Resumen de Refractory manufacturers' vertical integration strategies under fire
"In my opinion, Chinese magnesia has not declined in quality and it has not gone up in price - in fact, prices have weakened," [Nicolotopoulos] said.
Nicolotopoulos also questioned whether new mines in places like Turkey, where RHI has recently invested in additional dead burned magnesia (DBM) capacity, and Brazil, where Magnesita has a magnesium oxide (MgO) operation in Brumado, are better placed to serve manufacturers than those in China, which benefit from established shipping routes and low cost production processes.
"There is a big difference in shipping costs between shipping from the Far East to Europe and shipping back the other way," he said. "This is because the containers are going back empty (e) freight rates are unlikely to go down, it is more probable that they will go up," he added.
