The high price of raw materials supports the rise in magnesium carbonate prices, accounting for 70% of the production cost, and the remaining 30% includes auxiliary materials, packaging costs, and machine wear and tear. In 2024, the market quotation of raw materials increased year-on-year, and the price of magnesium carbonate also rose steadily. The high price of raw materials supports the rise in magnesium carbonate prices. Hebei Messi Biology Co., Ltd. expects that the price of magnesium carbonate will continue to rise next year.
The supply and demand of magnesium carbonate is stable. From the supply side, new production capacity in the magnesium carbonate industry is constantly being released. At present, the demand for magnesium carbonate at home and abroad is large, and the release of production capacity has stabilized the supply and demand of the magnesium carbonate market.
The environmental protection pressure is superimposed on the expansion of leading companies, and the industry concentration is deepening. Affected by the stricter environmental protection supervision and the “coal to gas” policy in the Beijing-Tianjin-Hebei area, the production costs and environmental protection pressures of enterprises have increased, and the backward production capacity of small enterprises has been gradually eliminated. As the gap between enterprises gradually widens, the concentration of the magnesium carbonate industry will further deepen.
Technical talents have become the key to competition, and sufficient technical talents have become an important factor in determining whether products can be differentiated. Therefore, the magnesium carbonate industry is gradually transforming into a technology-intensive industry, and some companies have set up their own research institutes to provide technical support for equipment and products. Hebei Meixi Biological Co., Ltd. said that differentiated magnesium carbonate products with high added value are more favored by the market.
Hebei Messi Biology Co., Ltd. believes that differentiated products are conducive to healthy market competition, stricter environmental protection can make high-quality production capacity stand out, and the rise in raw materials will further drive up the price of magnesium carbonate.