Longji Technology: Strontium carbonate prices have surged significantly, and the company has made strategic centralized purchases

Golden Ten Data reported on April 9 that Longci Technology recently stated during an institutional survey that the main raw materials required for the production of the company's magnetic tiles are iron oxide red and strontium carbonate. Iron oxide red is a by-product of the steel production process. As China is a major steel-producing country, iron oxide red supply is relatively abundant and its price remains fairly stable. Strontium carbonate is also an important raw material in ferrite permanent magnet production. Iran holds the world's largest reserves of high-grade celestite (strontium ore). Although domestic celestite reserves are high, their overall grade is low and mining costs are high, which leads to a high reliance on imports. Due to the US-Iran conflict, the price of strontium carbonate has surged significantly. The company continuously maintains a dynamic reserve of raw material safety stock and carries out strategic centralized procurement of strontium carbonate. This is the main reason for the relatively high book value of raw material inventory at the end of last year, which provided us with a valuable buffer period. It is expected that in the near term, the impact on the company's permanent magnet raw material supply and cost will be limited. However, if the conflict continues for a long time and strontium carbonate supply becomes tight, it may put pressure on the stable production and order fulfillment of the entire ferrite permanent magnet industry. We always maintain close communication and coordination with suppliers and customers, and actively evaluate and deploy diversified supply channels to ensure the long-term security and resilience of the supply chain.