According to the latest news, under the pressure of the supervision of the Environmental Protection Agency, the Northeast chemical companies were required to stop operations and rectification, and many magnesium oxide production enterprises in the region were also forced to stop production. Northeast China is an important base for domestic magnesium oxide production. This will inevitably have a certain impact on the supply and demand of the upstream and downstream of the magnesium oxide industrial chain, for example, the lasted market price has show rising phenomenon.
According to statistics, due to the severe environmental protection and limited work, there are more than 40% magnesium oxide industry has actually shut down and partially shut down. With the continuous deepening of supply-side reforms and the further improvement of industry entry barriers, small-scale magnesium oxide producers will continue to phase out. In the next 3-5 years, it is expected that the merger and reorganization of magnesium oxide industry will further accelerate, and the number of production enterprises will be reduced.
In summary, domestic magnesium oxide producers face product upgrades and break the bottleneck of “homogeneity”. While producing high-quality and specialized products, it is the key to enterprise marketing to identify competent channel providers.