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The reasons for the increase in domestic magnesia prices are as follows:
1. The year-by-year reduction in resources is the main factor affecting magnesia prices. For example, the production of fused magnesia requires the selection of special-grade, first-grade magnesia, but after nearly a hundred years of exploitation, the reserves of high-quality magnesite have declined, making mining difficult.
2 Continuously pressurizing environmental protection policies. Most of the magnesia enterprises in Liaoning Province are currently in the state of stopping the kiln. The control of explosives will be controlled. In the heating season in the second half of 2017, the government will continue to increase its environmental protection efforts. Since January 1st, 2018, Haicheng City issued a notice against the illegal mining of magnesium industry, undoubtedly worse
3 Government strategy upgrade. The Liaoning Provincial Government has enhanced its strategic position in the magnesium industry. Even if magnesite mining is released in the future, the total amount will be obviously controlled.
4. It is difficult for small businesses to survive. With the country's capacity reduction, production restriction, and the introduction of a series of government policies, small-scale enterprises are limited and the possibility of resumption of production is small.
5. Natural gas shortage. Since 2017, an industrial upsurge of coal-to-gas has been set up throughout the country. Since the third quarter of 2017, there has been a serious shortage of domestic natural gas, which has caused its price to be sent. The factors directly affect the price of sintered magnesia
6. Global market. The domestic magnesia tension has jointly affected the overseas magnesia market. Magnesium sands of major international magnesium companies are now mainly used for their own use. Brazil’s magnesium industry, which previously supplied US sands to the Chinese market, has stated that it cannot add new customers. Another Australia, which is a big magnesite country, is not optimistic. It indicates that there is no Extra amount. In addition, Japanese seawater magnesia, Mexican magnesia, and Dutch magnesia are all the same.
7 The price of graphite electrodes rose. The price of graphite electrodes soared at the end of 2017, and its price rise with fused magnesia has undoubtedly played a role in fueling the industry.
Magnesite is an important raw material for magnesia refractories. Magnesia products are mostly produced by sintering. The firing temperature is generally between 1500 and 1800C. In addition, chemically bonded yttrium can also be added to make unfired bricks and unshaped refractories. Magnesium refractories have a wide range of applications. Can be used for open hearth furnace, electric furnace, oxidation converter, non-ferrous metal smelting furnace, cement kiln and calcining kiln of basic refractories. In the fields of metallurgy and building materials, there are irreplaceable important positions. Therefore, for the current status of domestic magnesia, refractories and steel industry are extremely concerned. At present, the pressure is greatest on product companies, especially magnesium products such as magnesium bricks and magnesium carbon bricks. Downstream iron and steel metallurgical enterprises have been pressing costs and controlling energy consumption. As a result, the purchase price of magnesia bricks, magnesia carbon bricks and other products is far from the price increase of raw materials, and some product companies have stopped production due to soaring raw materials.
After the holiday, with the end of the heating season, the natural gas gas shortage is gradually being solved, and the government's constant control, the price of low-grade magnesia will drop slightly. As for the high-grade magnesia market, we still need to wait and see. Market tension and price drop will be difficult to solve in a short time. Under the government's series of policies, market regulation, purification of low-grade magnesite, and development and application of alternative minerals are fundamental solutions to the problem.