AEC Industrial Magnetics Manufacturing

4699 Interstate Drive
Cincinnati, OH 45246

Price Increase
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Price Increase

Permanent & Electromagnets for Automation | AEC Magnetics

Bill Klaus AEC President Desk A message from AEC president Bill Klaus:

I’ve just received word that, beginning immediately, permanent magnet prices will rise. This is due to several significant factors that affect the China permanent magnetics industry. As you are probably aware, China produces most all of the world's permanent magnetics.  I am sharing with you, below, the letter I received from one of AEC Magnetics' most trusted China suppliers because it sums up the situation succinctly and accurately, 

  • Many China rare earth smelters stopped production this month to modify manufacturing facilities;
  • The world’s largest rare earths refinery reduced production this month due to lack of government approval; 
  • Customs closed at an important Chinese port. This prevents China from importing alternate materials from Myanmar;  
  • Several China separation plants closed this month after filling their production quotas.

 Dear Bill,

Some of our clients care about the NdFeb magnet price tendency recently,as they got some news also from the internet.So probably you will be also interested in...the information below :

  1. In December, part of factories of rare earth smelting separating manufactures will stop production for internal rectification, which will lead to 1,500 tons decreasing of the monthly production of Praseodymium oxide neodymium.
  2. The world’s largest rare earth refinery, Lynas plans to reduce production 400 tons of Praseodymium oxide neodymium in December due to lack of production approval.
  3. Myanmar mixed rare earth minerals can’t be imported to China as Yunnan Tengchong Customs closed, which have huge impact on the supply of rare earths especially the medium and heavy rare earth material. At present, the Chian-Myanmar port has not yet to normal. It is estimated that the production of Praseodymium oxide neodymium will reduce about 450 tons.
  4. Some rare earth separation plants have completed the rare earth aims at the end of the year, and the output has been reduced. Some of them have stopped production inspections. The shutdown of some rare earth enterprises is also a supporting factor for rare earth prices.

All the above statistics show that the global production of Praseodymium oxide neodymium will decrease by about 2,350 tons in December. At present, monthly consumption of Praseodymium oxide neodymium is about 5,000 tons, and the output is reduced by nearly 50%, which will inevitably support the price increase of Praseodymium oxide neodymium.

Just for your reference, the NdFeb magnet price will go up more or less in this month.

 Best Regards...

AEC Magnetics anticipates no product shortages at this time but encourages bulk and blanket orders to guarantee pricing. We will continue to monitor the permanent magnetic materials market closely and report news to you our website. With more than 90 percent of the world’s permanent magnetic materials mined and processed in China, this, of course, is beyond our control, but our strong and long relationships with our China suppliers allows us to give you a heads-up on price alerts, trade issues and industry trends. Follow such news here, in our blog section.

Thank you 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

Cincinnati, Ohio, USA