How is China's zinc oxide market shifting toward high-purity and specialty grades?

How is China's zinc oxide market shifting toward high-purity and specialty grades?
China's zinc oxide industry is undergoing structural upgrading. Indirect-process material, prized for 99.99% purity, now accounts for roughly 78% of production, serving electronics and pharmaceutical applications. Wet-process nano zinc oxide capacity has surpassed 100,000 tonnes, with particle sizes below 100 nm expanding use in catalysts and cosmetics. Import data reveals the trend: while import volumes dipped 0.28% in early 2025, import value jumped 36.09%, indicating strong domestic demand for premium grades that local suppliers still cannot fully meet. Meanwhile exports rose 24.20% in volume and 21.60% in value, reflecting improving international competitiveness. Downstream electronics demand grows about 5% annually and chemicals about 7%, outpacing traditional rubber and ceramic segments. Producers investing in calcined, nano, and electronic-grade capacity are better positioned for margin expansion.