★ Significant Reduction in China’s Magnesia Production, with Construction Materials Adjusting in Tandem
China’s magnesia production capacity is undergoing substantial cuts, while downstream sectors such as steel, cement, and glass are also reducing capacity to varying degrees, driving continued optimization of the industry structure.
★ Emergence of “Green” Fused Magnesia, Highlighting Market Potential
Several new energy fused magnesia projects will be established in Tongliao, Inner Mongolia, and are expected to gradually commence production in 2026. With advantages of low cost and low carbon emissions, “green” fused magnesia is poised to become a rising force in the market.
★ Loosening of China’s Graphite Export Controls, Rapid Expansion of African Graphite
As the China–U.S. trade environment eases, China’s graphite export restrictions have been partially relaxed. Meanwhile, African graphite projects are expected to come online over the next two years, accelerating their share of the global market.
★ Intensifying Competition in the Silicon Carbide Market, with Overcapacity Pressure Evident
Demand for black silicon carbide remains weak, yet production capacity continues to expand, further exacerbating supply–demand imbalances. Green silicon carbide faces high costs due to rising petroleum coke prices, but prices remain low amid a soft downstream market.On November 22, 2024, the European Union launched an anti-dumping investigation on Chinese corundum products, and the pattern of China's corundum export market will usher in a restructuring.
★ Restructuring of the Corundum Export Market, with Supply Challenges
The EU has imposed anti-dumping duties on Chinese corundum products, while domestic white corundum capacity continues to expand, intensifying export competition. Brown corundum costs remain high due to tight bauxite supply, yet weak demand has created persistent low-price competition that requires resolution.
★ Persistent Tightness in Bauxite Supply, Divergence Between High and Low Grades
High-grade bauxite supply remains tight, sustaining high prices, while low-grade bauxite is abundant but yields thin profits, leading to intensified market competition.
