According to the CITIC Securities Research Report, the Ministry of Commerce tightened export controls on dual-use items to Japan, which may have impacted Japanese zirconia manufacturers. Chinese zirconia powder and porcelain tile manufacturers are expected to benefit and expand their overseas market share. According to QY Research, the global zirconia market will reach 4.23 billion yuan in 2025, and Japanese manufacturers such as DKKK, Tosoh, and Showa Denko occupy important market positions. According to the official website of the relevant company, DKKK and TOSOH are directly or indirectly involved in military products, so we think they may be affected by export controls and the import of yttrium oxide from China is blocked. According to the WeChat account of the Bureau of Justice, China accounts for more than 93% of the world's yttrium oxide production capacity. Due to rare earth export controls in the first half of 2025, the price of yttrium oxide increased by up to 50 times from the beginning of 2025 to the end of November 2025. Combined with the potential impact of this export control, we believe that the operations of Japanese zirconia manufacturers will be greatly impacted. If the production of Japanese manufacturers is impacted by export controls, it will directly benefit Chinese zirconia powder manufacturers to speed up their market share. At the same time, customers of Japanese zirconia manufacturers will also be affected, which will benefit corresponding Chinese peers to gain market share.

According to the CITIC Securities Research Report, the Ministry of Commerce tightened export controls on dual-use items to Japan, which may have impacted Japanese zirconia manufacturers. Chinese zirconia powder and porcelain tile manufacturers are expected to benefit and expand their overseas market share. According to QY Research, the global zirconia market will reach 4.23 billion yuan in 2025, and Japanese manufacturers such as DKKK, Tosoh, and Showa Denko occupy important market positions. According to the official website of the relevant company, DKKK and TOSOH are directly or indirectly involved in military products, so we think they may be affected by export controls and the import of yttrium oxide from China is blocked. According to the WeChat account of the Bureau of Justice, China accounts for more than 93% of the world's yttrium oxide production capacity. Due to rare earth export controls in the first half of 2025, the price of yttrium oxide increased by up to 50 times from the beginning of 2025 to the end of November 2025. Combined with the potential impact of this export control, we believe that the operations of Japanese zirconia manufacturers will be greatly impacted. If the production of Japanese manufacturers is impacted by export controls, it will directly benefit Chinese zirconia powder manufacturers to speed up their market share. At the same time, customers of Japanese zirconia manufacturers will also be affected, which will benefit corresponding Chinese peers to gain market share.