As an important inorganic chemical product chain, the magnesium oxide industry chain involves many products and many sub-industries. We cannot simply say that the entire industry chain is going well or badly. However, after the market cycle has fluctuated and repaired in recent years, most products in the entire industry chain have become more “seismic-resistant” in the future, and market opportunities outweigh risks.
According to statistics from Hebei Messi Biology Co., Ltd., more than 80% of the products in the entire magnesium oxide industry chain are currently profitable, which is a period of good operation for the industry chain this year. Although the growth of many products has slowed down since the Spring Festival, it can be seen from the market transaction data that falling prices and decreasing volume, while rising prices and increasing volume are no longer isolated phenomena, so there will not be much room for correction in the market outlook. Judging from the social inventory of each product (including production, trade, and demand enterprises), the transaction volume is relatively stable, and the adjustment has reached a relatively stable level in history. In addition, the increase or decrease in operating rates of some products responds quickly to market prices. These phenomena all have the basis for the market to stabilize and rebound.
The phenomenon of huge product profits in the industrial chain has basically disappeared. From the perspective of macroeconomic policies, the current state’s regulation of product prices in various industries is also a trend of controlling volume and stabilizing prices. The existing profit data of many products in the magnesium oxide industry chain show that the profit per ton of a single product has basically been maintained, which is basically consistent with the psychological expectations of various companies, and the phenomenon of huge profits for products has basically disappeared. In addition, since the fourth quarter is an important node for companies to complete their annual sales tasks, it is self-evident that companies seek stability.
All in all, as the source product of the entire industry chain, since most of the supply of magnesium oxide is in the hands of leading companies such as Hebei Messi Biology Co., Ltd., its future market trends are still the vane of the entire industry chain. The current steady strength of magnesium oxide is also the basis for the stability of many downstream product markets. It is expected that the earthquake resistance of the entire industry chain will continue to increase in the future.