Why are neodymium magnets so expensive?
The price of neodymium magnets, so-called „super magnets“, is comparatively high compared to other types of magnets.
This is because the raw materials required for this (including neodymium) are almost exclusively mined in China. The country can therefore set the price and reduce the available quantity.
Price increase for neodymium magnets in 2011
In 2010, China reduced its rare earth export quota by around 60%. In the following year, the price of neodymium rose sharply. This had a direct impact on the prices of neodymium (NdFeB) magnets.
China itself has an estimated one-third of the world’s neodymium deposits. However, most other countries have given up mining the rare earth metal. The quasi-monopoly, China, kept prices so low that mining was unprofitable for many countries. Due to the lack of competition, the world market price for the rare earth metal „neodymium oxide“ can therefore continue to be freely determined by China.
Price increase for neodymium magnets in 2021
About 10 years after the last strong price increase, a significant increase in the price development of neodymium can also be reported in 2021.
Before that, prices had remained stable for a long time, but the price of raw materials has increased significantly since October 2020. It is currently not possible to foresee how the development will continue in the near future.
Neodymium magnets are almost exclusively transported from China to Europe by ship.However, the demand for container capacities has increased so strongly in recent months that the prices for this have increased accordingly. The shipping costs have a direct effect on the imported goods . Aswell on neodymium magnets.
We always offer our customers the best possible price
We at magnets4you are always busy offering you our products at the best possible price. To this end, we work out fair price scales for all of our categories (e.g. ringmagnets, blockmagnets or discmagnets), with which we can accommodate you when purchasing larger quantities.
However, we ask for your understanding that we have to prepare our offers. Especially for custom-made products, with relatively short deadlines (usually 1 week). The development of raw material prices can often not be predicted.