As one of main raw material of ferrite magnets, Iron Oxide occupies 85wt% in the entire raw material. Ferrite magnets with different grades have its specific demand on Iron Oxide. The source of Iron Oxide includes Iron scale and Ferric Oxide prepared by Ruthner process. Both Ferric Oxide and Iron scale are by-product of the upstream steel industry. Iron scale is typically referring to the scaly oxide layers which peeled off from steel during its heating or rolling process. It is necessary to preprocess the Iron scale to ensure magnetic properties of ferrite magnets. Iron scale does not possess authoritative open market price at present.
As a conventional inorganic compound, Ferric Oxide price trend is more convincing to downstream customer. Price movement of Iron scale and Ferric Oxide is determined by upstream steel industry. Geopolitics, iron ore price, steel capacity, environmental regulations, and recycling strategy will result in the shortage of Iron scale and Ferric Oxide. Unlike other types of permanent magnets, supply shortage of Iron scale and ferric oxide will also act on the product quality.
