High Price of Material Leads to Long-run Loss

   In the current contract price formula, the cost factor of magnesium oxide occupies more than 70 percents. The rest factor is magnesium oxide price. Because the price of raw material such as high, and the Chinese supply quantity is increasing rapidly. Since the beginning of the year, the Asian magnesium oxide manufacturers are in loss money all the time.

   Magnesium oxide manufacturers demand that some end-users should assure contract price next year according to 30% of cost and 70% of average spot price. If conforms to the new formula, Chinese end users need to pay more money when purchase magnesium oxide for long term contract. The new formula acquires the magnesium oxide has a higher price than the current. According to the analysis from Meishen Technology, the reason why Chinese purchasers are not easy to accept the new pricing model is that it adds to cost obviously. What’s more, the domestic supply is enough sufficient. Just because China has a large number of magnesium oxide, the price decreases a lot. However, the requirements of newly-built downstream equipment need’s commissioning is increasing continuously, the price gets a support.

   In each year, Meishen Technology analyzes the national policy and planning analysis of magnesium oxide manufacturer, the product technical parameter, production technology, product cost structure and so on. And then, it counts Chinese main magnesium oxide manufacturers’ capacity, output, cost, price, gross margin, output value and other detail data. At the same time, it counts these manufacturers’ magnesium oxide products, customers, applications, capacity, market position, contact way and other information. In the end, after tabulate statistics and summarize it, Meishen Technology gains the market shares of Chinese magnesium oxide capacity, supply, quantity demanded, relation between supply and demand, import volume, export volume, measure of consumption and other data. Combining with the magnesium oxide industry’s upper raw material, downstream customer and diagnoses, it drafts the magnesium oxide industry development tendency and strategy suggestion to assure the investment feasibility of next year’s magnesium oxide new project.

How About the AR Magnesium Oxide?

Name：AR Magnesium Oxide

   The AR magnesium oxide is a kind of white and shapeless powder, and colorless, tasteless, non-toxic. The relative density is from 3.26 to 3.43. It is soluble in acids and ammonium salt solution, insoluble in water and ethyl alcohol. On the scale of near ultraviolet light and visible ultraviolet light,it has strong refractivity. When it is exposed to the air, it is easy to pick up moisture and carbon dioxide. And then, it gradually becomes basic magnesium carbonate, and forms magnesium hydrate integrates with water and presents alkalescency reaction. The PH value of the saturated water solution is 10.3. However, it is easy to soluble in dilute acid, and slightly soluble in pure water. The existing of carbon dioxide increases the solubility. It is a kind of soft catalyst. The density ratio is 3.58, melting point is 2852℃ and boiling point is 3600℃.

Chemical Formula: MgO

Relative Molecular mass: 40.30

Quality Standard: HG/T2679-2006

Ionic Equation:

MgO+2H+=Mg2++H2O

MgO+2NH4+=Mg2++2NH3↑+H2O

Main Application

The AR magnesium oxide mainly used for reagent industry, other chemical engineering or midbody. The fluorescent grade magnesium oxide mainly used for tribasic fluorescent powder and the raw materials of other luminous bodies.

Preparation Method

Vapor phase method, The brine - ammonium bicorbonate method, Carbonization method

The matters need attention and safety precautions

Respiratory protection: Recommend wearing anti-dust respirator.

Eye protection: In necessity, it can adopt safety face shield.

Protection suit: Wear work clothes with tight sleeves.

Hands protection: Must wear the protective gloves.

Invasion route: inhalation, ingestion.

Health hazard: It causes the magnesium foundryman's fever if inhaled. The symptoms include metallic taste in mouth, thirst, dry throat, inappetence, chest can feel tight, dry cough, headache, swirl, limb pain and feel cold with a high temperature. A large number of magnesium oxide dust may block the sebaceous gland duct and lead the skin papules, eczema.

Method of extinguishing: non-combustible. And the available fire fighting medium around the fire.

Others: At the work site, No Smoking, eating and drinking. After work, changes clothes after showering. Pay attention to cleanliness and personal hygiene.

   As the one of magnesium oxide manufacturers engaged in the earlier, the president of Meishen Technology introduces, “The technical innovation is the sources of all things.” Depending on the technological superiority, Meishen Technology increases the investment of research and development in recent years, and forms several kinds of product line. These products include light magnesium oxide, food grade magnesium oxide, AR magnesium oxide, pharmaceutical grade magnesium oxide and so on. What’s more, it develops and researches a group of new magnesium compound with proprietary intellectual property rights.

The Increasingly Magnesium Oxide Market Concentration

   Because the small-scale magnesium oxide manufacturers have limited investment and technological level in environmental protection respect, there are always substandard in environmental protection in the process of production. It brings large pressure to the environmental protection. Expert believed, with the increasingly labor cost, transportation cost and finished cost, under the intensive of market competition, the market concentration will be go on decreased slowly. However, the promotion of high-end oriented is one of the methods to relieve this phenomenon. It is estimated that a large number of low-end magnesium oxide magnesium oxide manufacturers will be weeded out the market, these manufacturers did not meet the conditions. Therefore, the market concentration will be improved gradually.

   In the last few years, the magnesium oxide industry were filled environmental protection and reorganization. The check of environmental protection is strict, and happens all of the time. In order reply it, most magnesium oxide suppliers and manufacturers have to reduce operating rate. The environmental protection has a great influence on the magnesium oxide industry. In this subtle market, there is no doubt that it is a further stinging blow. And the message of environment protective reorganization is still in spreading all over the country, a lot of low-end magnesium oxide manufacturers was forced to be closed. Among it, the most stricken is the areas which are famous for processing magnesium oxide. So, the market was badly hurt.

   At present, the most of magnesium oxide suppliers and manufacturers is small business or low-end magnesium oxide. There are some characteristics in magnesium oxide industry: numerous enterprises, the average size is related small, and the market concentration is related low. It is bad for using resources scale and intensification. However, at present, several focused market with grand scale are also reorganized. In connection with this, Meishen Technology accelerates the step of upgrading and transformation, and reforms the making process equipment. It becomes the only bright spot in this environmental attacking battle. What’s more, this magnesium oxide supplier and manufacturer occupies 90 percent of high and mid grade magnesium oxide market in domestic. It is also one of the three major production bases of magnesium oxide in the world.

Magnesium Oxide is an Important Role

   Although the magnesium oxide has already developed several tens of years, a lot of people is still not too familiar with it. Especially the people who do not contact with chemical industry, they even had not heard of these words. Today, following with the Meishen Technology, let us talk about the important role of magnesium oxide in the production and development.

   As a professional magnesium oxide manufacturer, Meishen Technology has advanced technology and raw material. The magnesium oxide produced by it has high activity and high performance. It can be used in a large number of fields, and has more advantages on domestic and overseas markets.  

   In addition, the imported manufacturing technique is different be different from the domestic manufacturing technique, so the content of magnesium oxide is relatively different. The magnesium oxide, which manufactured by more advanced imported manufacturing, can be applied in higher end products. The oversimplified production and burning lead that the magnesium oxide has no competitive power. The production technology of Meishen Technology is advanced all over the world. Therefore, the magnesium oxide produced by it also can be used in more extensive fields.

   Because of the different R&D and manufacturing strength, the price of magnesium oxide is also different. As a matter of fact, the quality of oversea magnesium oxide is the same as the domestic. However, the price is expensive. Meishen Technology is rising gradually depends on accurate after sales service and growing R & D and production capacity. For example, the Metallurgy Magnesium Industry can produce pharmaceutical grade magnesium oxide and food magnesium oxide. It is the brand of Meishen technology, and one of the few magnesium oxide manufacturers can produce high purity magnesia in the domestic.

   As the largest magnesium oxide supplier and manufacturer in China, Meishen will focus on the rise of this industry, lead domestic magnesium oxide brand go to the world. 

Important Grasp in Pharmaceutical Grade Magnesium Oxide

   At present, the environmental protection policy of Chinese pharmaceutical grade magnesium oxide has already matured preliminarily, and established the implementation and policy system of industry’s clearer production technology. Leaded by these policies, the environmental protection will be an important grasp to adjust the structure of pharmaceutical grade magnesium oxide industry. The advantage magnesium oxide manufacturers will occur new opportunities.

   In pharmaceutical grade magnesium oxide industry, the government will push to carry out the cleaner production technology program, establish technical information communication platform. Therefore, local government will pay more attention to the enterprises’ cleaner production technical project. At present, China has already preliminarily worked out the labeling policy of ecological design products: according to enterprises’ independent statement, the assessment from the third test institution and the authorization identifier from government, it can promote the environmental protection of pharmaceutical grade magnesium oxide in selecting raw material and designing formula. Across the country, it has already established organizational system to check the cleaner production. In addition, for some parts of advanced technology  which conforms the requirements of cleaner production, the country give special funds to support. 

   Now, our country emphasizes to recognize some influence factors: identification and assessment of environmental impact after enterprises’ closed or removal, ecological environment and others. What’s more, it concluded 8 evaluation factors, such as solvent, raw material, etc. It further improves the standard system of clearer production technology, and establishes scientific basis for enterprises investment. Thus, the local environmental protection administrations have a uniform environment assessment dimension. And it is promoted for the environmental protection level of pharmaceutical grade magnesium oxide construction project.

   At present, the pharmaceutical grade magnesium oxide suppliers and manufacturers are facing numbers of restraining factors: capital, technology, unreasonable competition platform, etc. However, most of them have established environmental protection idea. With the implementation of a serious of policies, for example, promotion strategy of clearer production technology, the environmental protection of pharmaceutical grade magnesium oxide industry will be facing a favorable policy environment . The adjustment of industrial structure will deepen further as well. Therefore, the advantage enterprises will face a new opportunity. 

How to Build Loyal Client Base?

   From the Hebei Province, especially the Xingtai city, the magnesium oxide produced by Meishen Technology gradually extends to provinces and cities. At present, the sales territory has already covered Chines. The magnesium oxide has been sold to overseas many years ago. What’s more, it has a high popularity and market share in national and international markets. Therefore, what lead Meishen get here? And how to build the loyal client base?

   As a matter of fact, in the magnesium oxide industry, the customers always use unfixed brands. There are two reasons: on the one hand, the real good magnesium oxide is not much. On the other hand, there are various of marketing ways in various of brands, it leads that customers are hard to select. It is not easy to change customers’ habit. For the magnesium oxide, they have a process of acceptance. During the promotion, some customers want to change brand when they see the cheaper product, or hear about dealer change to another magnesium oxide manufacturer. However, Meishen Technology has confidence in products, and has and patience to customers. it need a repetitive process to consolidate the customers. At last, they can become loyal customer, even the loyal client base.

   Do not think this method is stupid, the most key of it is to solve the customers’ requirements. Depending on sales growth for long-term stable, Meishen Technology can take root in customers’ heart. Under the stupid method, the professional sales team of Meishen Technology expands the market step by step. In the Hebei Province, where is the magnesium oxide supplier created, a large number of customers has used Meishen Technology’s special magnesium oxide for more than two decades. In addition, Meishen has upgraded magnesium oxide for several times through the manufacturing technique and the technical improvement.

How About the Magnesium Oxide Used for Thermal Conducting Filler?

   The magnesium oxide can be used for fill silicone rubber. When the dosage is less than 200, the heat conductivity and tensile strength of magnesium oxide with small particle size are larger than large particle size. And the rate of elongation at break is opposite. In addition, it is helpful for silicone rubber’s heat conductivity through adding a certain silane coupling agent. The optimum volume is about 0.5 percent of the usage of large particle size magnesium oxide.

   The thermal conducting filler is the mixed particle of aluminium oxide, magnesium oxide and boron nitride. It has good heat-conducting property and insulating property. Because it has a certain flexibility, and can tightly close with power device, heat aluminum fins, heat copper or machine casing. Therefore, it can obtain the good results of heat conduction and heat dissipation. At present, it has already been used for microprocessor, direct current converter, relay, UPS, automotive electronics, projectile lamps and other electronic products. At present, there are some thermally conductive and insulating filler of rubber with well heat-conducting property and insulating property: aluminium oxide, silicon nitride and others.

   The magnesium oxide’s heat-conducting property is slightly better than aluminium oxide, and can manufacture the rubber mat with higher thermal conductivity. Its electrical property is inferior than aluminium oxide. However, it still can meet the requirements from ordinary electric equipment products to insulating cement. And it is a kind of excellent thermally conductive and insulating filler of the rubber. But there is few report about it.  

   Meishen Technology is the largest magnesium oxide manufacturer in China. It was based on the new mode of management, perfected technology, attentive service and excellent quality. At present, our company has been already succeed in going abroad. 80% of trade business in the company is foreign trade business. What’s more, the products are widely recognized at home and abroad.

   If you are interested in our products, you can give us a message or directly with our newsletter. We will contact with you as soon as possible after get your message. We are really looking forward to cooperation with all friends and sharing the successful result. Welcome new and old customers to visit our company! 

Meishen Realized Technical Progress of Capacity

   The Meishen Technology, a professional magnesium oxide manufacturer and supplier,  realized the technical progress of capacity and equipment, and promoted the level of national industry. The magnesium oxide project is the achievement of science and technology innovation in our country’s magnesium oxide industry. It conforms to the national industry policy, and achieves the domestic advanced level and international advanced level. It need strengthen the promotion and further develop high-end products.

   The Meishen Technology is a national new high-tech enterprise and the industrialized demonstration project enterprise of the national torch plans. What’s more, it is the engineering technology center of magnesium oxide, the innovative pilot enterprise in Hebei Province. For the Meishen Technology, the high purity magnesium oxide is a new start. It will further accelerate the optimize and upgrade of high-end magnetism oxide, and further enlarged singlet line capacity. To create viable famous brand, it is trying hard to achieve and exceed the quality level of foreign products.

   The high-end magnesium oxide project of Meishen takes the research and development road of based on domestic, independent and self-dependence. Compared with other production of high-end magnesium oxide, it is fundamentally different. This professional magnesium oxide supplier’s high-end magnesium oxide production project adopts new fashioned technology, the selection of project process is reasonable. Its advanced technology obtained numbers of national patents, and has own intellectual property completely. In the application areas, it can replace imported high-grade products absolutely, and meet the application requirements of customers. What’s more, the magnesium oxide has short production process technical flow, high quality, low comprehensive energy consumption, good resource utilization and less emission. It conforms to the national industry policy, and stands for the new development direction of domestic magnesium oxide industry’s transformation and upgrading.

New Road of Magnesium Oxide Industry

   For the magnesium oxide manufacturers, the past two years was facing domestic trouble and foreign invasion: the price of raw material and magnesium oxide is rising, the demand from customers is decreasing, the production cost continues to rise. Just under such a background, a large number of magnesium oxide suppliers and manufacturers only select to eke out the production in last year. However, for Meishen Technology, last year is a genuine bumper year.

   As the leading brand in the Chinese magnesium oxide industry, the Meishen Technology has a number of unique advantages in these apsects: popularity, distribution channel, professional services and others. However, at the background of industry restructuring, it is imperative to change the business. Sunwen, the CEO of Meishen Technology said, the present transition and upgrading is the new road of the magnesium oxide industry. The Meishen’s employees should continually pay more attention to the industry development, continually innovate and reposition products, service and channels.

   The good product comes from advanced technology and tight management of magnesium oxide suppliers. In the last few years, Meishen Technology are working hard on technical transformation and business administration meticulously. Sunwen also said, Meishen is successful in grasping market chances in these years, just because the above foundation works.

   At present, the magnesium oxide of Meishen Technology can be produced more than ten thousands tons each year. Every production index can achieve the national standards. So much so that Meishen’s quality standard has already exceeded international and EU standard. On the aspect of product, Meishen Technology can research, develop and produce various of products: high purity magnesium oxide, nano magnesium oxide, pharmaceutical grade magnesium oxide, food grade magnesium oxide, AR grade magnesium oxide, etc. What’s more, it occupies an important status in the magnesium oxide market at home and abroad. With the continuously optimize product mix and diversified varieties, in order to meet the market requirement, it need to develop toward the high-end magnesium oxide.

Applications of Nano Magnesium Oxide with High Activity

   The high active magnesium oxide is a kind of important material with larger outward appearance. It can prepare inorganic material, electronic components, printing ink and adsorbent with fine and high function. Because of the fine particles, the share of outside atom and bulk phase atom is larger and has extremely high chemical activity and physical absorption. Because of its outstanding sintering function, it can made high fine superfine ceramics and multifunctional MgO thin film. It is easy to compound with high polymer or other materials. The primary role of high active magnesium oxide is used as accelerant and activator in butyl rubber, chloroprene rubber, butadiene styrene rubber and fluororubber. The activity of MgO can increase the crosslinking density of butyl rubber. Therefore, it improves rubber stopper’s physical function. What’s more, it is often used for padding of adhesive, plastics, oil paint and paper. In the medicine, it is usually used as antacid and aperient to treat hyperacidity and duodenal ulcer. Under the high temperature, it has excellent alkali resistance and electrical insulating property, high coefficient of thermal expansion and thermal conductivity, and outstanding light projection.

   The high active magnesium oxide has good sintering character, because the existance of surface atom and surface defect, the diffusion rate of surface atom is very fast. If you use high active nano magnesium oxide, it can realize low temperature sintering without the sintering aids. What’s more, it can make dense superfine ceramics and multifunctional MgO thin film. It is expected to develop advanced materials under harsh conditions, such as high temperature, high corrosion and so on. Due to the high activity and high dispersion, it even can make to be fibroid magnesium oxide, and it is easy to compound with high polymer or other materials. This kind of composite material has good microwave absorbing property. At the same time, it won’t decrease the indexes of raw material’s strength, tenacity and so on. What’s more, it has strengthening action to add fibroid magnesium oxide. In order to gain high quality nanophase ceramics, the superfine magnesium oxide powder can be used as sintering aids and stabilizer of zirconia, aluminium oxide, ferric oxide and other nano particles. In addition, because of the dispersibility, this kind of superfine magnesium oxide can be used as the padding of oil paint, paper and cosmetic, the filler and fortifier of plastics and rubber, and the auxiliary materials of various of electronic materials. As a professional magnesium oxide manufacturer, the MgO produced by Meishen Technology has a good quality and widely applications.

Environmental Protection Pressure Limits Development of Magnesium Oxide

   This year is an important year for our country to strengthen environment protection. In order to weed out the backward environmental protection technology and facilities, it will take many measures, for example, suspend operation. Through practical action to make magnesium oxide manufacturers to strengthen the consciousness, and promote new environmental protection technologies. Under the situation of strictly control environmental protection, the magnesium oxide suppliers and manufacturers are facing great environmental pressure. A group of crack troops and brilliant generals is expected to stand out with strong sense of environmental protection and perfected handle the facilities.

   In the past two years, a large number of magnesium oxide manufacturers halt production gradually because of the backward environmental protection technology and facilities. From some pollution hidden enterprises can see that these enterprises must be transformed. In order to walk to sustainable development, these enterprises should weed out the backward environmental protection technology and facilities, strengthen safety and environmental awareness, and take the way of clean and green. At present, Meishen Technology has already adopted proprietary technology and implemented zero discharge for the waste water. This kind of environmental advanced technology should be generalized and popularized in this industry.

   In this low confused chemical market, most of magnesium oxide manufacturers are facing many predicaments: market was squeezed, continuous running of high cost, etc. Because the product relative to a single, the industrial chain is fairly short, the downstream has no auxiliary product and the products are in overstocking. At present, the magnesium oxide enterprises in some areas are still in shut-down state. Only the large enterprises are in regular production, for instance, Meishen Technology.

   At present, in order to overcome the bottlenecks and decrease market risks, Meishen Technology extends industrial chain actively, optimize product mix and extend terminal market: extending the single magnesium oxide to terminal fine dye. This is an effective attempt of magnesium oxide manufacturers’ transformation and upgrading.

   In addition, in order to deal with the developing dilemma, various attempts have been made by this magnesium oxide suppliers and manufacturers, such as floatation of shares, equity financing and others. These all provide the way of thinking to enterprises. 

Optimistic Outlook of Magnesium Oxide Manufacturer

   As a whole, the global magnesium oxide market has no obvious shortage of supply. Since 1990, any rise in price did not leaded by accelerated market requirement. Recently, the magnesium oxide’s price is increasing. However, the primary cause of this time is that the domestic magnesium oxide manufacture reduced capacity in the last year. It leaded the market has sense of hunger in the short run. In addition, there are some other causes to boost magnesium oxide’s price: appreciation of the RMB, the limit production of domestic and foreign magnesium oxide manufacturers, rising cost of raw materials, rising cost of environmental protection and others.

   Therefore, Meishen Technology thinks that the price of magnesium oxide is likely to remain high in short time. Except for the high pure magnesium oxide, the living space of most magnesium oxide manufacturers and medical intermediates get profit margin through low price of environmental protection cost and labor cost.

   The large-scale magnesium oxide business was pushed into a growing passageway by broad market space, the integration and expansion of industry, the improvement of enterprise profitability analysis and industrial policies. The orientation of magnesium oxide suppliers and manufacturers gradual change to “channel service provider” from “hamal”. What’s more, the profit model of it will change to provide more add value service from the simple price parities between the wholesale and retail trades. After improving efficiency of service and increasing class of service, the trade value of magnesium oxide production and marketing channel was improved a lot. After the industry's profitability return normal, there are some factors to improve the profitability of magnesium oxide suppliers, these factors are gross margins, scale effect and efficiency of operation. In addition, this tendency is irreversible.

   The supply and manufacture of magnesium oxide will move to oligopoly. The enhancement of produce concentration degree increases enterprises’ bargaining power. At the same time, in the magnesium oxide industry chain, the enhancement of production and marketing business’ concentration ratio in the middle will be faster than the upstream and down stream businesses. Extending the industrial chain of upstream and downstream can improve the position and profitability and take full advantage of existing channel resource. 

How to Evaluate the Price Increase?

   From introduce to independent research and development, magnesium oxide has been the main force in new type chemical market just a few years. At present, it has developed a large industry from a small breed. Looking back, after opening the magnesium oxide’s mysterious, the market price positioning of magnesium oxide is always the bone of contention in the industry. At present, magnesium oxide market is stalling contradictory deadlock. From a marketing point of view, the market price of civilians is an interest good news for customers. From a magnesium oxide manufacturer point of view, with the increasing of production cost, "one size fits all" price brings troubles to manufacturers and suppliers. Reducing price blindly will bring that the product quality is so hard to guaranteed, and the contradiction between production and marketing will be aggravated. Therefore, how to evaluate the price increase?

   The price trend of magnesium oxide is according to the law of development. As the market competition becomes more and more intensifying, magnesium oxide’s price is dropping to reasonable range little bu little. Although price fall create certain pressure to enterprises, the sales volume of magnesium oxide is rising with the increasing market acceptance. On the whole, economic benefit of magnesium oxide manufacturers. In addition to grow stronger and larger, it should reduce any intermediate links and reduce circulation costs. What’s more, it is also a positive promotion model in the development of market.

   In the last few years, the price of magnesium oxide has really been declined. In order to follow the developing trend of times actively, as a professional magnesium oxide manufacturer, Meishen Technology has already plan the solutions. In addition to focus on select raw material, this magnesium oxide manufacturer guarantees the magnesium oxide quality. In the first place, they has improved production technique and select some alternative material to replace scarcity raw material. Therefore, it can reduce cost of production. In the second place, they set up factories in the national multiple districts and use the mode of multi-plants supply. It can reduce logistics cost. In addition, it is one of methods to reduce magnesium oxide price.