First, High-purity magnesium oxide industry chain
Magnesium oxide is a kind of inorganic compound, white solid at room temperature. High purity magnesium oxide refers to the purity of 98% or more magnesium oxide, which has excellent alkali resistance and electrical insulation at high temperatures, and has good light transmittance, and can often be used as a high temperature heat-resistant materials.
According to the “ China High Purity Magnesium Oxide Industry Status Quo Depth Analysis and Future Prospects Research Report (2024-2031) ” released by GuanResearchNews.com, from the industry chain, China’s high purity magnesium oxide upstream for magnesite, dolomite ore and other raw materials; the middle reaches for the production of high purity magnesium oxide; the downstream for the application field, which is widely used in the industries of silicon steel, food, medicine, ceramics and refractory materials.
Second, high purity magnesium oxide upstream
Magnesite, dolomite ore is the main raw material for the production of high-purity magnesium oxide in China, its reserves are rich, supply is sufficient, for the production of high-purity magnesium oxide in China provides an important guarantee. Specifically, magnesite is one of China’s advantageous mineral resources, and its reserves, production and export volume all rank first in the world. According to statistics, in 2021, China’s magnesite reserves amounted to about 3.6 billion tons, accounting for 29% of the total global magnesite reserves; in terms of production, in 2022, China’s magnesite production reached 17 million tons, accounting for 63% of the world’s total production; from the export point of view, in recent years, China’s magnesite exports have expanded rapidly, reaching 2.711 million tons in 2022, a year-on-year increase of 137.7%. In addition, China’s dolomite ore reserves are equally rich, with reserves of more than 4 billion tons, mainly distributed in Shanxi, Liaoning, Shaanxi, Hebei and other provinces, which is sufficient to meet the needs of high-purity magnesium oxide production.
Third, high purity magnesium oxide midstream situation
1. China’s high purity magnesium oxide market is in a state of oversupply
In recent years, the downstream development of China’s high purity magnesium oxide has been good, promoting the continuous expansion of high purity magnesium oxide production and consumption. Data show that its production has grown from 51,300 tons in 2017 to 76,100 tons in 2022; the demand has grown from 67,500 tons to 99,100 tons.
Although China is the world’s largest magnesium oxide producer, but the volume production of high-purity magnesium oxide is small, the market is in a state of oversupply, and part of the demand still needs to rely on imports to supplement. Data show that since 2018, China’s high purity magnesium oxide supply and demand gap has always remained above 20,000 tons; and since 2020, its supply and demand gap is gradually expanding, from 20,900 tons to 23,000 tons.
2. China’s high-purity magnesium oxide market size continues to expand
In recent years, China’s high-purity magnesium oxide market size continues to expand. Data show that in 2022, China’s high-purity magnesium oxide market size reached 1.584 billion yuan, an increase of 4.49%. However, compared with other magnesium oxide products, at present China’s high purity magnesium oxide market size is still relatively small, accounting for less than 7% of the magnesium oxide market, there is still a large upside.
Fourth, high purity magnesium oxide downstream situation
It is understood that at present, high-purity magnesium oxide is mainly used in the production of fireproof materials and silicon steel. In recent years, China’s fireproof material production shows first growth and decline trend, but the decline is not big, the output always stays above 23 million tons; while China’s silicon production shows a growing trend, from 10,161,400 tons in 2018 to 15,746,000 tons in 2022, and its production growth rate is always greater than the growth rate of fireproof material production. Overall, China’s downstream demand for high purity magnesium oxide downstream is good, thus driving the continuous development of high purity magnesium oxide industry. In addition, with the progress of high purity magnesium oxide production technology and the use of continuous development, its application areas will continue to expand, which will also benefit the development of China’s high purity magnesium oxide industry.