Standardize Export Order, Strengthen Mining Planning and Promote Orderly Development of Magnesia Industry

Magnesia is commonly known as light burnt magnesium, heavy burnt magnesium, fused magnesium, high-purity magnesium and other magnesium products. Magnesium products are primary products produced by calcining magnesite. Magnesium products are indispensable refractories in the smelting industry. Due to the long formation period, irreplaceable and non-renewable of magnesia ore, China has implemented the management of tender license for magnesia export since 1994. Liaoning magnesite accounts for 85% of China's total reserves and about 20% of the world's proven reserves.

II. Major Problems Faced by Magnesia Export Enterprises

Liaoning magnesia exports account for about 95% of China's total magnesia exports. Under the quota bidding management system, the export order of magnesite in China is developing healthily on the whole, protecting magnesite resources and protecting the interests of enterprises. However, through the research and development of magnesia export enterprises, it is found that at present, the export of magnesia industry in China is also facing some problems:

First, the export order needs to be further standardized. At present, there are many magnesia exporting enterprises, and the phenomenon of low price and disorderly competition still exists. In addition, export smuggling of magnesia also violates the interests of law-abiding enterprises.

Second, exchange rate appreciation affects export competitiveness. Magnesia is a resource product with high homogeneity. The appreciation of RMB leads to the price of magnesia under the competitiveness of China's export. Magnesia from Russia, North Korea and other countries exerts pressure on my export.

Third, rising labor costs squeeze profit margins. The sharp rise in labor costs has reduced the profit margin of enterprises, but also squeezed R&D and environmental investment in magnesia industry.

Fourth, the ability of enterprises to use pricing power needs to be improved. Although China's magnesia exports account for 60% of the world's exports, the cost of exchange rate, labor force and so on has risen. It is difficult for domestic enterprises to absorb pressure through pricing power. The ability of Chinese magnesia enterprises to absorb pressure through pricing power needs to be improved.


Fifth, the order of magnesia mining needs further planning. Some small and medium-sized enterprises still have indiscriminate mining behavior, and the comprehensive utilization efficiency of mines is not high, which affects the production and operation order of magnesia industry.

III. Relevant Recommendations

First, we should further standardize the export order of magnesia, create a good export environment, and intensify efforts to crack down on export smuggling of magnesia.

Second, from the perspective of sustainable development, relevant departments should strengthen the mining planning of magnesia industry, increase mineral resources tax appropriately according to the relationship between market supply and demand, and promote the healthy development of magnesia industry.

Third, magnesia export enterprises should strengthen cost management, increase technological innovation, take the road of scale development, establish industry production standards, and constantly eliminate backward enterprises.