Japan Makers’ Bond Magnet Output Downs by 6% in 2008

Annual bond magnet production by Japanese magnet makers is estimated to have decreased by 6% to 63.5 billion yen in 2008 from 2007, according to the Japan Association of Bonded Magnet Materials. The association estimates the domestic production shrank by 9% to 24.7 billion yen and Japanese makers’ offshore production decreased by 4% to 38.8 billion yen. Flexible bond magnet production seems to have increased by 5% in Japan and by 3% at overseas. Rigid bond magnet output is likely to have decreased by 18% in Japan while increased by 1% at overseas. Rare earth bond magnet production seems to have kept flat in Japan while decreased by 7% at overseas.

Flexible bond magnet turned to the year-on-year increase in both value and volume in 2008 though which has shrunk by 2007. The domestic output weight is estimated to have increased by 6% year-on-year thanks to the demand growth for made-in-Japan magnet applied to motors. Chinese magnet was impacted by stronger yuan exchange rate and higher labor cost. The demand was enough strong from motors to cover the decline of other applications such as audio and visual equipment, office automation appliances and commodity goods.

Output value of rigid bond magnet turned downward in 2008 though which had kept the year-on-year growth by 2007. The demand largely declined from office automation machines such as printers. The demand for rare earth bond magnet weakened during October-December to follow higher financial risks. Rare earth bond magnet makers are downsizing the outputs. The output weight may become less than 600 tonnes of 2007.

See an attached table.