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    NdFeB magnet industry owns a positive prospect but to suffer reshuffle for a long time
    ----An interview with Yan Xiangling, GM of Zhejiang Sheensen Magnetics Technology Co. Ltd.
    Zhejiang Sheensen Magnetics Technology Co. Ltd. is a high-tech corporation and devotes to rare earth permanent magnetics’ research, production and applications. The company owns a series of advanced production and R&D equipments such as ICP spectrometer, measurement test instrument, Hast test chamber, vacuum quick-setting furnace, vacuum calcinator, jet milling and automatic magnetic compressor, which strongly guarantee the company’s production, testament and experiment at high level.
    The company cooperated with universities and established China Jiliang University Sheensen R&D center, continually prompting technological innovation. Moreover, the company succeeds in applying 20 national Patents, one of the invention patents is Permanent Magnet For Drive Motor Of New Energy Vehicle; and was awarded for technical inventions and technological progress. Its self-developed Special Magnet for Wind Power has been listed as the new industrial products of Zhejiang. The company’s products have been applied in various areas such as wind powder supply, new energy vehicle, communication, medical instrument, electroacoustic equipment, high performance motor and so on. The company also established domestic sales center in Shanghai, Ningbo, Wuhan, Guangzhou, Changchun and international sales center in the USA, Germany and South Korea. Their development in the global market is fast with the annual market shares having increased by more than 20% in the past three years.

    Asian Metal: Hello, Mr. Yan. Thanks you for accepting our interview. Could you please introduce your company briefly at first?

    Mr. Yan: Of course. Our company, Zhejiang Sheensen Magnetics Technology Co. Ltd., mainly produces NdFeB magnet. Since the establishment of the company, we always insist on the management belief of “Technology innovates production, Good quality creates the market, Excellent performance create famous brand, and Share success with the staff.” Due to our unceasing management improvement, we are certified by ISO/TS16949, ISO14001 and awarded National High-Tech enterprise, Zhejiang Key R&D center and Key R&D Lab, Two High enterprise in Huzhou City, owning 20 national patents.

    Asian Metal: That’s amazing! According to our statistics, China’s annual production capacity of NdFeB magnet is about 180,000t, but the downstream demand is about only 100,000t. The market therefore witnesses oversupply and most producers’ operating rate is less than 50%. How about your company’s operation in 2016?

    Mr. Yan: Global NdFeB magnet industry was oversupplied. But with demands from emerging industries increasing, the problem can be eased. We took an overall upgrade in 2012 and adjusted our orientations of the company, market and customers. Our operating rate was 60% in the first half of 2016 and more than 70% in the later half of 2016.

    Asian Metal: Your company really did well last year. Typically, Q1 is the busy season of the NdFeB magnet industry, producers generally reported of increasing orders; How about your company?

    Mr. Yan: Demand for NdFeB magnet was strong in Q1 and we also saw a great increase in orders, which were more than the total of two quarters last year. We are planning to build the second branch now.

    Asian Metal: Congratulations! But most producers are not optimistic about the market in Q2, anticipating that orders will decrease during the season. What’s your opinion on the NdFeB magnet market in May and June?

    Mr. Yan: Personally, I think orders will decrease in Q2 as May and June is the traditional slack season. However, the influence varies based on the company’s orientation and area. For example, does the company seal deals in the overseas market or the domestic market? Which area is the company involved in? In addition, consumer electronics area will suffer more impact than the industrial area.

    Asian Metal: Prices for PrNd mischmetal have been on the rise since early this year. Major plants in North China raised listing prices, alongside the national reserve bidding meeting convened in January and March, suppliers are positive about the future market, constantly raising prices to test the market response. Mainstream prices for the material have risen to RMB365,000-370,000/t with 60-day payment term, up by 10% compared with the prices in early January. But most NdFeB magnet plants found difficulty in raising prices. Did you have the same problem? How about your price adjustment for NdFeB magnet?

    Mr. Yan: Rare earth prices have been on the increase since early this year, which had imposed some pressure to magnet plants. Because they were afraid of losing customers if they raised prices, and could only compressed their own profit. We also met the same problem; but some of our customers could understand us.

    Asian Metal: We predict that prices for PrNd mischmetal still have room to rise. How do you think about the price trend of NdFeB magnet in May, June and Q3-Q4? How will the supply-demand change?

    Mr. Yan: I believe that NdFeB magnet prices will trend upward. With the environmental protection inspections strengthened, labor cost will rise, resulting in price of rare earth increasing and further affecting NdFeB magnet prices. But in May and June, I think the prices will tend to be stable. Then in Q3 and Q4, I expect prices to rise but the range will depend on demand. According to the situation of last year, the profit of the NdFeB magnet industry was low with many plants’ profits even lowering than 10%.

    Asian Metal: The NdFeB magnet market is still dominated by buyers now with suppliers bidding fiercely. In the past two or three years, many small plants in Ningbo closed or shut down. What’s your opinion about the matter? When do you think the transforming process will end and how do you think about the market outlook?

    Mr. Yan: NdFeB magnet plants developed uneven; good companies performed quite well but the poor ones operated badly. Some middle and small sized plants in Ningbo blindly pursuit low prices, ignoring internal management and technical upgrade, and finally closed or shut down with problems couldn’t be solved. I think the industry adjustment will last long as the general trend is that high-quality resource is transferred to qualified suppliers. The market outlook of the NdFeB magnet is positive. But the most important is that enterprises should pay more attention to their management to create their core products and improve their competitiveness.

    Asian Metal: Thanks for your sharing, wish your company a bright future!

    Mr. Yan: Thank you!
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