China into a world magnetic center, great development of the industry variables

  Historically, the world’s collected from the magnetic center has experienced in Europe (before World War II) to the United States (after World War II) and then to Japan (the last century, 70 years later) the changes. The reason is nothing less than the downstream industry chain is in line with the transfer and meet the requirements to optimize manufacturing costs. At present, the industry is going through another transfer center in 2005, China produced a total of 290,000 tons ferrite, soft ferrite 160,000 tons respectively, accounting for 46.8% of world production and 55.2%, sintered NdFeB and Bonded NdFeB total production reached about 34.8 thousand tons, accounting for more than 70% of world output, China has become the world’s “magnetic all.”

With the previous transfer of the same magnetic material industry, China will become the center of the most important power is still derived from the cost and the industrial chain in two ways.

In the cost advantage in China as manpower, land, water and electricity has a huge cost advantage, while China is the world’s largest neodymium, iron, phosphorus, iron red, four manganese oxide, one of the production of strontium carbonate, in the magnetic material access to the main raw materials have obvious advantages.

Due to cost advantages, an adequate supply of manpower and material resources as well as the broad market space, supporting the rapid and stable growth of domestic manufacturing, the Chinese deserved to become the world’s “manufacturing plant.” The magnetic material downstream industries booming in China, providing a huge market demand for space.

As the world’s other regions are not able to provide such a superior magnetic materials industry, the production environment, and therefore the transfer of magnetic materials to China has become a long-term trend.

Development of the industry variables in the next five years to increase

Over the past decade, China’s magnetic materials industry, the expansion of production capacity are very fast, mainly due to the common development of domestic and foreign enterprises. On the one hand, domestic enterprises has been improving productivity, which also emerged in the Division Ring Road, Ningbo Yunsheng, Hengdian East magnetic, Tiantonggufen such technology and scale advantages that such a company. On the other hand, magnetic materials manufacturing enterprises in developed countries, because local production costs are too high, the capacity and technology transfer to the more backward areas, while the advantages of both cost and the industry chain, China has become the first choice. According to incomplete statistics, at present has been cast in the mainland factories or well-known enterprises cooperation, including Japan’s TDK, FDK, EP Juan SON, Hitachi Metals, Sumitomo, South Korea pear, third, and Europe, PHILIPS, VAC, EPCOS, United States The ARNORD, MAGNEQUENCH so.

But the future pace of development of different magnetic materials may have been differences in the specific point of view, in energy-saving and device miniaturization trend, as new applications constantly being developed, and the rapid development of NdFeB motor, Nd-Fe – Boron industry in the coming five years will continue to maintain an average annual growth rate of 20%. The ferrite magnetic material, due to the low-end products and less saturated new areas of development, lack of access to Nd-Fe-like rapid growth. According to China’s magnetic materials industry, the “Eleventh Five-Year Plan” in the next five years, the scope of the world and China, and the soft magnetic ferrite materials, the average annual growth rate to 10% or less (although the “Tenth Five-Year Plan” serious undervalued, but the future is difficult to avoid the decline in growth rate).

Should be noted that, with a high-tech products will continue to maintain a rapid development, industrial upgrading has become a trend, which is generally low in the past targeted domestic industries and downstream industries against the backdrop of escalating consistent. Sub-product term, permanent magnetic materials of technological development is still the main direction of the magnetic properties of a stronger and more stable physical properties, electrical products will be the most promising application areas, while the soft ferrite material development will focus on low-loss , high-frequency, high magnetic permeability and anti-electromagnetic interference and other topics.

China’s enterprises serious imbalance between production and output value of

Although production capacity to see that China has accounted for half of the world’s magnetic material industry, but because the domestic prices of magnetic material is far below international levels, resulting in yield and output value do not match. In the international market, 30% of high-end products to market sales accounted for 70%, while the average price of our magnetic products of about 50% lower than in Japan. The main reason for this phenomenon is the magnetic materials, high proportion of low-end products and low pricing power of domestic firms, but from a different point of view, also means that a broad space for development.

    In addition the domestic industry concentration is still low, many small and medium enterprises, even large scale enterprises, as compared with the international giants have great difference. A group of widely cited data in 2004, TDK’s annual sales revenue of about 8.5 billion, is China’s industrial output value of magnetic material five times. However, some domestic enterprises in the high-quality rapid expansion of production scale, the same time, have initially mastered the advanced production technology, the future may be bigger and stronger.

Technology and client resources as a prerequisite for the development of enterprises

Experts pointed out that under China’s current pattern of magnetic material industry, the following three aspects are noteworthy: when compared with historical levels, magnetic materials, downstream industries such as electronic components manufacturing industry, the declining profit trend; raw materials and labor costs is continuing to rise; demand is gradually transferred to the high-end products.

As the costs rise and the decline in profitability of downstream industries, will bring China’s magnetic materials industry, deterioration in living conditions. The high-end products to the transfer, the technological level of China’s enterprises have higher requirements. Chinese enterprises in the future development if you want to get a stable income and achieve long-term growth, we must have the following two conditions:

The first condition is the technology leader in high-end technology and product mix. On this basis, enterprises can upgrade through technology to offset rising costs, to gradually replace foreign products, while meeting the changing needs of the downstream.

The second condition is associated with quality customers to form a stable and cooperative relations. With the stable quality customers and cooperative relations on the one hand help the enterprises in a steady growth in the earnings and the creation of brands, the other hand, can guarantee the high-end enterprise products.

Because of these two companies will need to be supported by its own strength, so the future of our industry will be gradually moving towards integration of magnetic materials, will present “the strong stronger” trend will eventually appear similar to TDK, Hitachi Metals, NEOMAX such giant.

It is understood that the Division Ring is the world’s second-largest and the biggest manufacturer of NdFeB in 2005, its production close to 8,000 tons, accounting for about one-sixth of the world’s total capacity. The Hengdian DMEGC is the world’s most productive ferrite manufacturers (an annual output of 48.1 thousand tons) and the nation’s largest manufacturer of soft ferrite one (an annual output of 21.2 thousand tons), respectively, 7.76 share of global output % and 7.31%. The industry believes that, from the current situation, in the Division Ring and Hengdian DMEGC basically reached the international advanced level, the development of long-term momentum.

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