This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Global And China Permanent Magnet Industry Report, 2012

The price hike in 2011 made downstream enterprises purchase part of NdFeB in advance. In 2012, the NdFeB industry is meeting with unprecedented dilemma. What is worse, nearly the whole downstream market of NdFeB is on the decline, especially wind power. As the world's largest wind power country, China has seen its newly-added installed capacity drop by 10% in 2012.

 

The market prospects of HDD and ODD, which are the most important application fields of bonded NdFeB, look gloomy. Popular electronic products, such as tablet PC which is gradually occupying traditional PC market, don't use HDD and ODD. Traditional PC is HDD and ODD's main market, and the market may decline continually.

 

HDD shipment was about 620.652 million in 2011, but was only 442.32 million in the first three quarters of 2012, and is predicted to be only 582.31 million in 2012, down 6.2% year-on-year. The HDD shipment is estimated to decline to 536.82 million in 2015, down 14% compared with 2011. The ODD shipment was about 495 million in 2011, and it is expected to decline to 425 million in 2015.

 

Other areas, such as frequency conversion air conditioner, e-bike and loudspeaker, are facing decline too. These areas are more sensitive to price, ferrite is competent in these areas too, and the cost is much lower.

 

But NdFeB is applied widely in automobile market, especially EPS. It is estimated global EPS motor shipment will reach 33.9 million in 2012, and run up to 42.6 million in 2014, up 25.7%. The application scope of EPS is stretching from high-end to low-end vehicles, so the market prospect is very good. But most EPS motors are produced by Japanese companies, who will purchase local magnet with priority.

 

The high price of NdFeB in 2011 propelled numerous Chinese companies involve in this industry. About 90% NdFeB magnet was produced in China in 2012. The production capacity of Tianjin, Shanxi, Zhejiang, and Baotou had exceeded 300,000 tons in mid 2012, while the actual demand was less than 100,000 tons, so the production capacity was seriously excessive. Although some people believe that high-end NdFeB production capacity is not surplus, the most important application market of high-end NdFeB is HDD and ODD, whose market prospects don't look good in the long run.

 

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs