AEC Industrial Magnetics Manufacturing

4699 Interstate Drive
Cincinnati, OH 45246

Buy Permanent Magnets? Read this!
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Buy Permanent Magnets? Read this!

Permanent & Electromagnets for Automation | AEC Magnetics

horseshoe assy red 300Consider locking in your permanent magnet order at current pricing. China announced this week it will slash rare earths production to just 70-percent of last year's production, AEC sources in China said. "China announces rare earths quotas twice a year," said Bill Klaus, president of Cincinnati, Ohio-based AEC Magnetics. "Our China suppliers inform us, and we did expect some reduction this week, but 70-percent is much more substantial than anyone expected.  There could be some price volatility as a result."

 fanny aecFanny, China supplier to AEC Magnetics Why China Matters:  China produces more than 90-percent of the world's permanent magnetic materials. These are essential for defense systems, satellites, wind turbines, energy efficient cars, audio and medical equipment. Permanent magnetics prices have been stable and even on the low side since 2011, the year China refused to export all magnetic materials. Higher, volatile permanent magnetics prices permeated the market before flat-lining upon the World Trade Organization resolved the matter. Since then, supply and demand have not been in synch and prices have been flat. 

4200 series 300AEC 4200-series neodymiumsWill you pay more for magnets? In short, maybe. No one knows for sure how this quota cut will affect prices.  An enormous production cut would generally signal higher prices, but Mr. Klaus pointed out potentially offsetting factors. "My sources caution that, while hefty, this reduction is a six-month directive. The full-year quota is still as high as 20-percent higher than 2017."   Mr. Klaus also said such news from China encourages smaller rare earths producers to increase production.  The second-highest producer, in Australia, has shown the ability to ramp up production and take some pressure off the market, but it is not yet large enough to offset China's effect on pricing.  

bill klaus aec magneticsBill Klaus, AEC presidentBottom line:  "China is still the behemoth of rare earth elements and permanent magnetic materials," he said.  "Because it can shake up the market, we share with our customers what our China suppliers are saying so our customers can accelerate or delay purchases as necessary."   Call AEC Magnetics today for pricing and availability of AEC permanent magnets, electromagnets, magnetic tools, power supplies and anything magnetic.  

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