According to data from the National Bureau of Statistics (NBS), the national elevator production in November 2023 was 128,000 units, compared to 134,000 units in the same period last year, representing a YoY decrease of 9.2%. This downward trend is closely related to the multiple challenges faced by the elevator industry in recent years, particularly the changes in market demand for energy-efficient elevators, which have had a significant direct impact on the rare earth permanent magnet industry.
Each energy-efficient elevator requires 6 kilograms of NdFeB permanent magnet materials, so changes in elevator production have a notable impact on the demand for this critical material. This year, as the real estate sector experienced a severe downturn, the elevator market, especially the production of energy-efficient elevators, was also affected. This interconnection within the industry chain has led to a significant reduction in the demand for NdFeB permanent magnets, exerting pressure on related companies and investors.
Although the government has introduced a series of supportive policies to boost the real estate sector, such as easing home purchase restrictions and lowering loan interest rates, aiming to stabilize the market, the effects of these measures appear to be limited. Currently, the market situation remains relatively stable. Industry experts generally believe that as the number of new housing projects gradually decreases in the future, the demand for installing energy-efficient elevators will inevitably be suppressed, which will, in turn, affect the market demand for NdFeB permanent magnet materials.
In summary, the trends in the elevator industry not only reflect the overall trajectory of the construction sector but also indicate the potential challenges and opportunities that the rare earth permanent magnet industry may face in the future. Finding new growth drivers in a changing market environment has become an urgent issue for both enterprises and policymakers.
