Rare earths are a group of 17 chemical elements of the periodic table considered strategic material for the production of permanent magnets used in many industrial sectors.
In particular, sintered neodymium magnets (NdFeB) are the most popular on the market.
The alternative magnetic materials available can be samarium-cobalt, compressed plasto-neodymium and injected plasto-neodymium (bonded and injection molding), also available on ferrite base, and magnetic materials in aluminum-nickel-cobalt (AlNiCo).
Rare earths prices are currently at the highest levels recorded in recent years and continue to rise. The magnets price, especially in sintered neodymium (NdFeB), after a slight decline at the end of December 2021 is still growing now. In order to minimize the effects of raw material costs, we recommend purchase scheduling to avoid further cost increases.
The situation of Chinese permanent magnet factories is particularly unstable. In addition, the Chinese New Year is next February 1, 2022, and the factories will remain closed for the holidays, resulting in the suspension of production. Colleagues at our Chinese headquarters in Ningbo are monitoring the situation regarding raw materials and the slowdown in production rates on a daily basis, to promptly inform us for new changes.
In order to ensure proper supply continuity, we recommend planning the most urgent orders and sending us the forecasts for year 2022 so as to be ready when rare earth prices return to stable levels.
We remain at your complete disposal for further information on the matter.
Below it’s showed the main raw materials update prices used for rare earth magnets production. The permanent magnets cost as a finished product is inevitably influenced by the trend in the raw materials price, indicated in RMB / Ton in the following graphs.
Dysprosium Alloy – Iron:
Praseodynium – Neodymium Alloy: