MgO Industry is in the Shadow of Cost Pressure
From this year, the price change of magnesium oxide raw material affects the whole magnesium oxide industry. The high price may be rise over the next.
In the situation of raw material price rising, magnesium oxide industry will in the shadow of cost pressure in this year. Capacity and price will be affected by the cost. There is no doubt that sales volume will be affected at price fluctuations. Hebei Meishen Technology Co., Ltd is a professional magnesium oxide supplier and manufacturer. However, the feedback of Meishen Technology’s market researcher is not the case. They said, “as to the terminal, the magnesium oxide market is very severe, but it is nothing to do with rising raw material price.” because the price war is still exist, and is unacted on it. The main cause is excess production capacity.
The market department manager of Meishen, who has rich market experience for more than decade, he reflects, “at present, the market is still saturated condition even decrease by 50%. In such strong competition, why not carry out price war?” Although his opinion is subjective inference, this is true from data.
As the matter of fact, the trend of raw material requirements of magnesium hydroxide is similar to the amplification of magnesium oxide capacity. Rather, magnesium oxide industry leads the tendency of raw material to a certain degree.