Why Dose High Purity Magnesium Oxide Market Develop Slowly?

   Sunwen, the president of China Inorganic Salt Industry Association Magnesium Compound Branch and the CEO of Hebei Meishen Technology Co., Ltd said, recent years are the most vigorous period for magnesium oxide market’s requirement. In the near future, the magnesium oxide market keeps on rising relatively. There are two primary causes. On the one hand, gone through a period without guarantee of low-end magnesium oxide, the magnesium oxide manufacturers pay more attention to high-end market. On the other hand, although the high-end magnesium oxide is always in production, it occupies a small percentage as a whole at present. Because it is affected by manufacturing technique, this kind of manufacturers is not enough. At the same time, on account of excess production capacity in earlier stage, the sales of high-end products delayed. The limited production and delayed sales lead unconspicuous sales fastigium, It creates an illusion of silence market.

“The magnesium oxide market is chaotic in the near future, some magnesium oxide manufacturers have screwed up the raw material, they produce magnesium oxide through using the cheap raw material.” These magnesium oxide has a low price, so it has a certain market. However, this kind of product will make a bad effect to terminal customers. “At first, it is easy to lose original terminal customers; Secondly, it will affect the product quality.”

   For the magnesium oxide manufacturers and dealers, the pressure of market is from not only the challenge of bad magnesium oxide but also more deeper factors. “Obviously, because of the too low price, some raw material suppliers are lack of enthusiasm. ” The price of raw material is too low. At the same time, the disadvantages of capital flow between grassroots dealers and some middlemen are thoroughly exposed. In the last few years, some of downstream customers always pay it after they using the magnesium oxide, and some of magnesium oxide suppliers didn’t sell products in this year. It is difficult to collect payment and appears problems in the aspect of fund flow. Therefore, they can not pay to middle men. It affects the regular supply of magnesium oxide market as well.