In the future, the growth of magnesium oxide capacity will be slow down. Aim at the Chinese magnesium oxide industry’s development situation, the magnesium oxide become one of the intensive control targets in the relevant document published by government. Especially the notifications published by National Development and Reform Commission, it publishes further strict rules about the examination and approval administration of magnesium oxide projects.
What’s more, in the future, it is limited to increase the magnesium oxide project which only enlarges production capacity. The capacity increases of magnesium oxide is mainly from the high-end magnesium oxide projects or some renovation projects of raw material structure. According to the development projects under construction at present, and given to some closed backward capacity, the newly increased capacity is mainly from the field of high-end magnesium oxide.
Over the next few years, the high-end magnesium oxide demonstration project will go into operation one after another. It will drive to promote the operating rate of magnesium oxide industry to a great extent. In addition, this industry is weeding out the backward enterprises, upgrading the technology and adjusting construction. Its competitive power has been significantly enhanced. It is estimated that the operating rate level of magnesium oxide industry will be further promoted after 2020. By that moment, the contradiction excess capacity periodicity will be alleviated.