Magnetic materials are important electronic information materials, which are widely used in household appliances, automobiles, computers, communications, medical, aerospace, military and other fields. Generally, according to the coercivity of materials, magnetic materials are classified into permanent magnet materials and soft magnetic materials. Permanent magnetic materials can be roughly divided into carbon steel, AlNiCo alloy, ferrite permanent magnet and rare earth permanent magnet. The performance parameters of all kinds of magnets are different, and their application fields have different emphasis. At present, the output of ferrite permanent magnets has accounted for more than 90% of the total output of permanent magnets. Soft magnetic materials are mainly divided into ferrite and metal soft magnetic materials. Ferrite has a larger soft magnetic share. In recent years, with the vigorous development of China's economy and the dramatic growth of world demand, China's magnetic material industry has received tremendous opportunities for development. The world magnetic material industry center has been transferred to China, and the annual growth rate of China's magnetic material industry has exceeded 20%.

In 2005, the global output of ferrite magnetic materials was 910,000 tons, while China's output was 450,000 tons, accounting for 49.45% of the global output. It is estimated that by 2010, the global output of magnetic materials will reach 1.42 million tons, and that of China will reach 550,000 tons, accounting for 38.7% of the global output.

At present, the common problems in China's magnetic materials industry are low-grade products and small-scale enterprises. Most of the products are concentrated in the middle and low grades, mainly relying on price advantages and weak profitability. Permanent magnet ferrite is mainly loudspeaker magnet, and the quality of middle and high-end motor magnetic tile is unstable. Soft magnetic ferrite concentrates on consumer products, and industrial magnetic cores produce less. The high-end products in the industry are almost monopolized by Japan, while 30% of the high-end products in the international market account for 70% of the market share. The market price of our products is generally lower than 50% of the international market. In terms of scale, the annual sales of TDK04 in Japan alone amounted to 8.5 billion US dollars, far exceeding the domestic industry sales. So China is a big producer of magnetic materials, but it is not a powerful country.

Although production growth will decline in the future, there will be greater demand for products with more technology content. This is because magnetic materials are developing towards high frequency, high permeability and low loss, and magnetic devices are developing towards miniaturization, chip and surface mounting to adapt to the development of downstream electromechanical, communications and IT industries.