In 2014, the adjustment of industry and product structure is the only way out for magnesium oxide industry. Uneven is the characteristic in China, and it mainly reflects in unbalanced utilization ratio, unbalanced production and price changes. Uneven is meaning that industry development is getting faster and faster, the output of magnesium oxide industry will continue to grow, but at the same time, the number of production enterprises will gradually reduce, in other words, industry concentration is gradually improving.
It is the reality we are faced that one side we export low-end magnesium oxide, the other side to import of high-end magnesium oxide. Magnesium oxide in China is mainly exported to Brazil, India, Malaysia and other countries. In the international market, domestic companies just use the low price to occupy low-end market. And due to overcapacity and low-end products, the price of magnesium oxide in China will be sustained downturn.
Faced with the grim situation, we should also understand the advantages of magnesium oxide industry. For example, cheaper artificial cost, industry support, not too strict in environmental policy. So we should spend a few years time to integrate, plan, adjust the product structure and varieties. In totally, domestic magnesium oxide enterprises must think globally, and think about the solution.
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