Shin-Etsu Chemical to Increase Rare Earth Magnet Over 40%

Shin-Etsu Chemical announced on Tuesday the firm increases rare earth magnet selling price by more than 40% for July shipment when raw materials of neodymium and dysprosium price tripled in the past 2 months. The firm also announced the firm starts monthly rare earth magnet pricing system for July shipment to reflect raw materials cost change in shorter period while the pricing was 3 to 6 months term.

Shin-Etsu Chemical sets the rare earth magnet selling price based on neodymium and dysprosium price. However, the firm decided the monthly pricing when the pricing failed to reflect wide cost increase timely.

Supply concern lifts rare earth market price due to export control by the largest producing country of China, which dominates 95% of the world’s production. For a part of efforts for stable procurement, the firm has launched rare earth magnet collection from used automobile and air conditioner. The firm also tries commercialization of dysprosium consumption halving technology.