Neodymium Permanent Magnet China
Advices on Neodymium Magnet Investment 20160122
From 2000 to 2014, production capacity of China neodymium magnet blanks expanded from 8 thousand tons to 4.05 hundred thousand tons. The production capacity of 2013 is 50.6 times that of 2000. At present, the domestic blank manufacturers of neodymium iron boron is mainly concentrated in East China, accounting for 61% of the country, followed by North China, accounting for about 26%.
As is known to all, the neodymium rare earth magnet can be divided into sintered and bonded permanent magnet based on their differences in production technology, magnetic performance and the application domains. Among them, the most widely used one is sintered NdFeB. Therefore, the output of sintered neodymium magnet is far greater than that of bonded NdFeB; the ratio is about 97:3, which reflects the problem of overcapacity of sintered magnets.
Such problem is caused by, first, low demand from downstream industry chain has resulted in the accumulation of neodymium iron boron output; second, without enough understanding of the market for NdFeB, in pursuit of interest, manufacturers expanded recklessly, while at the meantime lacks effective regulatory mechanisms.
To go through the overcapacity crisis, firms make out all the stops, awaiting a turn for the better. For this, experts made a few suggestions as follows:
1. Neodymium permanent magnet manufacturers shall lower the investment risk by maintaining cooperation with up and down industry chain. Do not put the eggs all in one basket, disperse them and risk is lowered.
2. Purchase high-end equipments to enhance competitiveness. The excessive output of NdFeB rare earth magnet is mostly low-end products. Therefore only when the quality of finished products improved can a manufacturer survive. Take an example of the neodymium magnet product inspections field, in order to have better control over quality of finished products, growing number of companies go for the magnet inspection robot. Such type of equipment can replace manual labor, and reduce the cost risk for manufacturers. In addition, owning such equipment enhances the confidence of the customers, which helps in wining purchase orders.
3. Actively explore the market instead of sitting still. Some manufacturers simply believe that neodymium permanent magnet resources’ getting scarce, overcapacity, weak demand and so on are all just transitory phenomenon. They hoard the products and wait for industry boom, which is the solution most enterprises make, but it not the clever one for all. The only way out is to find distribution channels, and actively explore the market.
From 2000 to 2014, production capacity of China neodymium magnet blanks expanded from 8 thousand tons to 4.05 hundred thousand tons. The production capacity of 2013 is 50.6 times that of 2000. At present, the domestic blank manufacturers of neodymium iron boron is mainly concentrated in East China, accounting for 61% of the country, followed by North China, accounting for about 26%.
As is known to all, the neodymium rare earth magnet can be divided into sintered and bonded permanent magnet based on their differences in production technology, magnetic performance and the application domains. Among them, the most widely used one is sintered NdFeB. Therefore, the output of sintered neodymium magnet is far greater than that of bonded NdFeB; the ratio is about 97:3, which reflects the problem of overcapacity of sintered magnets.
Such problem is caused by, first, low demand from downstream industry chain has resulted in the accumulation of neodymium iron boron output; second, without enough understanding of the market for NdFeB, in pursuit of interest, manufacturers expanded recklessly, while at the meantime lacks effective regulatory mechanisms.
To go through the overcapacity crisis, firms make out all the stops, awaiting a turn for the better. For this, experts made a few suggestions as follows:
1. Neodymium permanent magnet manufacturers shall lower the investment risk by maintaining cooperation with up and down industry chain. Do not put the eggs all in one basket, disperse them and risk is lowered.
2. Purchase high-end equipments to enhance competitiveness. The excessive output of NdFeB rare earth magnet is mostly low-end products. Therefore only when the quality of finished products improved can a manufacturer survive. Take an example of the neodymium magnet product inspections field, in order to have better control over quality of finished products, growing number of companies go for the magnet inspection robot. Such type of equipment can replace manual labor, and reduce the cost risk for manufacturers. In addition, owning such equipment enhances the confidence of the customers, which helps in wining purchase orders.
3. Actively explore the market instead of sitting still. Some manufacturers simply believe that neodymium permanent magnet resources’ getting scarce, overcapacity, weak demand and so on are all just transitory phenomenon. They hoard the products and wait for industry boom, which is the solution most enterprises make, but it not the clever one for all. The only way out is to find distribution channels, and actively explore the market.
