Ferrite Magnet Prices Surge as Strontium Carbonate Supply Crisis Deepens

A sudden and severe disruption in the strontium carbonate supply chain — a key raw material for ferrite magnets — is sending shockwaves through the global magnet industry. Prices of ferrite magnets, widely used in motors, speakers, appliances, and industrial equipment, are climbing rapidly as upstream costs spiral out of control.

🔥 The Chain Reaction: From Port Explosion to Magnet Market

In April 2025, a major explosion at Iran’s Port of Abbas halted large-scale exports of celestite, the high-grade ore (85%+) from which strontium carbonate is refined. China, despite holding about 25% of global celestite reserves, relies heavily on imports due to lower ore grades (35–60%). The sudden loss of Iranian supply has left many Chinese producers scrambling for raw material, triggering a historic price rally.

• Strontium Carbonate Price Trend (China Domestic Market)
  • Sep 2024: RMB 8,000/ton
  • Jun 2025: RMB 16,000/ton
  • Aug 2025 (spot offers): RMB 18,000–19,000/ton
    Analysts warn prices could exceed RMB 20,000/ton in the coming months.

With strontium carbonate accounting for over 50% of ferrite magnet raw material cost, magnet manufacturers are now facing unprecedented production cost hikes.

Compounding Supply Pressures

The ferrite magnet industry is under dual pressure from both raw material shortages and reduced production capacity:

1. Environmental Policy Upgrades — In March 2024, China’s emergency management authorities ordered the elimination of outdated intermittent carbonization processes, forcing many strontium carbonate plants into costly technical upgrades or shutdowns.
2. Major Producer Shutdowns — Hebei Xinji Chemical Group, responsible for nearly 29% of China’s strontium carbonate output, entered bankruptcy reorganization in late 2024. Multiple other producers have since halted or reduced output.
3. International Supply Shocks — Mexico’s Kandelium plant, a major global strontium carbonate supplier, suffered fire damage earlier this year, removing 40,000 tons of annual capacity from the market.

Impact on Ferrite Magnet Prices

Industry insiders report that ferrite magnet prices in China have already risen 20–35% since Q2 2025, with further increases expected if strontium carbonate prices remain elevated. Export-oriented magnet producers are warning overseas customers of price adjustments starting September 2025, citing raw material volatility and extended lead times.

In downstream sectors — including electric motors, home appliances, and automotive components — procurement costs are likely to rise as ferrite magnet contracts are renegotiated.

Outlook: Possible Prolonged Boom

With domestic and overseas raw material supply both constrained, analysts believe the ferrite magnet market may enter a multi-quarter boom period:

• Short Term (3–6 months): Expect continued price growth and tight supply.
• Medium Term (6–12 months): Market stability will depend on the speed of Iranian port recovery, Mexican capacity restoration, and Chinese plant upgrades.
• Long Term (12+ months): If environmental compliance costs remain high, structural magnet price increases may become the “new normal.”

Conclusion:

The ferrite magnet industry is now directly exposed to the global strontium carbonate crisis. Buyers, distributors, and end-users should prepare for sustained cost pressures and consider early procurement or long-term contracts to mitigate further price risks.