Local authorities in Dashiqiao city, in China’s
Liaoning province, have introduced stricter regulations on
local companies to make them comply with Beijing’s
environmental targets, and have already closed several
producers that did not meet the new standards.
The Bureau for Environmental Protection of Dashiqiao set out
the new rules on August 31, with the intention of improving the
quality of the local environment, in line with the central
The authority has since started new inspections of local
companies, and has closed a number of companies that failed to
reach the environmental standard now required.
Dashiqiao said that so far 87 companies in various sectors
have been closed, which has been achieved by cutting off their
Because Dashiqiao is the country’s second
production hub for magnesia minerals after Haicheng, especially
for fused magnesia, the new regulations are bound to affect
local magnesia output.
The number of magnesia companies that have been shut down,
among the total of 87 closures, has not been revealed, but
Industrial Minerals understands that a large number of them
would be involved in magnesia production.
Meeting the standards required by the governmental
regulations would require costly upgrades to equipment. For
this reason, many small and medium-sized producers are unlikely
to have the financial ability, or the will, to carry out such
Consequently, Industrial Minerals understands that smaller
enterprises are likely to be the hardest hit by the latest
Despite this, however, and with demand remaining weak while
there are still sufficient stocks, magnesia prices held stable
Industrial Minerals’ latest assessment on
Tuesday September 4 showed that the price of magnesia, fused,
97% MgO (Ca:Si 2:1), fob China, was unchanged at
$1,250-1,350 per tonne, flat from the previous week.
"Magnesia prices increased in a large range last year amid a
lack of raw materials, which made buyers turn to other global
producers for supplies. With demand being extremely weak this
year, magnesia prices have fallen because producers are eager
to boost their sales in a flat market," an exporter in Dalian
told Industrial Minerals.
"Though the price of magnesia has shown signs of softening
recently, I think it will not fall by much this year because
production costs have risen due to the raised standard of the
environmental requirements," the exporter added.
Prices for dead burned magnesia (DBM) were unchanged on thin
trading. The price of DBM 97.5% MgO,
lump, fob China, was steady week-on-week at $1,100-1,300
per tonne on September 4, while the price of DBM 90% MgO, lump,
fob China, stayed at $220-260 per tonne.