According to our analysis, magnesium oxide industry supply side reforms to capacity in the past two years has achieved initial success, the existing production capacity has lagged behind all discontinued or closed, the relative balance of total output and total sales in 2016, the market supply is relatively tight inventory caused by low.
Magnesium Oxide's global market in 2016 general oversupply in the market, the low price makes many producers are not enough to obtain adequate return, some manufacturers take part, reduce the production factories shut down in response to the weakness in the market, it is in the global Magnesium Oxide industry by reducing production rate and inventory to match the market environment.
With the improvement of Magnesium Oxide's quality and the transformation of business philosophy and management mode, the share of Magnesium Oxide in the international market is increasing year by year. In 2016, China's export volume reached a record high. For China's Magnesium Oxide industry, the supply side reform in 2017 is the key year. After 2016, the market price has gradually become a reasonable upward period. The industry must face the market changes calmly.
During the Magnesium Oxide uplink cycle in 2016, it was remarkable for magnesium mineral resources. Global shortage, price rises. Take the domestic magnesite as an example, the price rises above. Magnesite has become a booster for Magnesium Oxide's rising prices. People believe that can be used for the production of Magnesium Oxide's long-term resource shortage, the booster would be awesome and awesome. This view still supports the confidence of the enterprises in the industry, and is also an important perplexity factor for people to deviate from the market.
In the past few years, the global Magnesium Oxide dropped into the downlink, which is precisely the result of serious overcapacity, and the global Magnesium Oxide has begun to stock up. Taking history as an example, we are facing the same problem in 2017. It is the key for our Magnesium Oxide industry to go up to go to capacity, improve quality, produce differentiated products and aim at high-end products in the international market.