At present, the industrial concentration of magnesium oxide is lower, and the high end market has been occupied by the foreign imported product. Therefore, the Chinese magnesium oxide industry is a typical competitive market structure.
The competitiveness of local investment focus on the middle and low-end market, and the high end magnesium oxide products mainly relays on the foreign invested enterprises and imported. At present, the most of domestic magnesium oxide suppliers and manufacturers’ capacity concentrates upon the production of low-end magnesium oxide. Among them, it is a price war. The product profit is low, and the average investment of R&D is less then one percent of saleroom. However, in the high end magnesium oxide product fields, it mainly depends on foreign capital or imported in the fields of aerospace, silicon steel, electron, medicine, food and others.
With the increasingly high requirements from upriver main market to magnesium oxide quality, service, price and others, it gradually adopts the method of invite tenders centralized and unified. The magnesium oxide market requirement gradually gathers toward large-scale enterprises. A large number of middle and small-sized enterprises will be weeded out by market, these middle and small-sized enterprises have low technical content, backward management thoughts and poor product quality. Now, mergers and acquisitions, asset restructuring had already been a developmental tendency in magnesium oxide industry.
In this kind of tendency, as a Chinese magnesium oxide manufacturer with high market share, Meishen Technology has obvious brand advantage. With the increasingly market concentration, it is favored to win more market share.