After entering 2018, the information of rising magnesium oxide price emerges in endlessly. Especially the February, the magnesium oxide manufacturers make announcements about rising price at home and abroad. It can be known from PPI published by State Statistics Bureau in February, 2018.
We originally thought that the price surge should be slowly after entering March. As the matter of fact, all of the magnesium oxide, magnesium carbonate, magnesium sulfate and other products is rising price. At present, just some raw material and products are rising price and can not stop. According to previous experience, most of them will rise price latterly.
The reason why magnesium oxide industry often rises price is that the rising price of raw material, environmental protection and others. Facing the rising price from large chemical enterprises, many enterprises, which is the middle and the down stream of industrial, are feeling huge pressures. Some backward enterprises even go into liquidation because they can not afford production cost pressure. In the later stage, maybe the rising price wave will lead to close down wave.
On the other hand, the rising magnesium oxide price wave is beneficial to market clearing. Closing down the backward enterprises with severe contamination and high high energy consumption can improve the ability of environmental protection and cost advantage. At the same time, it also make some small enterprises without cost transferable ability exit market.