AEC Industrial Magnetics Manufacturing

 
4699 Interstate Drive
Cincinnati, OH 45246

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A quick update for you this week:  AEC Magnetics' permanent magnetics suppliers seem to be holding prices in check after last week's severe price increase.  I've spoken to our suppliers and they see no reduction in supply, and for now, no price increases.  I'll keep our lines of communication open and report back to you any changes.  Please give me a call if you would like a quote, and please consider locking in current pricing.  Thank you for your business.

-Bill Klaus

President, AEC Magnetics

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bill aec price increaseI'm Bill Klaus, president of Cincinnati, Ohio-based AEC Magnetics.  Thank you for visiting AEC's website. My employees and I are grateful for your interest in our magnetic solutions. Today, I'm raising the cost of all AEC permanent magnetics products.    I would like you to understand why,  and give you some ideas to help offset these increases.

In the past week, I've received e-mail messages from every one of our China suppliers informing us of 30- to 50-percent increases in all permanent magnetics costs across the board.  Most all cite the U.S. China trade standoff as reason for the price increases, but there is more to this story.

That China is sitting on the Fort Knox of rare earths is news to no one. Mining and processing magnetic materials is dirty, harsh business, and the world's been happy to let China do the heavy lifting. It is also no secret that whoever owns the mining and processing controls the product--in this case, materials critical to defense, missile guidance systems, satellites, cars, windmills and other green industries. Therefore, no government or manufacturer is surprised that China has, for nearly 20 years, mined and processed more than 90 percent of the world's rare earths. They also know the U.S. mines none.  (The U.S. facility, in Mountain Pass, California, closed in 2002).  

china rare earths drudgeFor the most part, China has acted fairly in both pricing and production. A notable exception was a 2012 trade dispute in which Japan, the E.U. and the U.S. filed formal complaints against China with the World Trade Organization. This squeezed supplies and raised permanent magnet prices worldwide. Seldom-reported factors also disrupt pricing: We have monitored slowdowns in China's manufacturing, mining and production; plant closures, plant certification issues, biannual quota revisions and a major port closure have all affected permanent magnetics prices in the past year.

 

AEC Magnetics has always kept its customers informed of permanent permanent magnet stack aecmagnetics pricing.  We are controlling some of our costs to help ease the permanent magnetics increases. We also suggest you buy in bulk, where the prices are best, and consider blanket ordering, so you can lock in today's prices and allow us to release your order on the schedule you wish. And we suggest consulting with us to make sure you're using the right magnet for the right job.  We may be able to suggest a less-expensive magnet for your application.

That's what we can do and you can do, but what can the world do, if China continues to hold all the cards?  During the 2012 trade impasse, it was surprising to see alternate sources ramp up and supply some of the critical permanent materials China was holding. If open, reliable new sources of permanent magnetic materials are available, count on AEC to bring them to market.  Meantime, we've developed relationships with tremendous, trustworthy China sources upon whom we depend to bring us the very best quality magnetics, reliably.  

AEC has supplied customers with magnetic solutions and industrial magnets since 1961. Trade war or not, we will continue to do so, one quality magnet and magnetic solution at a time.  If it's magnetic...it's AEC. 

 

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china usa aecSince I've been flooded the past few days with price increase notices from our China  permanent magnetics suppliers, I've taken steps to soften the blow for AEC permanent magnetics customers.  As I buy raw materials and metals myself, I understand how sudden, stiff price jumps affect my business and therefore am sensitive to how this affects yours. While I am raising permanent magnetics prices beginning immediately, I am also leveraging our long-time relationships with trusted sources, negotiating the best prices possible. I will not sacrifice on quality, period. I'm also making smart use of our inventory, shifting around some order schedules and doing whatever is possible to hold prices as much in line as possible.  China makes most all of the world's permanent magnetic material, and they set the price. I do everything possible to control what I can to manage these ups and downs.      PotMagnets 

You may find some of these tips helpful in saving money, such as buying in bulk.  It can save a tremendous amount of money.  Call me,  or ask anyone here, where the price break points for your permanent magnets. We will work with you to find some savings buying in bulk.  Consider advancing your order schedule.  While we can't predict future prices, we do know that locking in today's price could pay off. Consider blanket ordering. Purchase now, lock in today's price, and allow us to hold your order and release your magnets on your order schedule.  You're not on the hook for unpredictable prices, you don't have to store the inventory and you could save ordering in bulk at today's price. This hands-free, worry-free method is very popular for AEC customers. 

flex magnetic strip 300Finally, consider calling us to discuss your application before you buy.  A magnet that doen't work in your application is a waste of money. I've been in magnetics for almost 40 years.  I know how magnets behave. I can't tell you how helpful, and potentially cost-saving, it is, to order the correct magnet. I will take all the time you need to discuss your application, then suggest the correct holding power and size. Sometimes, I even have to tell customers magnets aren't the best solution at all. I don't want you to spend money on permanent magnets--especially expensive ones--that are not right for the job, so please,  call or e-mail us for the most accurate quote on price and availability.  Our China magnetics suppliers are all long-time friends of ours who have unrelentingly provided excellent value and top-grade quality magnets. We are confident that AEC's supply and quality will remain unchanged due to our very long and respectful relationships with only the best suppliers. 

Bill Klaus AEC President DeskAnd it's not all about the US-China trade war. China mines and processes about 90 percent of the world's Rare Earth Elements, and  trade war saber-rattling is nothing new in magnetics. Disruptions and slowdowns in China’s manufacturing, mining and production; plant certification issues;  port closures and on-again, off-again tariff troubles all factor into permanent magnetics price hikes. And, because China's government sets production quotas, markets react, moving prices.   

AEC does not anticipate product shortages at this time. We can’t predict at this time whether permanent magnetics prices will continue to rise, level off, or fall. The one thing I'd like to leave you with is I refuse to sacrifice on quality, I've developed strong relationships with our China suppliers and I'm working dilligently to mitigate the China price increase to my customers.

Let me take a moment here to tell you how grateful we are for your business. We appreciate the opportunity to serve you. Please contact us with any questions, and if you would like a quote, I will make sure you get one quickly. 

Bill Klaus

President, AEC Magnetics

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china us relations(Bloomberg) -- China's latest retaliation against U.S. tariffs is set to prove largely benign to commodity trade flows as Beijing runs out of raw materials to target.  

Some products targeted by China tariffs were already squeezed by the long-running trade war. Meanwhile, other politically sensitive items, including soybeans, have been subject to top-end levies of 25% since last year.

Even duties on U.S. rare earths target only a single miner that exports small quantities of the materials used in magnets for electric motors. To read the rest of this Bloomberg article on Yahoo Finance, please click here. 

AEC Magnetics continues to enjoy robust, long-term relationships with its permanent magnetic material suppliers, so give us a call and place your order for strong, durable permanent magnets available in thousands of sizes, shapes and strengths.  If it's magnetic...it's AEC!

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oil slick Barrier reefThe latest permanent magnetic materials team to claim success in protecting isles, wildlife and beaches from oil spills has just been announced this month.  A research team led by led by Dr. Marcus Halik developed iron oxide particles that can attract hydrocarbons. These magnetic particles, and their shells, are dumped into slicks—then removed and cleaned in an environmentally friendly manner.   

As we observe Earth Day,  AEC Magnetics is enthusiastic about advancements in similar solutions that use magnetic materials to scrub oil slicks and remove other pollution from water sources.

Researchers at the University of Calgary announced in January it developed a super-sponge for soaking up aquatic oil spills.  The non-toxic, biodegradable material consists of magnetic nanostructured elements that allows for salvage of spilled oil.   

Several years ago, MIT found that magnetic nanomaterials are terrific oil-and-water separators.  The MIT researchers mixed repellent ferrous nanoparticles with oil, which was then separated from the water using magnets. Afterward, the nanoparticles could be magnetically removed from the oil and reused. MIT researchers say there is a lot of research on separating water and these so-called ferrofluids—fluids with magnetic nanoparticles in them—leaving the door open to infinite possibilities, including directing the flow of spills. 

Check out what a ferrofluid looks like by going here.

 

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