Aim At International High-end Markets
34548 02/22/2017 Blog 282 /According to Hebei Meishen Technology Co., Ltd analysis, in magnesium oxide industry, tackle industrial overcapacity of supply-side structural reform has already achieved initial success in the past two years. In the existing capacity, the backward capacity has been halted production or closed. In 2016, it kept the balance between the total output and sales volume. The supply of market was related tight, because the inventory of magnesium oxide manufacturers is low.
The global magnesium oxide market has generally been oversupply. The low price can not bring sufficient payback to a larger number of magnesium oxide manufacturers. Some manufacturers respond market sluggishness through closing some factories and reducing yields. In order to match market environment, the global magnesium oxide industry reduces throughput rate and inventory.
With the improvement of Chinese magnesium oxide quality, and with the transformation of management idea and business practice, Chinese magnesium oxide’s market share is increasing year by year in the international market. In 2016, Chinese export volume hits record highs. For the magnesium oxide, 2017 is a key year to supply-side structural reform. After 2016, the market price is becoming more rational step by step. Therefore, this industry should calmly face the changes in the market.
During 2016, the magnesium ore resources is notable. It is in critical short supply globally and the price rises suddenly and sharply. Take domestic magnesium ore as an example, the price-rise is is also large. The magnesium ore is the roll booster of magnesium oxide’s price. It is believed that the magnesium oxide resource will be in short supply. This roll booster will put on steam again and again. Until now, this point of view is still supporting the confidence of enterprises. At the same time, it becomes important confounding factor of market.
In previous years, the global magnesium oxide turned round and marched into downward process. More exactly, it is led by significant overcapacity. So, De-stocking of the magnesium oxide started in the world. Taking history as a mirror, we are facing the same problem in 2017. Therefore, for our magnesium oxide suppliers and industry, in order to stay in an upward, the key is to reduce capacity, improve quality, produce differentiated product and aim at high-end product in the international market.
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