The price of magnetic materials has been increasing since the second half of last year. In order to find out the effect on Dongyang’s magnetic industry caused by this inflation, the Dongyang investigative team of the National Bureau of Statistics (NBS) visited Hengdian Group DMEGC Co., Ltd., Zhejiang Kaiven Holdings Group, Dongyang First Magnetics Co., Ltd., and Zhejiang Magnetic Material Industry Association.

The research shows that the continuous rising price of raw materials has made a significant impact on the magnetic materials manufacturers in Dongyang. For big enterprises with ample funds and diversified industries, although the magnetic industry is operating at a loss, they can make up for this loss in other sectors, whereas medium and small-sized enterprises, without sufficient funds and information, have sustained damages because of the extravagant prices. According to Kaiven Group, some small enterprises have transformed their business from making magnetic products to selling raw materials.

As for the investigative team, they suggest that the improvement of the current situation not only requires the government to provide various ways to decrease the harmful influence on magnetic manufacturing enterprises caused by the rising price of the raw materials—including cracking down on speculation and providing interest subsidies and supporting projects—but also requires the companies to seize every opportunity to gain a firm foothold under the circumstances via resource integration, reinforcement of research and development, and improvement of comprehensive strength. (By Dong Chaoyi, translated by Wang Junwen, edited by Kendra Fiddler)