Rare Earth Magnet pricing skyrocking

[Alessander]

My business just got a letter from a (non-wargame related) vendor that they were drastically bumping up the price of their magnet-based products, and was having general problems getting some magnet-based products in stock.

Apparently Neodymium, the main metal used in rare-earth magnets which is primarily mined in China, had skyrocketed in price over the past year - from April 2010 to April 2011 it's more than tripled, and is climbing at a rate of nearly 10% a day. The pricing is not expected to go down any time in the new future.
(you can view the pricing history of Neodymium at here)

What this means for tabletop wargamers is that using magnets for quick weapon/head swaps just got a heck of a lot pricier, and will continue to go up for a while. Expect to see a shortage of rare earth magnets, coupled with some price gouging for the magnets available.

I'm not sure exactly how this will effect future PP models. PP tested the waters with their Bethayne-Belphegore box, (rather successfully, IMHO) but this recent increase in magnet pricing may put a this tech on hold for future models getting the same treatment.

[ArtificialDecaySynthesis]

Tager and Bethayne wrecking up the magnet market? May want to put this in the general discussion or the off topic though.

[PG_Pszito]

Neodymium just thought, 'well if petrol can do it... SO CAN I!'

[Vail_Nocturne]

While many may dismiss the seriousness of this issue, it was established a few years ago just how critical this shortage will become over the next decade.

Rare earth magnets are used extensively in electronics like cell phones and computer hard drives.

China is one of the only known locations on the planet that reliably generates this metal.

Much like the price of tin and copper, as China's billions of people move into a post industrial economy, our world and the pressures on its resources will continue to spike.

One can say, rightfully perhaps, that using "rare" earth magnets in a hobby activity might be wasteful and unnecessary.
But it is far more important to begin a recycle and conservation effort now.

[GreenJello]

I've heard that China has decided to take it's rare earth* raw materials off the market. As a result an american mine is going to be re-opening in the near future to supply these. Before they couldn't compare with the China Price**. In addition to the magnets we all know and love rare earth elements are used in batteries, computers, and other high tech/vital industries.

* "rare earth" elements are neither rare, nor earth.

[Vail_Nocturne]

http://online.wsj.com/article/SB1000...512256774.html

Interesting Wall Street journal article on the topic.

@Gr33nJ3llo Your direct copy paste of Wikipedia is accurate to a point.

The cost of extracting the materials has always been too high to compete directly with Chinese exports.
The elements themselves are not "rare" any more then titanium dioxide is rare.

However, now that demand is greater, you will see more companies open mines.
The downside is that those mines will still have to be profitable, which means prices will have to stay higher then they were last year.

[PG_joedj]

Wow. With all the magnets I have in model bases, maybe I can truly tell my wife that all my PP and GW models were "investments"!!

Hope the price doesn't go up too much, I just started a Skorne army and I'm thinking about Malifaux...

[khadoran wargod]

malifaux...i'm thinking of getting away from that game...but magnets...mmmmm magnets...even when I'm not making a magnetjack with them they're fun! i'll have to hunt some more and get another roll of them

[PG_Alviaran]

Hm. I might need stock up on some of my commonly used magnets.

[CrimsonGuard]

ehm, how many magnets does a person use anyways, even in miniature hobby? It's not like we're going broke over this. I'll probably drink 2 beers a month less when I'm in the bar and that's probably over exaggerated

[Refyougee]

While many may dismiss the seriousness of this issue, it was established a few years ago just how critical this shortage will become over the next decade.

Rare earth magnets are used extensively in electronics like cell phones and computer hard drives.

China is one of the only known locations on the planet that reliably generates this metal.

Much like the price of tin and copper, as China's billions of people move into a post industrial economy, our world and the pressures on its resources will continue to spike.

One can say, rightfully perhaps, that using "rare" earth magnets in a hobby activity might be wasteful and unnecessary.
But it is far more important to begin a recycle and conservation effort now.

I wish people would stop spreading this myth. Nocturne has it right

[GreenJello]

http://online.wsj.com/article/SB1000...512256774.html

Interesting Wall Street journal article on the topic.

@Gr33nJ3llo Your direct copy paste of Wikipedia is accurate to a point.

Actually it's not a cut n paste, it's off the top of my head, maybe we've both got the same source, I remember this coming up a few months ago on Slashdot.

[mege]

I've heard that China has decided to take it's rare earth* raw materials off the market. As a result an american mine is going to be re-opening in the near future to supply these. Before they couldn't compare with the China Price**. In addition to the magnets we all know and love rare earth elements are used in batteries, computers, and other high tech/vital industries.

* "rare earth" elements are neither rare, nor earth.

The unfortunate part is that extracting many of these materials is extremely environmentally damaging - hence the price difference between the US and China (with the latter having significantly more lax environmental restrictions). This is an unfortunate conundrum - with no easy answer as bulling through resources in China doesn't seem to have long term appeal.

[SteakAndSpirits]

Expect to see a shortage of rare earth magnets, coupled with some price gouging for the magnets available.

Just to be clear, natural price is a product of supply vs. demand. Even if 'price gouging' were possible in the real world, rather than just a silly, obfuscating term, it would be impossible to do in a voluntary free market transaction entered in willingly by two parties.

If the price of Rare Earth magnets suddenly skyrockets, existing inventory are yes, really just that valuable. Even if it was purchased with the intention of selling at a lower price.

If those prices were not allowed to rise it would impact availability. And then there would be no magnets.

Which reminds me of No Tea. And Advanced Tea Substitute.

ThisMessageHasBeenBroughtToYouBy007AndGoldfingerTh ankYouJamesBond!(111!11!)

-s&s

[GreenJello]

hence the price difference between the US and China (with the latter having significantly more lax environmental restrictions).

Sorry, there are about 5-6 reasons why china is cheaper, environmental costs are a small part of it. However, my previous post got nuked by the mods for discussing politics.

Just to be clear, natural price is a product of supply vs. demand. Even if 'price gouging' were possible in the real world, rather than just a silly, obfuscating term, it would be impossible to do in a voluntary free market transaction entered in willingly by two parties.

"Free Markets" are an ideal invented by econ profs to make it possible to write papers about the economy. The truth is much more complex, and China is FAR from a "free" economy by any measure.

[SteakAndSpirits]

"Free Markets" are an ideal invented by econ profs to make it possible to write papers about the economy.

They are an ideal that was invented by Economics Professors?

...?

Wait. Were you just trolling for the ghost of Adam Smith? Ha. Nice try. Not biting that one.

-s&s

[blitzmonkey]

they are an ideal that was invented by economics professors?

...?

Wait. Were you just trolling for the ghost of adam smith? Ha. Nice try. Not biting that one.

-s&s

its a trap!!!!!!

[SteakAndSpirits]

its a trap!!!!!!

Our shields can't repel firepower of that magnitude!

-s&s

[Kej]

They could if we coated the hull with Rare Earth Magnets!

[Nalik]

If your into financing your retirement you would have been hearing about the export ban since around 2009. It's not new news, there are several mines which were either restarting or opening because of the threat of an export ban. Two of which are in Australia, one in Canada, and one in the US. I don't buy into commodities, but lithium (also considered a rare earth mineral) is also expected to be in short supply in the coming years.

[Daniel Plainview]

[PG_Feeple]

Miracles, man. Just everywhere.

[PPS_Simon]

With the arrival of economics discussion and juggalos it is clear that this thread is headed nowhere good!