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Price Of Magnesia Market Rose A Lot
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On Sep. 14, the fused magnesite (magnesium oxide≥98%) can be offered from RMB 9330 to RMB 9430 yuan per ton. Compared with the day before, it increases by 3.32%. The fused magnesite price rises continuously for 4 days. The accumulative total amount of increase achieves 44.4%. Many magnesia factories are shut down largely, the lack of supply promotes fused magnesite price rose a lot.
After entering the environmental supervision, the infrequent high quality mineral leads to bad quality of fused magnesite. However, because of the large demand, it still behinds the requirement.
Meishen thinks, this rising magnesite price is a trending market, but not the periodicity. The core logic is the promoted strategic position from government to magnesium industry. Even the magnesite exploit will be opened in the future, the total quantity would be controlled obviously. This supply side reform benefits to improve magnesium oxide industry structure. In addition, because the profit of steel, cement, glass and other downstream industries improved a lot, it has larger demands for refractory matters. The leading enterprises’ profit ability has already surpass the same enterprises in this industry.
At present, the magnesia industry is full of challenges. Government required to forbid illicit mining. Therefore, it is a problem when can back on track for the magnesite supply. It is anticipated magnesia price will rise a lot after the Spring Festival.
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