Why is zirconyl chloride price up 30% since early 2026 and what drives the rally?

Why is zirconyl chloride price up 30% since early 2026 and what drives the rally?
Zirconyl chloride, the key intermediate between zircon sand and zirconia, has risen roughly 30% since the start of the year, tracking a similar gain in downstream zirconia prices. The trigger is supply-side disruption at the high end: China's export curbs on yttrium oxide have forced Japan's Tosoh and Daiichi Kigenso to cut zirconia powder output, creating a structural gap that Chinese producers are filling. Changyu Group, the world's largest zirconyl chloride maker with 75,000 t/y capacity and about 30% global share, is a prime beneficiary. Downstream demand is broadening beyond traditional refractories into solid-state battery electrolytes, semiconductor ceramic substrates, and SOFC components. With zircon sand flat near RMB 12,300/t, the margin expansion is flowing through the zirconyl chloride-to-zirconia chain, and high-purity nano zirconia now quotes at USD 50-65.7/kg.