FAQ - Frequently Asked Questions
What is the development of neodymium magnet prices?
Table of Contents
Price trend 2020 / 2021Various factors have contributed to skyrocketing prices for neodymium in recent months. Among them:
A sharp increase in demand for neodymium magnetsIn sectors such as electric vehicles and wind power, which require neodymium magnets in their products, demand has risen sharply. These efforts, aimed towards energy transition, are partly responsible for the increased price of neodymium magnets.
Rising transportation costsThe surge in online trade due to Covid-19 has led to a massive increase in demand for container transports by ship from China. In addition, cargo capacities for passenger aircraft have collapsed due to a lack of flights. As a result of these changes, transportation costs are rising.
A rising RMB exchange rate compared to the USDAs is customary in international purchasing, our orders placed with Chinese manufacturers are settled in US dollars. However, since the Chinese currency RMB (RMB = Renminbi Yuan) has developed significantly stronger against the US dollar in the course of the rapid recovery of the Chinese economy after the lockdown last year, already raised raw material costs are further increased by the additional currency impact. It is approx. -6% compared to last year (as of March 8, 2021) and is added to the purchase price by the suppliers, as they, in turn, pay for preliminary products and production costs in the local currency RMB. However, the positive economic data in the US should improve the situation in the near future.
You can find more detailed information on the price increase, for example, in these online articles:
Implications for supermagnete and for you as a customerThe raw material neodymium is the key factor for neodymium magnets in terms of costs. The sharp price increase for neodymium and other rare earth metals needed for the manufacture of neodymium magnets therefore affects the prices of our raw magnets and pot magnets. We have to take this development into account and increase the prices of our neodymium magnets.
We do strive to keep any upward price adjustments as moderate as possible and to immediately pass on any reductions in price. Even in this difficult economic situation, we are doing everything we can to offer you the best possible prices:
- We continue to buy large volumes per magnet so that you can benefit from the economics of scale.
- Through constant monitoring of the three cost drivers - raw material price, transportation costs and exchange rate - we purchase at the optimal price for you within the given framework.