SMM Exclusive: Zirconium-based Refractories, Niche Market Overview

The image shows the zirconium industry chain

Influenced by downstream demand, the supply of zirconium-based refractories (glass and steel) is expected to increase slightly until 2026, but the operating rate has been maintained at around 60% in recent years. Therefore, any excess capacity will keep the current capacity in a stable state in the short term.

In 2022, China's total production capacity of zirconium-based refractories (glass and steel) was 647,000 mts. Refractories manufacturers are concentrated in four provinces: Henan, Liaoning, Shandong, and Zhejiang. Henan has the largest capacity, reaching 259,000 mts, accounting for 40% of the total capacity.

By 2026, zirconium-based refractories used in the glass production will continue to grow, mainly driven by an increase in downstream photovoltaic glass production. However, those used in the steel industry will remain relatively stable, primarily due to steady downstream steel production.

Since the reform and opening-up, China has accelerated industrial modernization and significantly improved the technological of refractory materials by introducing advanced technologies and equipment from overseas. This has made domestic refractory materials more competitive in terms of quality, quantity, and price in international trade. The cost advantage and downstream expansion are the two main reasons for the continuous increase in China's exports of zirconium-based refractories.

China's refractory materials mainly serve the domestic market, with exports showing a rising trend while imports remain relatively low. In more specific fields, the growth trend of zirconium-based refractories is also notable, and the raw materials for zirconium-based refractories are an essential part of this industry chain.

From 2020 to 2026, China's exports of zirconium-based refractories (glass and steel) have been continuously increasing, primarily driven by price advantages and growing overseas demand. The exports of zirconium-based refractories used in the glass production is higher than that in the steel production because the zirconium-based refractories for glass produced in China are currently at the low end, offering significant price advantages.

Based on the understanding of the market, apart from the market research, SMM Consulting found out that besides widely used zircon sand and fused zirconia, there is also a natural ore called baddeleyite, which contains an amount of zirconium between zircon sand and fused zirconia. Baddeleyite can be used in the production of zirconium-based refractories too.
Zirconium-based refractories still belong to a niche market. After understanding the overall market situation and layout, SMM Consulting conducted more in-depth research on the use of raw materials by production enterprises, enabling a more comprehensive analysis and summary of the industry in terms of raw materials and costs, price trends, supply chain management, downstream applications, and cooperation, etc.

If you would like to learn more about past projects and more customized requirements, you may have a detailed discussion with SMM Consulting. You may contact Project Manager Wang Hemeng via phone at 17777839929 or email at wanghemeng@smm.cn. Alternatively, you may scan the QR code below to add Wang Hemeng's WeChat business account.