Japan Hitachi Medical visits Asian Metal the third time

Tsuneo Maeda, Market Executive Director of Hitachi Medical, Hideaki Fujiwara, Manager of Business Promotion Department and Minister of Management Strategy Department and Zhuang Lixin, Minister of Business Promotion Department came to visit Asian Metal on the afternoon of February 27th, 2012, talking about the neodymium market and the price with Bruce Zhang, Manager of Minor Metal Department, Erin Zhao, Principal of Rare Earth Department and Vivian Pang, Principal of NdFeB magnets Department

Changes of the price of neodymium metal will have great effect on the cost as Hitachi Medical has a strong demand of the material to produce nuclear magnetic resonance products. “We need to consume several tons of neodymium metal to produce each nuclear magnetic resonance product, so we come to know the market trend again. Hideaki Fujiwara came with me last time, and Tsuneo Maeda, Market Executive Director also comes this time in order to know more about the material,” Mr Zhuang said.

Hitachi Medical was warmly received by Asian Metal and they further discussed the neodymium metal market. The price of neodymium metal continued to fall in H2, 2011 for the following reasons: Firstly, the demand from NdFeB magnets industry decreased after the middle of the year due to high cost as the neodymium metal price saw rapid growth in Chinese market. Secondly, participants were cautious to take positions, concerning about a second crisis as overseas economy experienced downturn with major developed countries suffering from debt crisis. Thirdly, with the price of rare earth increasing, overseas mines started exploration of the material and put into use products in the end of 2011. Therefore, the supply of light rare earth was sufficient. Furthermore, some manufacturing industries were also impacted by the flood in Thailand in the end of 2011.

As for why the price of rare earth saw sharp increase in 2011, Asian Metal expressed that: Firstly, higher price indicated values of rare earth as strategic resources. Secondly, the government required high standard for rare earth separation with strict inspection in order to protect the environment. Lastly, the production cost of rare earth increased as the resources tax went up by RMB0.4-60/t, according to the Resource Tax Temporary Regulation from November 1, 2011 announced by the State Council

The two sides also talked about the government’s plan to use specific invoice for rare earth. Asian Metal confirmed that the policy has not carried out. Hideaki Fujiwara asked if the policy would help buoy the price of rare earth and Asian Metal thought that the specific invoice was mainly to regulate Chinese rare earth market.

As for the future markets of neodymium and rare earth in 2012, Erin Zhao thought that the rare earth market experienced ups and downs in 2011 and it is expected to rejuvenate in 2012. Japan is one of the exporters for China. It is reported that Japanese automobile industry has been decreasing or even stopped the consumption of NdFeB magnets, but Mr Zhuang said that it still needs time to put into practice.

Tsuneo Maeda, Hideaki Fujiwara and Mr Zhuang were thankful to Asian Metal for the information and they want to promptly communicate about the market dynamics in the future. They also hope that Asian Metal can see further development.

Hitachi Medical, a medical institution with a 100-year history, was founded in 1949 and it is committed to research and development of image medical devices for ultrasonic, CT and nuclear magnetic resonance. Its products have entered Chinese market early. Shanghai Huashan Hospital imported CT-H2 in 1978, which is the first CT medical device in China. Hitachi Medical also has set up many branches in Beijing, Suzhou and Guangzhou.