Affected by factors such as stricter environmental safety supervision and increased downward pressure on the chemical industry in 2021, the magnesium oxide industry is facing unprecedented pressure. In this regard, Hebei Meishen Technology Co., Ltd. suggested that magnesium oxide companies should optimize and upgrade the industrial structure, improve environmental protection facilities, strengthen brand building and other efforts, so that the development of the industry can be improved from quantity to quality. According to Sun Wen, chairman of the Magnesium Compound Branch of the China Inorganic Salts Association, the output of magnesium oxide has maintained a steady growth in 2019. In 2020, about several hundred thousand tons of new magnesium oxide production capacity will be released. The contradiction of structural surplus in the industry will still be prominent. Competition will intensify and the level of profitability is worrying.
At the same time, Sun Wen also pointed out that the current structural surplus of magnesium oxide production capacity has not yet been fundamentally reversed, trade frictions have become more severe, environmental protection tasks are arduous, and enterprises’ independent research and development capabilities are still insufficient. Facing the severe industry situation, Hebei Magnesium Technology Co., Ltd. suggested that magnesium oxide enterprises should make efforts from four aspects to truly realize the improvement from quantitative change to qualitative change.
One is the optimization and upgrading of the industrial structure. Many magnesia companies in my country have weak research and development capabilities for high-end products, and their industrial structure is unreasonable, which hinders the development of the industry. Therefore, manufacturers must make a real difference in product quality upgrades, corporate management upgrades, sales and services upgrades, energy and environmental protection upgrades, and product varieties upgrades.
The second is to continuously improve environmental protection facilities. Environmental protection policies related to magnesium oxide are gradually being introduced, and it can be foreseen that the life of small and medium-sized enterprises will become more and more difficult in the future. Therefore, the entire industry must always pay attention to environmental protection policies, continuously improve environmental protection facilities, vigorously promote clean production, optimize the operating quality of environmental protection facilities, and achieve green development.
The third is to attach importance to product brand building. In the future, downstream industries will have higher and higher requirements for magnesium oxide products. Therefore, while paying attention to changes in consumer demand, manufacturers must also strengthen their own brand building and high-quality services to enhance their product market competitiveness. The fourth is to focus on differentiated development with characteristics. With the rapid development of China's magnesium oxide industry, the implementation of an innovation-driven strategy is bound to become an inevitable trend to promote the optimization and upgrading of the industry and move towards the high-end value chain. This requires companies to combine their own characteristics, market demand-oriented, choose their own position, pay attention to the quality of magnesium oxide and the application of magnesium oxide in multiple fields, improve core technology, develop specialty products, and reduce homogenous competition.