HS Code:
Ferrites (HS Code: 8504.90) are ceramic compounds made from iron oxides combined with other metallic elements, widely used in electronics for their magnetic properties. They are essential components in transformers, inductors, and other electromagnetic devices, particularly in telecommunications, automotive, and consumer electronics industries. Ferrites are categorized into soft ferrites (used for high-frequency applications) and hard ferrites (used in permanent magnets). Global trade in ferrites is driven by the demand for energy-efficient electronics and advancements in technology.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 1.2 billion
48% of total trade of total trade
Increasing
USD 400 million
16% of total trade of total trade
Stable
USD 250 million
10% of total trade of total trade
Increasing
USD 200 million
8% of total trade of total trade
Increasing
USD 150 million
6% of total trade of total trade
Stable
Average Rate
5.2%
Highest Rate
12% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand for ferrites in electric vehicles (EVs)
Increased production and trade due to the growing adoption of EVs and hybrid vehicles requiring ferrites for power electronics.
2021-2023
Shift toward miniaturization in electronics
Higher demand for small, high-performance soft ferrites in smartphones, wearables, and IoT devices.
2020-2022
Supply chain disruptions due to geopolitical tensions
Price volatility and delays in ferrite exports, particularly from China, due to trade restrictions and raw material shortages.
2022
The European Union updated its RoHS directive, mandating lower levels of hazardous substances in ferrites used in electronics, impacting exporters to the EU market.
June 2023
Increased production costs for non-compliant manufacturers but potential market advantage for eco-friendly producers.
China introduced tighter controls on rare earth exports, critical for ferrite production, citing national security and environmental concerns.
October 2022
Global price hikes for ferrites and supply concerns for manufacturers outside China, prompting diversification of supply chains.
A bilateral agreement reduced tariffs on electronic components, including ferrites, to strengthen supply chain resilience between the two nations.
March 2023
Boosted trade volumes between the US and Japan, providing cost benefits to manufacturers and consumers.