Overcapacity plagued China NdFeB rare earth industry

2013 China NdFeB running capacity increase of 10% , reaching 330,000 tons or more, and demand is expected at 8.5 million tons , overcapacity has become hinder NdFeB enterprises move a mountain . Expert interpretation , overcapacity is not formed overnight , multi-pronged approach needed to defuse the crisis .

According to authoritative data show that from 2000 to 2013 , Chinese production capacity from 08,000 tons NdFeB rough expanded to 335,000 tons , in 2013 the production capacity is 2,000 with an annual capacity of 41.9 times . Currently rough NdFeB production is mainly concentrated in the eastern region , accounting for 61 percent of the country, followed by the north, about 26 %.

As we all know , is divided into NdFeB sintered NdFeB and bonded NdFeB , because of the use of different techniques, magnetic there a huge difference , and its applications are also different. Among them, the application field of sintered NdFeB most widely used, and therefore , capacity is also much larger than the proportion of sintered NdFeB Bonded NdFeB ratio of approximately 97:3 , sintered NdFeB overcapacity has become the hardest hit .

Lack of demand downstream industry chain , resulting in the accumulation of NdFeB production capacity , coupled with the lack of understanding of the enterprise market for neodymium , for the pursuit of the interests of blind expansion , and the lack of effective regulatory mechanisms that lead to the emergence of extreme current NdFeB industry overcapacity situation.

To tide over the crisis of overcapacity , companies make out all the stops to fight the crisis and a ride through the tough , waiting for their planes . For this reason , industry experts put forward some suggestions for reference ;

First, the upper and lower chain with NdFeB enterprises to maintain cooperation and reduce investment risk. Companies do the eggs in one basket , decentralized place , can reduce investment risk. Such as different levels of cooperation and its upstream or equity金力永magnetic , sea Magnets , Ningbo Yunsheng so downstream joint venture , both to ensure a smooth supply of resources , but also for product orders.

Second, the purchase of high-end equipment , and enhance competitiveness. NdFeB industry output in excess , mostly low-end products , so only improve the quality of the finished product shipped , in order not to be eliminated. For example, in the field of NdFeB product testing , more and more enterprises currently selected instrument developed by the Beijing State NdFeB collar "Detecting Robot" , strict control on product quality , improving the quality of manufactured . Such devices can replace manual labor, and therefore can reduce the cost of risks. In addition, corporate purchasing such equipment , but also enhance the sense of trust Party , has won orders to raise the stakes .

Third, actively explore the market , should be placed. Some companies simply think NdFeB are scarce resources , overcapacity, weak demand and so on , are just temporary phenomenon , so long will the product hoarding up, waiting for the industry boom again when sold. This is also the way most businesses , but not for all companies to apply. Therefore, only to find channels , and actively explore the market, is the right solution.

According to statistics, currently there are 22 companies intend to build capacity planning , total annual output of 69,800 tons , if fully completed by the end of 2014 , an increase of late Chinese NdFeB production capacity will reach 21.2% , when the market situation will be more severe. As competition intensifies , companies should take more active measures to cope with the ever-changing NdFeB market .


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