• Over 3 000 positive reviews
  • Over 46 million magnets in stock
The product was added to your shopping cart.
Go to shopping cart

What is the development of neodymium magnet prices?

Table of Contents

Price trend 2021 / 2022

Various factors have contributed to skyrocketing prices for neodymium during the past 12 months. Among them:
Graph - Price trend of the raw material neodymium
Price trend Neodymium June 2017 – June 2022 (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.
Graph - Trend of the RMB exchange rate against the USD
Price trend USD / CNY June 2017 – June 2022 (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 first lockdown in 2020, higher raw material costs increased further due to the additional currency impact. It is currently around -3% compared to 2020 (as of 17 June 2022) and is added to the purchase price by the suppliers, as they, in turn, pay for preliminary products and production costs in the local RMB currency. Since the end of April 2022, the US dollar exchange rate has been able to recover against the Renminbi Yuan due to the Shanghai lockdown and the resulting reduced economic output, among other things. Should this positive development continue, the currency impact would no longer be a factor in the future.
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 update this FAQ page.

The situation in June 2022
The raw material price situation has still not improved. After the price for one tonne of neodymium briefly fell to about 1,1 million RMB, it has levelled off again at the consistently high amount of 1,2 million RMB. This still corresponds to a threefold increase compared to 2020.
As written in our last update from February 2022, we increased our purchasing volumes early on to counteract potential delivery delays. With over 50 million magnets, our inventory is currently at an all-time high. We can compensate well for the emerging problems due to the two-month lockdown in Shanghai and have very good delivery capabilities for almost all products.
Occasionally, certain items may be briefly sold out as a result of disproportionate sales. But here, too, our forecasting tools come into force early and trigger the necessary reorders from our Chinese manufacturers. The first effects of the Shanghai lockdown are expected to be felt at the end of July and will last for several weeks. However, thanks to our proactive inventory planning, we can face them with composure.

The situation in February 2022
At 1,285 million RMB/tonne, the neodymium price has currently reached its highest level in the last ten years. After the price had remained at a fairly constant level between 2013 and the middle of 2020, it has risen by almost 250% since the outbreak of the pandemic. Although it is difficult to predict the future trend, we do not see any major relief in the intermediate term due to the increased global demand for neodymium, but rather further low-level price increases.
International logistics chains also remain strained, so that container prices continue to linger at an elevated plateau due to a mismatch of supply and demand. Our purchasing team coordinates our deliveries on a daily basis and, if necessary, we split our bulk deliveries into several containers so that the magnets reach our warehouse and your place as early as possible.
With regard to the potential negative effect of the Olympic Games in Beijing on the procurement process, we have already taken precautionary steps and significantly increased our procurement volumes.

The situation in October 2021
The price increase for neodymium has continued unabated and reached an interim peak in 2021 at the end of October. Aside from increased demand, a major reason can be seen in the fact that, due to the Dual Control of Energy Consumption policy to achieve energy and ecological goals, the energy supply of companies is curtailed and thus production output is reduced.
In addition, there are still significant bottlenecks concerning ocean freight. Many cargo ships reach their destination ports too late, and loading and unloading the ships take more time than usual. In addition, the increased demand for consumer goods is leading to a shortage of shipping containers and this is expected to continue until the spring of 2022.
We are closely monitoring these developments and, as a result, ordered large quantities of magnets early on. We are in constant contact with our logistics service providers to ensure the goods arrive as quickly as possible and to be able to deliver large orders within a reasonable time.

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.
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.