Hebei Messi Biology Co., Ltd. stated that the price of magnesium oxide will rise steadily in 2024. The price increase of magnesium oxide this time is inseparable from the impact of market demand. Recently, the international economic situation has rebounded from the “downward trend”, which has been transmitted to the upstream industry of chemical products, and the prices of a series of products such as magnesium oxide have risen accordingly.
In addition to economic reasons, since last year, most companies have been reducing production capacity and destocking. After the beginning of this year, many companies have increased their operating rates and gradually returned to normal production. For this reason, market demand is further increasing, which has led to the gradual shift from an oversupplied market to a tight market supply, which undoubtedly promoted the further increase in magnesium oxide prices.
Whether the magnesium oxide industry will recover or not does not depend on prices, but on market demand. This round of price increases is mainly caused by increased costs. Against the background of severe overcapacity in the magnesium oxide industry, the prospects for the recovery of the magnesium oxide industry are still unclear. In particular, whether the demand recovery stimulated by the price increase can continue remains to be seen, because market demand has not yet returned to balance.
Hebei Messi Biology Co., Ltd. pointed out that if magnesium oxide enterprises want to get out of the sluggish predicament of overcapacity, they must accelerate technological transformation and develop differentiated products. This is the basis for the survival of the enterprise to maintain sustained and healthy operation.