AEC Industrial Magnetics Manufacturing

 
4699 Interstate Drive
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AEC Permanent Magnetic Price Update
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AEC Permanent Magnetic Price Update

Permanent & Electromagnets for Automation | AEC Magnetics

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.