October 31st, 2025
CCM Market Insight (October 2025)
Kiln upgrading policy
Haicheng area: A mandatory kiln upgrading plan is to be strictly enforced by the end of December. All traditional reflective kiln must be closed or tore down without any exceptions. The approved kiln types compliant with the policy are flash kilns and rotary kilns.
Dashiqiao area: No accurate deadline for kiln upgrading has been announced yet. However, it is likely to align with Haicheng’s timeline (end of December), pending further policy clarification.
Raw material supply
Ore supply remains tight, with high-grade ore being particularly short-handed. Sourcing ore with special specifications has become more challenging.
For magnesium oxide over 90% purity or requiring particular specifications, production leadtime will be longer due to the additional time needed for ore selection.
Production status
In response to the upcoming production halt, all plants are currently working at full capacity. This is driven by two factors:
- buyers, who have aware of potential future supply shortages, are advancing their procurement plans to secure material before the shutdown.
- except for exsiting orders received that need to produce, plants are striving to produce additional semi-finished products for stock.
Stock information
Many plants are actively building up inventory and try to stock as many volume as they can, so that when production is halted in the future, their goods can be sold at a significantly higher price to make more profits.
Even though there are stocks in the market, it doesn't mean that buyers can always get the goods, because the stocked goods are intended to drive up prices, not supposed to ensure timely supply.
Order leadtimes
The delivery time for all products have generally been extended, it's necessary to check in advance about production plan case by case.
Price trend
Prices are currently stable till end of October, but upgoing is a certain trend in future. Increasing amout is not predictable at present.
