In the aspect of production:
- The production place of magnesium oxide is mainly in Hebei, Shandong, Liaoning Province and other areas. The magnesium oxide output in these area accounts for about 90% of Chinese total production. In recent years, the cost of raw material is rising. Therefore, the production cost, which uses magnesium ore as main war material, is inevitably adding with the rising raw material cost. What’s more, the price of auxiliary productive resources is rising. And the price of energy motivation and energy medium is rising as well.
2. The increasing administration expense: with the demand for magnesium oxide quality from users and the living needs from magnesium oxide manufacturers, in order to make sure the magnesium oxide capacity and quality, it needs stable manufacturing technique and production equipment. Therefore, the investments of quality testing and equipment operation are accounted in the production cost. In recent years, each major magnesium oxide manufacturer and supplier invest a large amount of capital in the aspect of quality testing, equipment upgrading. The workers’ salary, social benefits, insurance and other social security system also add the expenditure.
3. Environmental protection and control. Some places developed their economy at the expense of the environment. For these places, the government gave an ultimatum. Magnesium oxide manufacturers invest a large amount of capital to work on it. It is a fine thing. However, the operation cost of environmental equipment should be accounted in magnesium oxide price.
In the aspect of market:
- The food producers are increasing. It still can not satisfy the needs for food from people. It is decided by rising living standards. In addition, this needs will be stronger and stronger.
2. The medicine and health care products manufacturers are increasing, variety yield is increasing. Even though, it still can not meet the requirements for medicine and health care products. It is also decided by high cost of living standard and medical cost. What’s more, this kind of requirements won’t reduce for the near term.
3. With the growing products, as a kind of annexing agent, magnesium oxide’s applications are also continuously extending. In addition, the magnesium oxide price and additive price are out of proportion. In the other word, the original magnesium oxide price is relatively low.
In conclusion: the magnesium oxide price will rise not long after.
Author: magnesiumkingThis author has published 95 articles so far. More info about the author is coming soon.