Why is China's magnesium oxide industry large but not strong, and what is the market outlook?

Why is China's magnesium oxide industry large but not strong, and what is the market outlook?
China is the world's leading producer of magnesium compounds, yet its output remains concentrated in crude, primary grades. The 2019 capacity for mid-to-high-end magnesium oxide stood at 319,000 tons, with production reaching 218,000 tons, growing at a 4% CAGR. Demand spans metallurgy, refractories, rubber, ceramics, and emerging sectors like silicon steel, electronics, and pharmaceuticals. However, the market is immature: producers are too small, overcapacity persists, and profitability is weak. Downstream industries such as rubber are sluggish, limiting demand growth. Despite abundant domestic magnesite, brucite, and salt lake resources, China still imports certain high-end magnesium compounds, highlighting a structural gap between volume and value.