CITIC Securities: Zirconium - China's nano zirconium oxide welcomes rapid development opportunities

CITIC Securities believes that with the accelerating development of the solid-state battery industry, the rapid growth of the SOFC industry, the entry of electronic-grade bio-ceramics and nuclear energy into a new cycle of recovery, the demand for high-end zirconia in emerging fields will steadily increase. Yttrium oxide, as the most critical stabilizer for zirconia, has seen a significant decrease in global leading producers such as Japan's Tosoh and China's China Northern Rare Earth Group due to limited rare earth supply. It is expected that Chinese manufacturers will significantly increase their share in the global high-end zirconia market. Currently, the price of zirconium oxychloride as a raw material has increased by 30% compared to the beginning of the year, while the price of zirconia, as the largest downstream application area of zirconium oxychloride, has also increased by close to 30% since the beginning of the year. As the part of zirconia with higher added value, the price of electronic-grade high-purity nano-zirconia is as high as $50-65.7/kg, and the price range for yttrium-stabilized zirconium high-end powder is as high as $50-150/kg, with prices similarly experiencing significant growth. The domestic high-end zirconia market is experiencing a simultaneous increase in volume and price.