In the future, the growth of magnesia production capacity will slow down the light burning of magnesia spheres by magnesia sphere manufacturers. In view of the development of domestic magnesia industry, magnesia has become one of the key regulatory objects in the relevant documents issued by the state. In particular, the notice issued by the national development and Reform Commission further tightened the examination and approval management of Magnesium Oxide projects.

In the future, the capacity growth of magnesia projects which only expand production capacity will be limited. The growth of magnesia production capacity mainly comes from high-end magnesia projects and some structural modification projects of natural gas magnesia raw materials. According to the current progress of domestic magnesium oxide projects under construction, and considering the gradual closure of some backward production capacity, the new production capacity mainly comes from the high-end magnesium oxide field.

Demand will grow steadily, phase surplus will ease, and the pattern of phase surplus of magnesia production capacity will continue for a period of time, but the momentum of blind expansion of domestic magnesia production capacity has begun to slow down. At the same time, with the continuous expansion of high-end magnesia field, downstream demand has shown signs of steady growth. Against this background, the Magnesium Oxide industry is expected to experience a steady transition to a better process.

In the next few years, high-end magnesia demonstration projects will be put into operation one after another, which will greatly promote the start-up rate of magnesia industry. In addition, on the premise of eliminating backward magnesium oxide industry, upgrading technology, and taking structural adjustment measures in place, the competitiveness of magnesium oxide can be significantly improved, it is expected that the starting rate of magnesium oxide industry will be further improved after 2020, and the contradiction of periodic overcapacity will be alleviated.