Nov. 29, 2025 - Liaoning Province has entered the final stage of its campaign to eliminate light-burned reverberatory kilns, a move that is reshaping China’s magnesite industry. As the China’s largest production and resource base for magnesite and caustic calcined magnesia (CCM), this multi-year industrial reform is fundamentally transforming the supply structure, market prices, and competitive landscape.

The elimination initiative is driven by China’s national carbon reduction goals and supported by a series of regulatory frameworks, including the Liaoning Magnesite Industry Sustainable Development Regulation, the Implementation Opinions on Advancing High-Quality Development of the Magnesite Industry, and the Air Quality Continuous Improvement Action Plan. These policies set a clear schedule: all light-burned reverberatory kilns must be eliminated by the end of 2025, no new capacity is permitted, and shaft kilns will be banned from capacity replacement programs starting in 2026.

Under strong policy enforcement, progress varies among regions. Haicheng, the industry’s core hub, completed its large-scale demolition phase earlier and had removed 186 kilns with 1.94 million tons of capacity by March 2025. Investment in modern equipment such as suspension calciners has accelerated, with several upgraded lines approaching startup. Meanwhile, Xiuyan County and Fushun Dongzhou District are focusing on final shutdown and sealing actions—local authorities have implemented physical sealing measures, including power and water disconnection, to ensure permanent closure. In Dashiqiao, another key production zone, multiple rounds of supervision have pushed the region into a full retirement phase.

A notable development emerged on November 13, when the Liaoning Department of Industry and Information Technology announced the withdrawal of two capacity replacement approvals due to evolving market and resource considerations. This marks a shift from broad execution to dynamic management and signals the avoidance of excessive new construction.

The market is reacting rapidly. Over the past two weeks, multiple producers in Haicheng and Dashiqiao raised CCM prices by RMB 30–50 per ton, while many others suspended quotations and shipments to focus on inventory preparation. Producers widely expect tight supply and significant price increases once enforcement reaches the final deadline. As some companies stated, “We are building stock now for post-regulation price gains.”

Industry analysts emphasize that the current price movement reflects a structural adjustment rather than speculative volatility. Although new suspension kiln systems offer cleaner production and higher product consistency, their full capacity release requires time. Small and mid-sized enterprises face financial pressure during transformation, while large-capacity producers capable of upgrading their facilities are rapidly gaining market share.

The reform continues to bring short-term challenges—including capital burden, production disruptions, and temporary supply imbalance—but long-term benefits are increasingly visible: air quality improvements, industry consolidation, reduced disorderly low-price competition, more rational pricing, and enhanced competitiveness of leading enterprises.

Industry participants widely believe that the completion of elimination efforts marks a turning point. The sector is shifting from expansion-based competition to value-driven growth, with high-end refractories, magnesium-based building materials, and magnesium chemical applications expected to become new growth engines. Export competitiveness is also poised to strengthen as product quality improves.

“This is painful but necessary,” said one local producer. “The direction is clear, and the industry will look very different next year.”