The sluggish magnesium oxide industry finally ushered in a turnaround at the end of 2021. The rising price of magnesium oxide has brought a warm wind to the entire industry. Hebei Messi Biology Co., Ltd. analyzed that as the price of raw materials continues to rise, the price of magnesium oxide is expected to continue to rise in the future. Under this driving force, the magnesium oxide industry is accelerating its transformation to the high-end market.
Hebei Messi Biology Co., Ltd. predicts that if the price of raw materials continues to rise, there will be another wave of price increases before the Spring Festival, but for magnesium oxide manufacturers themselves, even if the price increases are due to the rise in raw material prices, the profit space is very small. Therefore, many magnesium oxide manufacturers are also stepping up the development of mid-to-high-end products in strategic arrangements.
The transformation of the magnesium oxide industry to the mid-to-high-end market is a general trend, regardless of whether the price of magnesium oxide will continue to be under pressure in the future. In fact, after 2020, the pressure for transformation has already existed, and this transformation is currently underway.
It is understood that there are two trends in this type of transformation: one is the transformation from the function and price of magnesium oxide to the mid-to-high-end; the other is the transformation of categories to refinement. These two points are the most obvious trends at present, and the transformation is relatively successful.
The magnesium oxide industry is still a fully competitive industry. Especially after the impact of Internet brands from 2010 to 2015, a settled competition pattern has been formed, that is, the so-called winner-takes-all pattern has been entered. Some of the major manufacturers have sufficient ability to reduce prices and transform and upgrade, and this transformation and upgrading must exist in a certain sub-industry or field with good performance. These manufacturers launch new brands. Under the condition of the original high market share, it is a general trend to launch a new high-end brand strategy, and most large manufacturers are taking actions in this regard. At present, the effect is also good, which will be a bonus in the next few years.