The following is from a “Rings & Things” catalog article.
Nearly all commercially available “hematite” beads are a
simulated material that is very similar to real hematite. The
simulated material is much easier to produce in detailed shapes
and it looks and feels like the real material.
“Hematine” appears to be a trade name for one of the
commercially available products that is made in the Orient.
“Hemalike” is another name used for the simulated product.
Hematite is Iron Oxide. True hematite lease a red streak when
scratched across a piece of unglazed porcelain. The simulated
products usually leave a gray streak.
The Simulated products are also Iron Oxide. Simon & Schuster’s
Guide to Gem and Precious Stones says "Despite its modest value,
it has been imitated by a ferromagnetic, sintered product,
moulded to look like engraved stones.
Most simulated hematite beads are magnetic, that is, they are
attracted by a magnet.
If you look closely at the hole in a molded bead of simulated
hematite you will often see a smoothly curved hole rather than
the slightly chipped and sharply defined edge of a true drill
hole. The holes are usually molded into the simulated product.