ferrite magnets
Analysis of current status and development prospects of the magnetic material industry
Jul 13,2021.

Magnetic materials are an important type of basic functional materials with a wide range of applications. For example, industries such as electronics, information, electric tools, automobiles, and home appliances have irreplaceable demands for magnetic materials.

At the same time, as the country currently advocates energy conservation, environmental protection, and green development, as a clean energy source, magnetic materials are more and more widely used in emerging fields such as energy conservation and environmental protection, new energy, electric vehicles, smart cities, and smart earth. Used in military and national defense fields such as robots, unmanned aerial vehicles, aerospace, satellite remote sensing, etc.

Especially for ferrite permanent magnet materials, which are cheap and rich in resources, the overall market demand is growing at a rapid rate of 10% to 15% per year. In addition, magnetic materials, as one of the current national key development industries, its development has always been strongly supported by the national industrial policy.

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This article describes the current situation of the magnetic materials industry and analyzes the development prospects of the magnetic materials industry. With the gradual development of the magnetic materials industry, the competitive situation is becoming increasingly severe. Enterprises can only rely on technological progress and product upgrades to improve market competitiveness and achieve steady growth in performance. .

Current status of the magnetic material industry

1. There are many and small enterprises, without comprehensive competitive advantages and core competitiveness

At present, the main characteristics of my country's magnetic materials, especially ferrite manufacturing industry, are: the number of enterprises, small, scattered, and the low degree of intensification results in extensive production management, which cannot meet the precise control needs of high-performance products for the manufacturing process.

2. The degree of automation is low, and the production cost is greatly increased

The extensive management mode and the low degree of automation in the manufacturing process result in poor product consistency, low yield, and low product stability; the high energy consumption and high emissions characteristics of traditional manufacturing industries, coupled with extensive management mode, increase resource and energy consumption , Resulting in a substantial increase in production costs.

3. The supply chain is unstable, and the bargaining power of upstream and downstream is getting stronger and stronger

In recent years, due to the continuous sharp increase in the price of international iron ore, the comprehensive recycling of iron and phosphorus by steel plants, the expansion of the national magnetic material production and the increase in demand, the supply of iron-containing raw materials has been tight, and the prices have been rising; there is no raw material at present. Supply bases and companies that have failed to form a backward integrated industrial chain to stabilize the supply pattern; due to the high degree of dependence on raw materials, prices will push up costs and the company's operating profits will become thinner year by year.

4. There are more and more potential competitors, and competition in the industry is intensifying

In the magnetic materials industry, due to the low technical barriers to enter the middle and low-end products, companies with a background in the iron and steel industry not only have strong capabilities, but also have the advantages of local materials and low prices in the supply of raw materials. Domestic dumping of the same quality and low price has disrupted the supply and demand relationship in the magnetic material market.

Development prospects of the magnetic material industry

1. The transformation and upgrading of the magnetic material industry is imminent

At present, in response to the national call for energy conservation, environmental protection, and green production, all walks of life are making corresponding transformations and investments. The magnetic material industry has also ushered in a large-scale reshuffle, and enterprises that fail to meet environmental protection standards in production and environmental protection are facing shutdown.

As we all know, the production and processing of magnetic materials, especially permanent ferrite materials, is accompanied by high energy consumption such as water, electricity, natural gas and other energy consumption, and at the same time puts forward higher requirements for on-site environmental management.

At present, the increase in energy consumption, raw material costs, and labor costs of small and medium-sized enterprises themselves has led to an increase in production costs and a decline in corporate profits. Coupled with compulsory investment in environmental protection, in this case, many small and medium-sized enterprises have no choice but to stop production and switch to production.

For most large and medium-sized enterprises, because of high management expenses and costs, there is no room for price wars in terms of profit, and there is no way to quickly transform and upgrade their industries. Therefore, they are in a state of loss and are struggling to operate.

In order to change the current passive situation, the key factors for future enterprise development are to further accelerate the intelligent upgrading of the production process, continuously improve the product structure, and develop high-performance, professional, and multi-series new products that adapt to market demand trends, so as to make the products more efficient. The technical content and added value are further improved. In the next 5 to 10 years, the key technology in electronic material technology will be magnetic material technology.

China's magnetic material industry already has a certain degree of product production scale, but compared with the United States, Japan and other countries with developed magnetic material industries, there is still a certain distance. The common problems in the industry have not been fundamentally resolved, such as small production scale, high product costs, low productivity, poor economic benefits, low product grades, and low pass rates, especially those where technological development and technological innovation cannot keep up with market demand. Rhythm, production and application are out of touch, restricting the development of the magnetic material industry.

2. Development goals of the magnetic materials industry

Although China has become one of the world's largest magnetic material production bases and sales markets, it has good development prospects. It is estimated that China's magnetic material industry will develop at a rate of 10% to 20% in the next 20 years.

The development trend of the magnetic materials market is mainly concentrated in the following three aspects: the demand for high-grade magnetic materials will increase; the demand for high-performance and miniaturized magnetic materials will increase; the demand for individualization, specialization and characteristics The demand for magnetic materials will increase.

Domestic magnetic material companies must combine their own production advantages, seize this favorable market opportunity, continue technological innovation, develop high-quality magnetic material products, and occupy the international market.

3. Intelligent manufacturing is the only way for magnetic material companies to transform and upgrade

This year, China put forward the development concept of "new infrastructure". Magnetic materials, as the key supporting functional materials and devices for the construction and development of the seven major fields of new infrastructure, are bound to usher in major development opportunities.

However, many magnetic materials companies are still in the stage of industrialization and informatization integration, and there are common problems such as high product costs, low productivity, and low pass rates. Companies that need to achieve product innovation, improve efficiency, and achieve profitability through intelligent transformation and upgrading the goal.

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