Magnetic products producers: cobalt cathode in low demand

BEIJING (Asian Metal) 30 Dec 08 – With the Spring Festival coming around the corner, most magnetic products producers are ready to stop production for the year. Meanwhile, as the economy is gloomy for 2009, those consumers are reluctant to hold too much cobalt cathode at hand, despite that the price has gone down slightly to around RMB285-290/kg (USD15.Asian Metal Copyright “This week, suppliers lower the offers of cobalt cathode slightly to around RMB285kg USD15.Asian Metal Copyright58-15.86/lb) this week.

A magnetic products producer in Zhejinag, who mainly produces NdFeB, told Asian Metal that their output is only about 1/3 of their normal amount in early 2008. “Although we’re still in operation, the output has reduced sharply and we dare not to purchase cobalt cathode more than one ton a time,” said the source.Asian Metal Copyright “It is reported that most NdFeB producers in Zhejiang and Shanxi have already stopped production, but we still maintain normal operation,” said the source who consumes about two tons of cobalt cathode.Asian Metal Copyright

According to the source, there are about 50 magnetic products producers in the local region. Among them, at least 2/3 have stopped production with only several workers left for production, roughly about one month earlier than their schedule.Asian Metal Copyright Therefore, the demand of their NdFeB is a bit better than those that supplies to small sized electric motors.Asian Metal Copyright

Close sources told Asian Metal that producers in Zhejiang focuses on magnetic products that applies to loudspeakers, small sized electric motors, and so on; but the demand of those products has started to drop considerably since late September.

“This week, suppliers lower the offers of cobalt cathode slightly to around RMB285/kg (USD15.58/lb) from RMB290/kg (USD15.86/lb), but we dare not to purchase,” said the source.Asian Metal Copyright “This week, suppliers lower the offers of cobalt cathode slightly to around RMB285kg USD15.Asian Metal Copyright The source, who has consumed about one ton of cobalt cathode this month, only held 250kg at hand.

Meanwhile, another magnetic producer in Shandong told Asian Metal that they have purchased about 250kg of cobalt cathode at around RMB290/kg (USD15.86/lb) last week.Asian Metal Copyright “This week, suppliers lower the offers of cobalt cathode slightly to around RMB285kg USD15.Asian Metal Copyright “It is reported that most NdFeB producers in Zhejiang and Shanxi have already stopped production, but we still maintain normal operation,” said the source who consumes about two tons of cobalt cathode.Asian Metal CopyrightA magnetic products producer in Zhejinag, who mainly produces NdFeB, told Asian Metal that their output is only about 13 of their normal amount in early 2008.Asian Metal Copyright

According to the source, they mainly supplies NdFeB products to big electric generators producers, and this industry has been in good development in recent years. Therefore, the demand of their NdFeB is a bit better than those that supplies to small sized electric motors.Asian Metal Copyright Among them, at least 23 have stopped production with only several workers left for production, roughly about one month earlier than their schedule.Asian Metal Copyright However, roughly 70-80% of NdFeB in China is applied to the latter.Asian Metal Copyright Among them, at least 23 have stopped production with only several workers left for production, roughly about one month earlier than their schedule.Asian Metal Copyright

Although their consumption of cobalt cathode is stable, the source is reluctant to hold too much cobalt cathode at hand due to the unclear future.