First quarter 2020 magnesia market review: what happened from the outbreak to the controlled magnesia market?

During the Spring Festival in 2020, covid-19 epidemic quickly swept across the country. In order to better fight against the epidemic, the state and other regions introduced measures to fight the epidemic with the whole people. Enterprises delayed the resumption of work, closed roads in villages, and tried to avoid going out... The outbreak was finally brought under control in late march, but by then the outbreak abroad had begun to bite and the situation was grim. What happened to magnesia companies and the magnesia market during this period?

The spread in China, there are several magnesia large enterprises to stop production during the Spring Festival, has been in production status, most enterprises is off production status, the resistance to disease, businesses postpone open return to work after the Feb. 10 enterprises can make preparation, on the basis of prevention and control of protection and inspection qualified by the related department to return to work, domestic enterprises gradually ascend, to return to work and production in March in the year to March 25 national small and medium-sized enterprise complex power reached 71.7%. Magnesia enterprise open to return to work conditions as to effectively control the outbreak and gradually improve, but the downstream steel glass cement industry capacity utilization is improved, but demand is difficult to release, magnesia market demand is not ideal, and during the road transportation cost and time are increased, sinter and price is in a downward trend, the company sales situation.

Magnesia market in liaoning province today, because of excess production capacity, large inventory, demand, coupled with the outbreak affect trade import and export market, the price of some products quotation is close to early 2017, but over the past few years companies investing in environmental protection, raw materials, labor costs also growing, even in the short term magnesia as weak market, but the decline range or limited, unless the enterprise have a new breakthrough in the field of raw materials, may reduce sinter cost again. Magnesia prices surged from 2017 began to experience in the rational, basic is in a state of decline, the current is at its cost, the profit space is narrow, enterprise is facing the severe test, at the time of magnesia prices straight up, some small companies emerge in endlessly, now the price decline, old, small business is hard to bear also the exit the market gradually, perhaps 2020 magnesia market will attract a new pattern.

The start of environmental inspections in anshan, yingkou and liaoyang in liaoning province in April could support magnesia prices. In early 2020, there are also a lot of policies to promote the development of magnesite industry, which may boost the magnesite market. To promote the structural adjustment, transformation and upgrading of magnesite industry, has been included in the liaoning province "heavy, strong and grasping" special action plan in 2020, and the magnesite industry may usher in a new pattern.