NdFeB Magnet Production Up 14.7% in March; Market Outlook Cautiously Optimistic

Highlights

• China’s neodymium-iron-boron magnet production increased 14.7% year-over-year in March, reflecting a cautious market rebound.
• Large-scale manufacturers are consolidating market share, while smaller firms struggle with order compression and reduced competitiveness.
• April growth is projected, but manufacturers maintain a ‘wait-and-see’ approach due to uncertainty in policy and end-user demand.

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According to Shanghai Metals Market (SMM) analyst reporting on March 28, 2025, China’s production of neodymium-iron-boron (NdFeB) rare earth permanent magnets surged 14.7% year-over-year in March, reflecting a rebound in demand across end-use sectors. The report (opens in a new tab) cites “favorable policies” as key drivers of the uptick, though order volumes still fall short of industry expectations. This nuanced improvement suggests a recovering, but not fully revitalized, downstream landscape.

This analysis highlights a growing divide between large-scale magnet manufacturers and their smaller counterparts. Top-tier companies, bolstered by brand recognition and technological advantages, continue to consolidate market share, while small- to mid-sized firms face “order compression” and dwindling competitiveness. This shakeout hints at an ongoing industry consolidation as survival becomes increasingly tied to scale and innovation. It’s Darwinian capitalism with only the biggest, most capable, and capitalized likely to win according to this view.  Of course, in some cases, Chinese producers have the power of the state’s treasury behind them.

The market outlook, while tinged with optimism, remains restrained. SMM notes a prevailing “wait-and-see” sentiment among manufacturers, driven by uncertainty around future policy shifts and end-user demand. While April is projected to deliver steady growth, analysts caution that approaching saturation in some sectors may temper momentum. The article leans factual but implies confidence in policy-led recovery, a possible signal of bias toward state-driven industrial optimism.