• Customer service in your language
  • Over 35 million magnets in stock

FAQ - Frequently Asked Questions

What is the development of neodymium magnet prices?

Table of Contents

Price trend 2020 / 2021

Various factors have contributed to skyrocketing prices for neodymium during the past 12 months. Among them:
Price trend Neodymium July 2020 – July 2021 (Source: )
Price trend Neodymium July 2020 – July 2021 (Source: tradingeconomics.com)

A sharp increase in demand for neodymium magnets

In sectors such as electric vehicles and wind power, which require neodymium magnets in their products, demand has risen sharply. These efforts, aimed towards energy transition, are partly responsible for the increased price of neodymium magnets.

Rising transportation costs

The surge in online trade due to Covid-19 has led to a massive increase in demand for container transports by ship from China. In addition, cargo capacities for passenger aircraft have collapsed due to a lack of flights. As a result of these changes, transportation costs are rising.
Price trend USD / CNY July 2020 – July 2021 (Source: )
Price trend USD / CNY July 2020 – July 2021 (Source: tradingeconomics.com)

A rising RMB exchange rate compared to the USD

As is customary in international purchasing, our orders placed with Chinese manufacturers are settled in US dollars. However, since the Chinese currency RMB (RMB = Renminbi Yuan) has developed significantly stronger against the US dollar in the course of the rapid recovery of the Chinese economy after the lockdown last year, already raised raw material costs are further increased by the additional currency impact. It is approx. -8% compared to last year (as of July 12, 2021) and is added to the purchase price by the suppliers, as they, in turn, pay for preliminary products and production costs in the local currency RMB. At this point, it is still unclear when the positive economic data coming from the US will benefit the exchange rate.
You can find more detailed information on the price increase, for example, in these online articles:

Implications for supermagnete and for you as a customer

We do strive to keep any upward price adjustments as moderate as possible and to immediately pass on any reductions in price. Even in this difficult economic situation, we are doing everything we can to offer you the best possible prices:
  • We continue to buy large volumes per magnet so that you can benefit from the economics of scale.
  • Through constant monitoring of the three cost drivers - raw material price, transportation costs and exchange rate - we purchase at the optimal price for you under the given circumstances.
As soon as the pricing situation changes, we will inform you promptly on this FAQ page.

The situation in March 2021
The raw material neodymium is the key factor for neodymium magnets in terms of costs. The sharp price increase for neodymium and other rare earth metals needed for the manufacture of neodymium magnets therefore affects the prices of our raw magnets and pot magnets. We have to take this development into account and increase the prices of our neodymium magnets.

The situation in July 2021
After the price for neodymium had decreased in the meantime, raw material costs rose again significantly since the beginning of July 2021. In addition, the new COVID-19 outbreak in Yantian in June 2021 put even more strain on the capacities of the surrounding ports, so that the freight costs for a 40-foot container increased four- to sevenfold within a year. Thanks to long-term logistics cooperation, we can fall back on reserved container capacities so that product availability is guaranteed under the current conditions.