Magnesium Oxide Transform From Seller to Buyer Market

by Allen Hu magnesium oxide supplier

Magnesium oxide industry admittance threshold is high, therefore, in the past requirements, the upstream has strong bargaining power. In recent years, a large amount of magnesium oxide suppliers put into production, upstream companies and raw material structure increasingly diversified, gradually to break the monopoly competition. Especially with the China’s slowing economic growth, magnesium oxide demand slowdown becomes the new normal.

At present, the magnesium oxide production industry is in the stage of reduced profits, which the supply is rapid increase and the demand grow slowdown. The increase in supply will continue down the new material price, and continuous extrusion feed back market share. Downstream bargaining power increase apparently, upstream production enterprise profits will be compressed further, the chemical industry gradually transformed into the buyer’s market. Though raw material prices down, but the terminal demand growth, the middle and lower reaches of enterprises especially traders profit will be markedly reduced.

Recently, in order to further enhance the safety awareness of magnesium oxide production personnel and self-protection awareness, improve the management level of enterprise safety in production, Meishen Technology conduct the safety production training. Enterprises from the relevant people in charge, to the front-line staff have participated in training.

In view of the above situation, the leader of Meishen Technology said, traditional trader’s survival and the profit space are compressed, some enterprises has been forced to withdraw from the market this year. Current earnings is more and more difficult, traditional model of the past is zero profit or small profit, even faces the downstream factory default and the risk of bankruptcy.

At the scene of the training, magnesium oxide safety technology experts combine recent typical safety production accident cases around, publicize the importance of good work safety in production, emphasizes that chemical industry overlooked defense work could endanger the lives and health and other hazards. The training mainly includes transformation of consciousness, responsibility, ability to enhance other aspects, and for the safety of the premise, the core and guarantee were classified Interpretation.

Through this training, Meishen Technology further improved the safety production consciousness of responsible persons of enterprises, enhanced the employees ability of standardized operation, further ensure the employees’ life, health and safety as well as enterprise safe production situation are stable.