Since the fourth quarter of 2022, domestic magnesium carbonate prices have begun to rise. This trend is more obvious during the epidemic lockdown. Magnesium carbonate manufacturers are limited in production capacity due to the epidemic and logistics factors. Recently, well-known international and domestic magnesium carbonate companies have raised prices. Messi Biology stated that it is expected that the price of magnesium carbonate will continue to rise until the end of 2022.
Messi Biology, a domestic magnesium carbonate manufacturer, issued an announcement stating that due to the epidemic logistics restrictions, the company’s product output has decreased and inventory has dropped rapidly; at the same time, the rapid rise in prices of major raw materials and energy has led to a significant increase in product costs. The company said that magnesium carbonate products will be increased by 500 yuan/ton, and by 100 US dollars/ton for various international customers.
Messi Biology‘s price increase this time is due to the impact of the epidemic and the shortage of supply on the sales side. In the process of producing magnesium carbonate, magnesium carbonate manufacturers need to purchase various raw materials such as magnesite, dolomite, and hydromagnesite. Due to the impact of the epidemic on logistics and transportation on the production of magnesium carbonate, and the partial production restrictions and maintenance of raw material suppliers, the factories have not yet recovered, and the magnesium carbonate on the market basically cannot meet the needs of the entire industry.
At present, the price increase of magnesium carbonate enterprises in the world and small domestic magnesium carbonate enterprises is generally due to the tightening demand, and this situation is difficult to change in a short period of time. Messi Biology believes that as 2022 draws to a close, the magnesium carbonate industry will maintain an upward trend in prices.