Neodymium Permanent Magnet 20160121

Development Circle of China Neodymium Magnet in 2014-2015 

Economy Circle of Neodymium Magnet Industry
There is no obvious economical circle in NdFeB magnet industry. In spite of the recession of domestic economic market and a huge industrial overcapacity, neodymium permanent magnet industry is still rising, due to continually growing downstream demand.

Maturity of Neodymium Magnet Industry
Strategic characteristic and market characteristic of neodymium rare earth magnet manufacturers change with the variation of industrial life circle.
1. In the start-up stage, the manufacturers are intent to attract customers’ attention to products.
2. When the industry enters into growing period, potential competitor will be attracted to the market, intensifying the competition.
3. The growth rate will decrease when products meets all the customer’s requirements. At that time, the products enter into mature period.
4. During the mature period, despite the slow growth, new competitor will still come into the market. In order to capture the market share, every company competes more fiercely and the market share becomes fragmented.

Comparing with the growing downstream demand, China NdFeB permanent magnet manufacturers are still in the start-up stage. Gan Yong, President of Chinese Society of Rare Earth, points out that developed countries pay high attention to system construction of high-quality material and produce high-end rare earth magnet materials, which obviously improves the development level of neodymium iron boron industry with high energy product. However, domestic production technology is lagged behind. Currently, magnetic material manufactured by China covers 80% in the world, but the high-quality rare earth permanent magnets only occupies 10% of the whole production yield. Almost all the products are domestic demand and China only covers 20% of the overseas market. The gap between China and developed countries is obvious.