Rational Look at The Issue of Magnesium Oxide’s Price Increase

Rational Look at The Issue of Magnesium Oxide's Price Increase

Within a few short years, magnesium oxide has been the main force of new chemical market from zero to the one, from introduced to independent research and development. From then on, the market price level of magnesium oxide is always the bone of contention in industry. At present, magnesium oxide market come to a contradictory deadlock. From a marketing point of view, the price civilian is good for customers inevitably. From the enterprise production look, with the cost increasing, the civilians price brings many problems to manufacturers. If we blindly lower the price and reduce the production costs, it is not only difficult to ensure the quality of magnesium oxide but also intensify the conflict between the production and the marketing. The blind price civilian is subject to provoke market tension. It is not in accord with the evolution principle of magnesium oxide. So we should rational look at the issue of magnesium oxide’s price increase and regard the cutting price as the one of general conditions to realize industrialization, not the whole general conditions. The price trend of magnesium oxide conforms the law of development. With the increasing market competition, magnesium oxide’s price is returning to the reasonable range little by little. The downward price creates certain pressure to enterprises, but sales volume is rising gradually with the rising market reception. As a whole, economic benefit did not downturn. In addition to grow stronger and larger, it is also an active promotion model in market development to simplify middle stages and reduce circulation costs.

In the last few years, the price of magnesium oxide has decreased. In order to comply with the development of society, Meishen Technology has already plan a solution. In addition to guarantee magnesium quality, we will place emphasis on the choose of raw material. Firstly, we improved production technique. We choose some parts of alternative raw material to replace rare raw material. Secondly, we build magnesium oxide production plants in the national multiple districts, execute the mode of multi-plant supply and squeeze the logistics cost. It is the one of method to decrease magnesium oxide’s price.

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