc oxide is increasing due to the continuous recovery of the domestic economy and industrial upgrades, leading to a rise in production [1][10] - In the first five months of 2025, China's zinc oxide production reached 325,400 tons, a year-on-year increase of 21.89%, while consumption was 322,100 tons, up 20.93% [1][10] - The indirect production method of zinc oxide has increased its share to 78%, with high purity (99.99%) characteristics meeting the needs of high-end fields such as electronics and pharmaceuticals [1][10] - The production capacity of wet nano zinc oxide has surpassed 100,000 tons, with small particle size (<100nm) and large specific surface area, leading to rapid penetration in applications such as catalysts and cosmetics [1][10] Industry Development History - The development of China's zinc oxide industry has gone through four stages: 1. Initial stage (before the 1980s) with state-owned enterprises primarily producing basic zinc salt products [4] 2. Joint production stage (1980-1990) focusing on multi-variety zinc salt production [4] 3. Specialized production stage (1990-2013) with the rise of township and private enterprises, leading to the establishment of four major production bases [5] 4. Resource recycling stage (2013-present) focusing on the utilization of secondary zinc resources and achieving cost reduction and technological upgrades [5] Industry Chain - The upstream of the zinc oxide industry chain includes raw materials (zinc ore, recycled zinc, calcium carbonate, sulfuric acid, coal) and production equipment (reactors, filters, drying machines) [8] - The midstream involves the manufacturing of zinc oxide, while the downstream applications span rubber, coatings, ceramics, pharmaceuticals, semiconductors, and more [8] Current Industry Status - The zinc oxide market is experiencing growth driven by increased demand from downstream industries, with significant production and consumption figures reported for early 2025 [10] - The price of zinc oxide in June 2025 was 21,400 yuan/ton, reflecting a year-on-year decrease of 6.54%, influenced by a relaxed supply of zinc ore globally [12] - In the first five months of 2025, China imported 2,549.37 tons of zinc oxide, a slight decrease of 0.28%, while the import value increased by 36.09% due to high international prices [14] Key Enterprises - The zinc oxide industry in China is characterized by a diverse structure led by major enterprises, with ongoing technological upgrades and a focus on green transformation [16] - Anqiu Hengshan Zinc Industry Co., Ltd. has an annual production capacity of 30,000 tons of indirect zinc oxide, exporting to over 80 countries [16] - Jiyuan Lutai Nano Materials Co., Ltd. is set to become the largest domestic producer of nano zinc oxide with a planned capacity of 30,000 tons [16] Industry Development Trends - The research and development of nano zinc oxide and high-purity zinc oxide are becoming core driving forces, with significant advancements in electronic device applications [23] - The market demand structure is shifting from traditional sectors to emerging industries, with increased applications in new energy vehicles and photovoltaics [24] - The recycling system for zinc is improving, with a recovery rate of 95%, and the industry is witnessing a rise in concentration as smaller, less efficient companies are phased out [25]