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Coronavirus Pneumonia affect rare earth permanent magnets export

Last update by Jian Guo

China's novel coronavirus pneumonia affect exports of permanent neodymium magnets.even affect the global supply chain of rare earth permanent magnets.

China's novel coronavirus pneumonia will affect exports of permanent neodymium magnets to the United States, Japan and Europe, and even affect the global supply chain of rare earth permanent magnets if production cannot be resumed within one month.

China's novel coronavirus pneumonia has entered a dormant state after the outbreak of new coronavirus pneumonia. Industry insiders said that if production cannot be resumed within one month, it will affect exports of permanent neodymium magnets to the United States, Japan and Europe, and even affect the global supply chain of rare earth permanent magnets.

Most of the upstream and downstream rare earth magnets enterprises in Ningbo have yet to return to work, one of the reasons for which is the lack of local labor, said Guo, magnet manager, head of a magnetic material production enterprise in Ningbo Tuesday. In addition, it is waiting for the government's approval.

"The local labor force is very scarce, and the workers who come back from other places need 7-14 days of isolation," said Guo. In addition, due to logistics reasons, raw materials can't come in and products can't go out. ".

Ningbo is the main production base of rare earth magnets in China. About 30% of the world's medium and heavy rare earth magnets are produced here.

In order to control the spread of the epidemic, the local government postponed the resumption of work until next Monday (17th), but before applying for resumption of work, enterprises need to make full preparations including medical supplies, such as masks, disinfectants, etc.

The reporter learned from the head of a small rare earth separation enterprise that only about 20% of local rare earth enterprises have returned to work, and most enterprises, including his company, are still preparing to return to work.

The head of a rare earth permanent magnet material company said, "the company is preparing protective equipment such as masks necessary for resumption of work. Only when these protective equipment are ready, can the company apply to the local government for resumption of work." "The specific time for the company to return to work depends on the prevention and control of the epidemic," he added In addition, the person in charge of the separation plant said that the rare earth magnets enterprise is a labor-intensive industry, so we must be careful and do a good job of protection when returning to work. In addition, due to the company's stock ready before the Spring Festival holiday, the impact on the delay of rare earth export orders is limited.

An analyst with China Rare Earth Industry Association, pointed out that downstream rare earth enterprises will prepare for storage when the price is low, so the temporary interruption of raw materials and logistics has limited impact on the entire industrial chain.

However, Mr. Guo said that if the company can't return to work within one month, after the inventory of the enterprise is exhausted, their output of permanent magnets may not be able to meet foreign demand. But if we can get back to work within half a month, and the logistics also recover at the same time, the impact of the epidemic will be temporary and limited.

Investors are optimistic. A shares of most rare earth listed companies closed higher on the 12th.

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