Maglab Magnets has announced that the cost of all rare earth, neodymium magnets has risen by approximately 300%, due to a massive increase in demand and the almost exclusive control of a limited number of suppliers.
Demand for these rare earth magnets has increased dramatically due to the additional requirements for high performance electric motors, such as those found in electric powered cars, and their increasing use in new power generation facilities, such as wind generators, which Maglab Magnets notes have been known to use massive amounts of rare earth metals.
China currently holds a near monopoly on the supply of rare earth magnets, and has in the past been able to produce the magnets extremely cheaply, thus eliminating most overseas competition. Given this secure position in the market, Chinese suppliers have now seen fit to increase the cost of these magnets.
All this means that while Maglab Magnets’ extensive stocks last, prices will be kept the same, but as new stocks are imported a 300% increase in prices will be incurred. These increases will be passed onto the company’s customers.
Maglab Magnets states that it is quite proud of the fact that it has not had any increase in magnet prices since 1999. In order to survive this price increase, however, the company will have no choice but to pass the increase onto its customers once current stocks are exhausted.
Maglab Magnets advises its customers to:
- consider stocking up on magnets they know they will need, as carrying the stock will not be anywhere near as expensive as purchasing the magnets after the new stock arrives
- not rely on any old prices when quoting on products that contain rare earth magnets, as if the magnet is a large cost component in the product, the price may need to rise substantially; and
- to contact Maglab Magnets to determine the quantity of magnets they can get at the current cost, and what the future cost will be for the balance of their requirement.