From the supply perspective, which is more important for the NdFeB Magnets manufacturer?

　　From the supply perspective, pushed by the rare earth policy, raw material supply constraints of the upstream inhibit downstream capacity out.

　　According to China rare earth oxide mining index and strict implementation of calculating in 2011, Chinese manufacturers can only supply 55000 tons of neodymium magnets, which is lower than the global demand for 100000 tons of last year, with the imbalance of supply and demand.

　　In addition, the high-end NdFeB patent is controlled in five domestic producers, patent barriers limit the other domestic NdFeB magnets production's outputting, and the patentee has no capacity substantially out of the program.

　　Finally, the NdFeB Magnets industry (including Sintered NdFeB magnets) attributes are distinct from the semiconductor industry, panel, the proportion NdFeB Magnets manufacturer's depreciation cost is 3%, while the semiconductor, panel depreciation accounted for 20%, for the NdFeB Magnets manufacturer, profitability is more important than capacity utilization.

　　The imbalance between supply and demand is the price logic basic, and the leading firm's value is obivious.