The Increasingly Magnesium Oxide Market Concentration
Because the small-scale magnesium oxide manufacturers have limited investment and technological level in environmental protection respect, there are always substandard in environmental protection in the process of production. It brings large pressure to the environmental protection. Expert believed, with the increasingly labor cost, transportation cost and finished cost, under the intensive of market competition, the market concentration will be go on decreased slowly. However, the promotion of high-end oriented is one of the methods to relieve this phenomenon. It is estimated that a large number of low-end magnesium oxide magnesium oxide manufacturers will be weeded out the market, these manufacturers did not meet the conditions. Therefore, the market concentration will be improved gradually.
In the last few years, the magnesium oxide industry were filled environmental protection and reorganization. The check of environmental protection is strict, and happens all of the time. In order reply it, most magnesium oxide suppliers and manufacturers have to reduce operating rate. The environmental protection has a great influence on the magnesium oxide industry. In this subtle market, there is no doubt that it is a further stinging blow. And the message of environment protective reorganization is still in spreading all over the country, a lot of low-end magnesium oxide manufacturers was forced to be closed. Among it, the most stricken is the areas which are famous for processing magnesium oxide. So, the market was badly hurt.
At present, the most of magnesium oxide suppliers and manufacturers is small business or low-end magnesium oxide. There are some characteristics in magnesium oxide industry: numerous enterprises, the average size is related small, and the market concentration is related low. It is bad for using resources scale and intensification. However, at present, several focused market with grand scale are also reorganized. In connection with this, Meishen Technology accelerates the step of upgrading and transformation, and reforms the making process equipment. It becomes the only bright spot in this environmental attacking battle. What’s more, this magnesium oxide supplier and manufacturer occupies 90 percent of high and mid grade magnesium oxide market in domestic. It is also one of the three major production bases of magnesium oxide in the world.