The price of neodymium magnets

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.

The current price development can be followed e.g. here or here A permanent increase in the neodymium price can be clearly seen.

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.

This re-newed strong increase is reinforced by the freight costs, which have also risen sharply due to the corona pandemic.
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.

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