A ton of ordinary magnesium oxide is sold several hundred yuan. However, some products from Meishen Technology Co., Ltd can be sold many tens of thousands of yuan a ton. It amounts to hundreds times of ordinary oxide’ price. When many magnesium oxide enterprises struggle with excess production capacity, Meishen Technology Co., Ltd has been the most profitable enterprise in the industry for about ten years. So here we will see the road of transformation and upgrading in Meishen Technology, which is leading magnesium oxide chemical enterprise in China.
Why the products from Meishen can be sold a premium price when market downturn. In this company’s show room, there are full of samples in eyes. The market director said, “the ordinary magnesium oxide was called ‘light calcined powder’ or ‘caustic calcined magnesite’ , it is usually used in the industries like water treatment, cement, desulfurization and so on. The price is about a few hundred yuan, so it has struggled to turn a profit. However, Meishen Technology Co., Ltd focuses on producing high-end magnesium oxide, the price is between thousands and tens of thousands of yuan. These products are often used in the high-end industries, such as medicine, food, silicon-steel and so on. So its added value is high, the profit also can increase. ”
The truth behinds this phenomenon is: the consumption structure of magnesium oxide market has changed. The market need magnesium oxide can be meet higher requirements like green, high purity and nanometer. Only to meet the consumption structure upgrading, can it make product sell higher price. In order to catch up the changes of market requirements,Meishen Technology Co., Ltd takes the blank spot of market as target, adjusts and transforms the research and production chain.
So we should realized that the market did not disappear but changed. It becomes more picky. Under the background of excess production capacity, the living space for the low level becomes narrow, and the high level can win the future. Only the magnesium oxide enterprises can adapt consumer structure upgrade and control the picky market can be the ultimate winner.