The price of magnesium oxide continue to rise because many factors, such as the lower supply, demand steadily, the changed mind of traders and so on. The specialist of China Inorganic Salt Industry Association magnesium compound believes, “In the future, the price of magnesium oxide will be in the high position. Its price is expected to keep rising continuously.” Therefore, the related magnesium oxide supplier will benefit from the rising price.
In the near future, the price of magnesium oxide is rising gradually. The specialist of China Inorganic Salt Industry Association magnesium compound thinks, “The main cause of magnesium oxide price rising is the exploding cost of material and the shortage of upstream resources.
Due to the situation of raw material supply tensions can not be changed in the short term, the high price of raw material is also hard to shake. Affected by high price of raw material, tight purchase and so on, magnesium oxide supplier’s operate condition also be effected. At the same time, because of a few inventory, these manufacturers control the tempo of send out goods. These factors lead to tight supply in magnesium oxide market. Looking market outlook, it is difficult to further rise for the price and pass on costs. The downstream enterprises’ rate of operation is not high. What’s more, it is difficult to bear these high price. Therefore, the magnesia’s purchase quantity is reducing.
Magnesium oxide belongs to energy intensive products. In the production process, it has a larger power consumption. Because of the ration the power supply and production limitation, the several producing areas, such as the Northwest, East China and so on, has a lower rate of operation.