2022 Neodymium (PrNd) Price Increases
The cost of the neodymium alloy (PrNd) that makes up the majority of our rare earth magnets has risen by over 30% since January 2022, and has increased over 300% since May 2020, according to TradingEconomics.com.
Short and long term price projections remain uncertain as the industry continues to grapple with a strong imbalance between supply and demand in additional to continued supply chain disruptions and global unrest.
totalElement strives to keep any upward price adjustments as moderate as possible and to immediately pass on any reductions in price. Even during these difficult economic times, we are doing everything we can to offer you the best possible prices.
Why is this happening?
There are many reasons behind the recent prices increases of neodymium.
Increase in Demand - Green energy sectors such as electric vehicles and wind power require significant numbers of neodymium magnets in their products. The growing demand for these types of products has partially contributed to the rise in raw material prices.
Rising Transportation and Logistics Costs - The surge in consumer demand sparked by the Covid-19 pandemic has led to supply chain disruptions and increased shipping costs.
- Increasing RMB Value - As the vast majority of the world's magnets are manufactured in China, the material to produce them is acquired using RMB (Renminbi Yuan), the Chinese currency. The Chinese currency RMB has rallied against the US Dollar (USD) in recent years, effectively raising the price of magnets.
10 Year Neodymium Price Chart