China has announced a price increase for zirconium compound products, which is expected to raise the costs of multilayer ceramic capacitors (MLCCs).
On the evening of July 20, Chinese chemical company Guozi Cailiao announced via the Shanghai Stock Exchange that it will raise the selling price of zirconium oxide (zirconia) powder products by up to 40% starting July 27.
Guozi Cailiao is a leading ceramic materials company in China. Zirconium oxide is considered a high-value product among ceramic materials. Given Guozi Cailiao's price hike, other ceramic material companies in China are also expected to follow suit with increases in zirconium oxide prices.
Zirconium is primarily mined in Australia and South Africa. The mined zirconium is imported to China, where it undergoes refining and processing to become zirconium oxide. China holds about 80% of the global market share in the production of zirconium chemical products, particularly dominating the production of zirconium oxychloride, an intermediate step in making zirconium oxide, with a 90% share worldwide. Therefore, Guozi Cailiao's price increase is likely to impact the global market.
Zirconium oxide is used in dental prosthetics and the manufacturing process of MLCCs. The surge in demand for MLCCs, driven by the boom in AI data center establishments, has led to an increase in the demand for zirconium oxide, contributing to the price rise. As the price of zirconium oxide, a key material for MLCCs, increases, it is anticipated to drive up MLCC prices as well.
A source within the industry in China noted, "As the price of zirconium oxide rises, MLCC manufacturers may also consider adjusting their product prices."
* This article has been translated by AI.
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