Imerys Zhejiang zirconium oxychloride restart lifts China’s zirconium market outlook

Imerys Zhejiang

Imerys Zhejiang zirconium oxychloride restart begins on 10 August after a July shutdown. Imerys Zhejiang zirconium oxychloride output paused to counter weak margins and high stocks. Imerys Zhejiang zirconium oxychloride capacity sits at 40,000 t/yr, supporting export flows.

Restart timing and short-term supply effect

Imerys will restart oxychloride production on 10 August. The shutdown began on 20 July. Management aimed to remove roughly 3,000t from supply. The producer cited thinner margins, elevated spot inventories, and muted downstream demand. Therefore, the restart may tighten near-term supply only modestly. The company currently offers oxychloride at Yn13,800/t ex-works, plus VAT.

Pricing pressure and trade dynamics

Zirconium prices sit near a four-year low, squeezing Chinese producers. Shandong Guangtong and Jiangxi Kingan also face slow purchasing. Meanwhile, Tronox and RBM cut zircon sand offers for third-quarter deliveries to China. Feedstock relief helps smelters, but demand remains the key swing factor. China’s oxychloride exports rose 13pc to 28,615t in January–June. US tariff cuts in May lifted US purchases in May–June.

Capacity, customers, and competitive position

Imerys Zhejiang runs 40,000 t/yr of oxychloride capacity, or about 3,000 t/month. The site remains one of China’s major oxychloride exporters. The business became part of Imerys after the 2017 Zhejiang Zr-Vally acquisition. As a result, Imerys retains strong buyer access in the US and Asia. However, producers still struggle with weak margins and volatile orders.

The Metalnomist Commentary

This restart signals cautious confidence but not a demand turn. Watch US orders and downstream zirconium chemicals consumption for trend confirmation. If prices stabilize and export flows hold, margins could recover into late 2025.