Galaxy assumes higher world prices for rare earth metals

China's Galaxy Magnets reports that rare earth metal prices are expected to rise based on investor relations information. The company believes that the scarcity of rare earths and the consolidation of the rare earths industry in China will allow it to manage prices in the global market.

Galaxy Magnets, established in 1993, specializes in the research, development and production of NdFeB magnet and samarium-cobalt magnet. It is the world's largest producer of magnetic powder in the field of rare earth metals. Galaxy Magnets and its subsidiary Leshan Galaxy Yuantong saw net profit growth of 59.67 percent in the first three quarters of this year on an annualized basis, according to the securities.

More than 90 percent of the company's products are sold to developed countries such as Japan, Korea, European Union, USA, Canada, Taiwan and others. The main clients of the company are well-known global brands, including Nidec, Sony, Samsung, Mitsumi, LG, Delta, Jonson Electric and many others.

NdFeB magnets are mainly applied in mini motors for HDD, DVD, CD-ROM, stepper, synchronous, brushless and other motors. Samarium-cobalt magnets have excellent properties of high coercive force and remanent magnetization, providing high magnetic energy to the product with chemical and temperature stability. Samarium-cobalt magnets (SmCo5, Sm2Co17) are widely used in aviation, aerospace and military electronics, as well as in the petrochemical industry and various sensors.