Zirconium Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The global zirconium market is projected to register a CAGR of over 5% in terms of volume during the forecast period 2022-2027.

A sharp increase in the number of COVID-19 cases led to numerous countries resorting to lockdowns, which significantly affected the global economy. The economic and industrial activities came to a temporary halt, which led the zirconium market to witness repercussions in terms of both production and demand from end-user industries, such as iron and steel, cement, energy and chemicals, and ceramics. However, the increasing focus on developing nuclear power resources is expected to help the market achieve positive growth.

• Over the medium term, the major factors driving the market’s growth are the growth in foundries and refractories, the increasing number of nuclear power stations in Asia-Pacific, and the accelerating usage of surface coatings. The most significant increase in nuclear generation in Asia-Pacific is expected in China (11 stations are under construction and 43 are being planned) and India (7 stations are under construction, and 21 reactors are expected to be brought online by 2031).
• The zircon segment accounted for the largest share of about 70% of the total volume of the market studied.
• China dominated the market studied, accounting for about 50% of the total revenue, and it is expected to witness the fastest CAGR over the forecast period.

Key Market Trends

Increasing Demand from Zircon Flour/Sand

• Zircon is widely used in ceramics and foundry, mostly in the form of sand and flour (milled sand), due to its various properties, such as the ability to bind with all organic and inorganic sand binders, low acidity, low thermal expansion coefficient, and high spatial stability at increased temperatures, chemical stability at high temperatures, and good recyclability.
• In ceramics, zircon sand is used for its highly valuable properties, such as its high refractive index for opacification. Its ancillary benefits, including its ability to impart greater mechanical strength, toughness, and durability to ceramic bodies and glass matrices, are established attributes and enable it to find applications in specific segments in the ceramic industry, thereby catering to markets with a preference for these attributes.
• In foundry applications, it is used widely as a molding base material for sand casting, investment casting, and Cosworth casting (aluminum). It is also used as a mold coating in die casting and in refractory paints and washes, as it reduces the wettability of other foundry sands.
• Zircon sand is used for mold and core manufacturing, where its refractoriness, low expansion, reduced wettability by molten steel, and high thermal conductivity offer significant advantages over silica sand.
• Zircon foundry sands produce a better metal finish, a lesser likelihood of ‘burn-on,’ and improved metal solidification. It increases the resistance to metal penetration and imparts a uniform finish to the casting.
• Owing to the abovementioned factors, the demand for zircon flour/sand is expected to grow over the forecast period.

China to Dominate the Market

• China dominated the global market share for zirconium and is gaining popularity as the fastest-growing consumer of nuclear energy in the present scenario. The increasing focus on developing nuclear power resources is expected to increase the demand for zirconium.
• China has been a major consumer and exporter of ceramics globally. According to the China Building Ceramics and Sanitaryware Association, there were more than 1,450 ceramic tile manufacturers in the country, operating more than 3,600 production lines.
• China is the largest consumer and producer of ceramic tiles. Some of the major ceramic tile manufacturers include NewPearl Group (with a capacity of more than 200 million square meters), Zhongyuan Group (with a capacity of around 100 million square meters), and Nabel (with a capacity of over 78 million square meters).
• China is currently gaining popularity as the fastest-growing consumer of nuclear energy. The country has 50 operable nuclear reactors, with a combined net capacity of 47,518 MW. The country is also leading in the construction of new nuclear reactors (14) with a combined capacity of 13,175 MW. The increasing focus on the development of nuclear power resources is expected to increase the demand for zirconium.
• The growth in industries, such as refractories and ceramics, is expected to drive the market studied in the forecast period 2022-2027.

Competitive Landscape

The global zirconium market is consolidated, with the top five companies accounting for around 70% of the global consumption. Most of the consumption of zirconium is in Asia-Pacific and Europe. Major players in the market include Iluka Resources Limited, Rio Tinto, Tronox Holdings PLC, Kenmare Resources PLC, and Eramet.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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