Market outlook for fused magnesia market

1. In the case of overcapacity in the steel, cement, glass and other industries, the fused magnesia industry will inevitably have a situation of overall overcapacity. In recent years, the country has strictly controlled production capacity. From this point of view, domestic new production lines will be strictly controlled, and the number of refractory materials used will decline if the kiln is overhauled alone. From an international perspective, in addition to India's new capacity, the possibility of new capacity in other countries is very small. 97 fused magnesia

2. With the improvement of various technologies, downstream users' requirements for refractory materials have gradually increased, requiring an increase in service life while reducing tonnage consumption, so that the consumption of refractory materials has shown a downward trend.

3. Product recycling is gradually being promoted. Recycled fused magnesia has no obvious disadvantages in terms of performance, and the price is relatively low. Under the current market situation, in order to reduce procurement costs, the purchase of magnesia by enterprises will shrink.

In the second quarter, fused magnesia products finally couldn't help the destruction of the market and were forced to choose to lower their quotations to meet market demand. The current company quotation in Liaoning area is 1700-2000 yuan/ton for 96 ordinary fused magnesia blocks, 2400-2600 yuan/ton for auxiliary 97 ordinary fused magnesia blocks, 2650-2800 yuan for auxiliary 98 ordinary fused magnesia blocks /Ton (factory including tax).

The company said that the current market is very bleak, fused magnesia products are severely unsalable, and price reductions are compelling. Enterprises are restricted by many factors such as bank loans, employee employment, government indicators, etc. Even if they lose money, they cannot stop production. Therefore, they can only maintain business operations by reducing prices. However, after a series of measures such as price decline and production capacity reduction have been tried, downstream buyers did not buy it, and almost all production companies appeared inventory. Although companies also communicate the next development direction, demand is still "internal injury", and there is no obvious rebound in the short term. Furthermore, the country's requirements for environmental protection are increasing day by day, some backward companies are facing the danger of being eliminated, and the market fluctuates greatly. Many companies wait and see to avoid risks.