To obtain an orange or red product having excellent mechanical characteristics by preparing a granulated mixture of ZrO2 powder, stabilizer such as Y2O3 and MgO, glass phase forming powder containing SiO2, Al2O3 and Y2O3, CuO powder in specified proportions, and a binder, compacting the mixture, sintering the green compact, annealing and polishing.

A mixture of ZrO2 powder, 3 to 20 wt.% stabilizer selected from Y2O3, MgO, Ce2O3 and CaO 0.1 to 5 wt.% powder to form a glass phase containing SiO2, Al2O3 and Y2O3 and 0.01 to 10 wt.% CuO powder is prepared. Then a binder is mixed and the obtd. mixture is finely pulverized to obtain a granulated mixture. The granulated mixture is compacted to obtain a green compact, which is then sintered at 1350 to 1500°C at atmospheric pressure for 30 min and annealed at 700 to 1350°C for 30 min to 20 hours in an inert or reducing atmosphere at 10-10 to 1 atm oxygen partial pressure.