Affected by the epidemic, Hebei Messi Biology Co., Ltd. believes that the new normal of the magnesium oxide industry in 2022 is mainly reflected in the following three aspects:
First, overcapacity. In the past, the production of magnesium oxide in China was not enough to meet the industrial demand, so it was necessary to import a large amount of magnesium oxide from abroad. However, in the 21st century, China’s magnesium oxide has entered a stage of great development, especially in recent years, Qinghai, Liaoning and other areas with resources to build a large number of magnesium oxide plant, China’s magnesium oxide serious overcapacity.
Second, export has an increasing impact on the market. Due to the serious excess capacity of domestic magnesium oxide, to digest the excess capacity, export has become the inevitable choice, export factors on the impact of the magnesium oxide market is growing. If the international market is good and the export volume is large, then the domestic market may go well; conversely, if the international market is bad, or because of high tariffs and other reasons, the export can not go out, they are crowded into the domestic market competition, the domestic market is unlikely to improve.
Third, magnesium oxide demand growth rate slowdown, there may be zero growth or decline. The demand for magnesium oxide has been far away from the high growth era in the past. With the improvement of the industrial level and the promotion of urbanization, the speed of industrial transformation and upgrading has been accelerated. The growth rate of demand for magnesium oxide will slow down significantly in the future, in some places there will be zero growth or even a decline. The MGO industry urgently needs to transform and upgrade, speed up high-end mgo r & D and production, create a high-precision mgo corporate image.