In recent years, some new policies and market changes have been exerting an impact on China magnesium sulfate industry.
In the face of these influences, Chinese enterprises are also constantly making adjustments. The biggest factor affecting the market in recent years has been the pressure from environmental policies.
Since 2016, the Chinese government has strengthened environmental inspections and no longer tolerated illegal emissions by companies. This makes each enterprise must increase the investment of environmental protection equipment.
For some small and medium-sized enterprises, the capital threshold to improve environmental protection equipment exceeds the capacity of enterprises, leading to some small and medium-sized enterprises to stop production and exit the market. In addition, some companies have limited capacity to dispose of waste, so in order to ensure compliance with emissions, they have to reduce their output to match their disposal capacity.
Some companies are also opting for higher-quality materials to reduce waste production, but this is pushing up their production costs. In the process of rapid development of magnesium sulfate industry in China, some problems have emerged one after another.
In addition, in recent years, the quality of imported magnesium sulfate ore has been declining, leading to the decrease of production efficiency of magnesium sulfate enterprises, and at the same time, it has brought more waste output.
After 2016, China's environmental protection requirements have been significantly strengthened, and the increase of waste has put great pressure on magnesium sulfate enterprises. Some enterprises in some regions have reduced production or temporarily stopped production due to emission problems.
The decrease of the content is generally accompanied by the increase of the content of impurity elements, which also affects the quality of downstream products. Downstream enterprises need to invest more costs in production to eliminate the impact.