24 June 2011
Permanent Magnet PRICES / SUPPLY
Prices for magnets based on Nd and/or Dy continue to increase dramatically with Nd oxide prices increasing significantly in the last week in addition to a recent increase of approaching 10% in 1 day. There appears to be no relief in sight with most observers believing prices will continue to increase; this market sentiment is causing suppliers of rare earth oxide to be reluctant to sell without a premium over the market price driving prices even higher. With prices changing for the worse daily, quotes are valid typically for 1 - 2 days only.
Users of rare earths, Magnet Applications included, will not hold any significant stocks over committed orders for fear of a market correction leaving us with over priced stock. In addition to this concern is the cash implication as all suppliers of rare earth require payment with order; no supplier is offering terms.
Our suppliers of magnets and of alloy are currently able to continue to supply although we know that many manufacturers are experiencing problems. Delivery dates for magnets out of our partners' plants in China are beyond those historically seen with plants working to near capacity. There have been issues with a larger than normal number of absentees following the New Year holidays and interruptions in the supply of powder; notwithstanding the hand to mouth approach to raw material stock.
This market disruption is causing price increases in other families of permanent magnet materials as magnet users look to change from Nd magnets. This not only impacts prices through simple economics it is also impacting lead times in these alternative materials.
We are working very closely with our suppliers of raw materials and finished magnets to ensure we have no disruption in supply. This dialogue continues on a daily basis through our manufacturing sites in the UK and the USA and our local offices in China.
27th May 2011
The price of rare earth elements used in the production of rare earth magnets (NdFeB and SmCo) continue to increase and show no sign of levelling, let alone reducing. This volatility leads to quotes for new and existing business being valid for only a few days and significant increases over literally a week. We track the cost of rare earth through the metal markets and since February there has been a near 300% increase in the cost of Nd Oxide with a 20% increase from 16 May to 23 May. Recently there has been the requirement to make advance payment with our production orders to secure purchase of the rare earth metal and whilst we have been able to fund this requirement for the very vast majority of our customers we will need to keep our financial exposure under continued review.
We are now beginning to see restrictions in the power available to the plants in China and this is pushing out factory lead times to 50-60 days for rare earth magnets and associated assemblies; ferrite magnets and assemblies are now on an even longer lead time, approaching 70 days.
This is all having a very significant impact on our businesses and we are trying where at all possible to mitigate this situation. Part of this is the need for us to keep our customers informed of what seems to be ever changing circumstances with little relief on the horizon.
The well reported crisis in the supply of rare earth elements is now having a dramatic impact on the price of NdFeB magnets and products containing these magnets such as; holding magnets, the Elite range of catches, etc. The last few months have seen further unprecedented increases in the cost of rare earth elements which will now inevitably lead to very significant price increases to our customers. We have a very strong supply chain for these materials and we will continue to supply product through this period. We remain committed to ensuring that our customers receive the highest service possible and with products at the most competitive prices available. Where at all possible we will work with our customers to investigate alternative products / materials to try and reduce the impact of this current crisis.
Adjustable Brackets For Surface Mounted 2Kg and 5Kg Elite Catches
We have introduced 2 brackets that allow adjustment on the Surface Mounted Elite range of catches.
The first of these allows 5mm of movement forwards / backwards, the second bracket allows up to 15mm of height adjustment. Both brackets (MS256A, MS256B) can be seen on the on-line site, or contact us firstname.lastname@example.org to request a sample.
Clich here to Buy Online
In Frame Catch Flush Elite
If you would like view a recent interview showing our Elite range of products at the W10 show in Birmingham recently then please click on the link below. http://www.youtube.com/watch?v=PR4peHbDU6M
Our parent company Bunting Magnetics have just developed a new Eddy Current separator which will be launched in Europe later in 2011, if this is of interest to you then please contact Jake Hall directly on 01442 291 702 or email@example.com or take a look at the video clip of the Eddy Current seperator in operation by clicking either of the following links.<iframe title="YouTube video player" width="480" height="390" src="http://www.youtube.com/embed/39PvyLZFKNE" frameborder="0" allowfullscreen></iframe> <iframe title="YouTube video player" width="640" height="390" src="http://www.youtube.com/embed/1a_oMC7c6xQ" frameborder="0" allowfullscreen></iframe>