Impact of rising rare earth prices on neodymium magnet manufacturers

Although the price of rare earth has dropped recently, it is still higher than the level of the same period last year. Many industry insiders said that NdFeB enterprises have been differentiated due to the sharp fluctuations in rare earth prices. Large-scale NdFeB enterprises have limited influence, but small and medium-sized NdFeB enterprises Boron manufacturers are plagued by rising raw material prices.

The price of rare earths has risen, and the cost pressure of small and medium-sized NdFeB production enterprises has doubled, because "the price of rare earths has skyrocketed, many small and medium-sized enterprises cannot get the goods due to insufficient funds, and even if they have orders, they cannot produce normally. At the same time, downstream customers cannot accept the high cost price. These small and medium-sized enterprises have become a 'sandwich' under the pressure of upstream and downstream."

Most of the customers of small and medium-sized NdFeB magnet manufacturers are also small and medium-sized enterprises. The two parties generally do not sign long-term agreements, and their rare earth inventories cannot keep up with the rate of rare earth price rise. Under normal circumstances, the net profit of small and medium-sized magnet enterprises is generally around 15%. Prices skyrocket, profits may drop to 5%, or even lose money.

The picture is a rectangular countersunk magnet

Unlike small and medium-sized enterprises that are troubled by the cost of rare earths, large-scale permanent magnet material enterprises generally have established strategic cooperation with the upstream and can obtain raw materials at a cost lower than the market price. In addition, large enterprises can also transfer the price increase of rare earths to the downstream. "On the one hand, the company produces customized products and requires customers to sign contracts at real-time market prices; on the other hand, some customers have signed long-term agreements with the company, which include price adjustment mechanisms, such as market prices every quarter. Adjust the sale price once.

The above is about the impact of the increase in rare earth prices on small and medium-sized and large-scale NdFeB manufacturers respectively. The data comes from the Internet and is sorted by the magnet manufacturer Courage Xiaofu and attributed to the industry news column.

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