Reasons for the rise of NdFeB magnet raw material prices:
1. Metal Nd is the main material of producing neodymium magnets, which contain 50% of the cost of NdFeB material. China is the main Nd metal production countries. However, China’s rare earth industry economy has declined since 1996, for the reasons that China’s ability of rare earth refining increased too fast. This caused the attention of the Chinese government, so government intervened and introduced a new policy called Limiting value-insured Transportation Policy. In recent years, the interaction between market and government intervention has intensified the price fluctuation of metal Nd and influenced the profit margin of NdFeB industry.
2. According to China Merchants Securities in-depth industry research, the supply of praseodymium and neodymium had a huge gap (3000 tons in last year, and this year may reach to 8200 tons). This situation somehow reflects the imbalance between supply and demand. The phenomenon of stopping production because of the lack of raw material begins to appear in the NdFeB magnets industries. What’s more, the price of downstream neodymium begins to increase. It is indicated that the industry will suffer from the shortage of praseodymium and neodymium, which will increase the bargaining power of NdFeB magnets.
3. China’s capital construction demands and environmental regulations increase the price of neodymium raw material and rare metals: due to the increased demands of China’s capital construction and the impact of environmental regulations, the international prices for rare metals which are used as special tools and magnets have increased. The supplies of rare metals are being tightened. The demand sides in China are increasing their inventory. This is also the reason why NdFeB magnet raw material price is increasing.
4. Ganzhou district environmental verification: from May 28th to June 12th, the factory price of Praseodymium-Neodymium Oxide has increased. The factory price of Praseodymium-Neodymium alloy has increased. Terbium oxide has increased. Gadolinium oxide has increased. Many industry insiders said that the rise in the price of rare earth material was mainly due to the environmental verification in Ganzhou district. Most rare earth separation companies stopped production. As a result, the supply decreased. Especially some main rare-earth oxides, they have a supply crunch. The upstream manufacturers are reluctant to sell, and the amount of downstream inquiries has increased. Therefore, the price of magnet raw material has risen.

---Posted by NdFeB Permanent Magnets Manufacturer China Rare Earth Magnet Limited on 20180622

Tags: NdFeB magnets, neodymium magnets, permanent magnet, magnet manufacturer, China magne