A kilogram is used to describe the weight of an item, and items that are priced in weight are usually raw materials. For example, the rare earth raw material praseodymium metal is CNY750/kg, dysprosium iron alloy is CNY2700/ kg. Also, when people who specialize in recycling magnet scrap, the unit of measurement is kilograms.
Our permanent magnets are metal parts that need to go through a series of simple or complex processing procedures to be made, so the price of magnets cannot be measured in kilograms.
When a customer says “I need a magnet price per kilogram”, we usually reply that our magnets are custom made and the price of magnets varies with different requirements.
What Specifically Determines The Cost of A Magnet?
It is well known that rare earth metals are the main raw material for producing rare earth magnets. The high proportion of rare earths such as praseodymium, neodymium and dysprosium iron lead to the magnet manufacturers are greatly affected by the fluctuation of rare earth prices.
And magnets need to go through multiple mechanical processing to reach the desired size and shape; meanwhile, magnets are brittle materials, which are more difficult to be machined. Therefore, mechanical equipments and processing experience also affect the price of magnets.
Specifically, the main production cost structure of magnets includes three parts: direct material, direct labor and manufacturing cost. According to the China magnet industry data, the approximate cost percentage range of neodymium permanent magnet, for example, is as shown below:
In addition, different magnet manufacturing companies have their own costs due to their production model and scale. For example, R&D costs, operating costs, management costs, financial costs and other gray costs. Due to the high competition in China magnet industry, the prices of low-end, simple shape magnets are more transparent; the prices of high-end, complex shaped magnet products vary significantly from one company to the other company.
If you want to get the NdFeB magnet price trend/chart, the most direct way is to ask the magnet supplier, or follow the raw material price trend online.
Related read: How to Control The Cost of Neodymium Magnets for Product Development