China’s Jiangxi Kingan to Suspend Zirconium Oxychloride Production for Maintenance

China’s Jiangxi Kingan Zirconium

Jiangxi Kingan Hi-Tech, China's second-largest producer of zirconium oxychloride, will halt production for 15 days starting August 11 to perform routine equipment maintenance. During this period, the company plans to maintain adequate inventory levels to continue supplying its long-term customers. The domestic prices for zirconium oxychloride have remained steady at 14,700 yuan per ton ($2,027 per ton) due to reduced profit margins.

As a state-owned enterprise under the Jiangxi Nonferrous Geological Exploration Bureau, Jiangxi Kingan has a registered capital of 158 million yuan ($22 million). The company boasts significant production capacities, including 72,000 tons per year of zirconium oxychloride, 3,000 tons per year of zirconia, 20,000 tons per year of zirconium sulfate and zirconium carbonate, and 1,200 tons per year of stabilized zirconia.

Similarly, Imerys Zhejiang Zirconia, another major Chinese zirconium producer, will also suspend oxychloride production in early August for equipment maintenance due to high stock levels, narrowed profit margins, and weak demand from the zirconium chemicals sector.

Market expectations indicate a potential decline in spot oxychloride prices due to lower zircon sand feedstock costs, increased spot stocks, and sluggish demand from the zirconium chemicals industry. Zircon sand prices in Hainan province fell to 12,200-12,400 yuan per ton on July 23, down from 12,300-12,500 yuan per ton on July 16.

Export prices for zirconium oxychloride are anticipated to decrease as domestic prices drop and competition among exporters intensifies. From January to June, China exported 25,371 tons of zirconium oxychloride, marking a 17% increase from the same period in 2023. June exports alone totaled 5,023 tons, up 23% from the previous year, with significant shipments to Japan, the US, and India.

China's 2020-2024 zirconium oxychloride exports (t)

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