The price of rare earth material, due to complex reasons, has been through ups and downs (as shown in the lower-left chart) and from time to time we see the range of fluctuation, especially price increase, was quite big and it happens in such a short time that everyone from the downstream industry even did not have time to react on it. We receive a lot of complaints but, as most of our peers, there is nothing we can do to change the situation.
However, we do have a solution to relieve the impact to some extent = we recommend our customers to switch from raw NdFeB magnets to rubber coated magnets for holding application. In a rubber coated magnet the NdFeB magnet is the main component especially in terms of producing the holding force but the size of it is smaller because it is one of the features of these rubber coated magnets to have the same force without that big magnet. Besides, there are other materials to make NdFeB cost not that dominant.
From above we can gather that the percentage of NdFeB magnet cost in that of the whole rubber coated magnet is much less comparing with a complete piece of NdFeB magnet that can produce the same force. Furthermore, other materials, such as rubber, or a rubber coated magnet, are more stabilized as long as its price is concerned. So, when the NdFeB price changes you will see a much smaller change in the price of a rubber coated magnet.