Looking back at the past ten years, it is the fastest ten years for magnesium oxide industry in China. Magnesium oxide industry in our country developed many years, especially recent ten years. The design and manufacture of magnesium oxide equipment have been reached the world advanced level. Capacity and output of magnesium oxide are the highest in the world. These meet the requirements in downstream industries.
At the meantime, Chinese magnesium oxide industrial distribution become more reasonable. As an important raw material for chemical products, Chinese magnesium oxide enterprises located mainly in producing and industry developed regions. It proves that the capacity layout of Chinese magnesium oxide is more scientific and reasonable. The industrial concentration is increasing gradually.
However, Chinese magnesium oxide’s products is too much to trouble this industry development. The market of magnesium oxide is in the state of oversupply for a long time, little cheap imported magnesium oxide hit the market. Magnesium oxide is in a low price, it reduces single enterprises’ profit, they can’t develop new products and reduce pollution. In the future, China is still building several large projects about magnesium oxide. So, the excess capacity of magnesium oxide is the most critical question in this industry at present.
The economic development in our country have been in the state of ‘New Normal’. Economic development mode is turning to the type of quality and efficiency from the type of speed. The economic structure is turning to based on high quality production from based on production enlargement. The dynamic of economic development is to turn a new increase point from a tradition increase point. The magnesium oxide industry is a typical basic chemical industry, the downstream industries such as rubber and dye are related in the lifeline of national economy. Therefore, our country’s growth can reflect the demand growth of downstream industries. In previous decades, with China’s rapid economic growth, magnesium oxide equipment have already boomed across the country. But our economy enters a shift of growth, the downstream industries’ demand become slow, magnesium oxide industry enters a difficult adjustment period.
So look at the industry present situation, during 13th Five Year Plan,magnesium oxide industry are facing many challenges. At the first, how to eliminate excess capacity, return to life and improve the profit ability? Secondly, how to make new products to adjust new demands and improve the consumption of magnesium? At the meantime, we are facing some problems about cleaner production and the hit from import magnesium oxide.