With the construction of multiple production facilities of Hebei Messi Biology Co., Ltd. and the expansion of production of some other enterprises, my country has become a major magnesium oxide producer in the world. While the production capacity is growing rapidly, the magnesium oxide industry is also facing a reshuffle. Magnesium oxide is an important fine chemical intermediate, widely used in pharmaceutical food, rubber, chemical additives and other fields. Its most important downstream consumer product is rubber products, accounting for more than 50% of the total consumption, playing a pivotal role in the international market.
The pace of magnesium oxide exports must be accelerated, and there is still room for development in the international market demand potential. In terms of exports, we should start from two aspects: first, actively expand foreign customers who purchase magnesium oxide to balance domestic market demand. In recent years, foreign demand for magnesium oxide has grown steadily, China has gradually become the main force in the international market, and orders purchased from China are also increasing. Therefore, continuing to expand international demand is the main task of enterprises this year. The second is to use exports to directly drive the domestic magnesium oxide market and digest excess production capacity. It shows that magnesium oxide still needs to increase its development efforts in the international market to expand greater export space.
The comprehensive operating rate of domestic magnesium oxide manufacturers is not high. In addition to market factors such as the inability to increase sales prices, the rapid expansion of production capacity and the inability of downstream demand to keep up are still the main reasons why enterprises cannot effectively increase their operating rates. In addition, because magnesium oxide is a chemical product, enterprises have strict environmental protection production controls, which has led to the suspension of production of some domestic manufacturers, and regional imbalances have reappeared. Domestic production enterprises will face the test of reshuffle in the future.
With the development and popularization of the low-carbon economy, corporate products should be transformed into clean processes, and high-quality products should be produced to enter the high-end market. Magnesium oxide is used in the pharmaceutical and food industries, and more attention should be paid to improving the grade of products, changing the impression that foreign customers previously classified Chinese magnesium oxide products as low-end products. Only by improving quality and developing high-quality products for high-end dyes can enterprises change the situation of being big but not strong.