Price going up on Neo loaded Cabinets

[6stringapprentice]

For those who aren't on Talkbass, the word is the price of raw neodymium is said to double. Current predictions indicate this increase will directly impact neodymium woofers. There have been reports of Eminence neo line of speakers doubling price quotes as of right now.

So if you've been gassing for a neo loaded cab nows the time to get in before the price shoots up. I'm probably going to order a spare 3012lf tomorrow and see about how much the recone kits cost to be imported.

China just announced a massive tax on rare earth minerals which has caused neodymium prices to double in the last week. In addition to that China is reducing export of neodymium by over 60%.
Eminence, largest speaker manufacturer in North America, has been notifying many of its clients about this news. Many speaker brands which use Neo drivers are now faced with this new huge price increase, but also shortage of materials.
Many manufacturers are now rethinking the viability of Neo based products.

What does that mean for bass players? If you want a neodymium bass cabinet you'd better get it now. Neo cabs may not exist anymore. Those that remain available will have prices substantially higher than they are now.

China increases tax on rare earth minerals, neodymium prices double

28th Mar, 2011

China, the global leader in rare earth production, is set to impose a new tax on rare earth minerals from April 1 the Ministry of Finance and the State Administration of Taxation has told rare earth producers in the country.

As reported in the Shanghai Daily, Zhang Zhong, General Manager of the Baotou Steel Rare-Earth Hi-Tech Co, China’s leading rare earth producer, stated that the tax for mined light rare earths is to be 60 yuan ($9.15) per ton, while that of medium and heavy rare earths is to be 30 yuan ($4.6).

China currently lists rare earth minerals under the category of ordinary non-ferrous metals, whose tax rates are between 0.5 ($0.08) and 3 yuan ($0.46) per ton.

Baotou Steel Rare-Earth Hi-Tech Co, headquartered in northern China, is currently the world's biggest producer of rare earth magnets. Zhang Zhong said the tax will increase the company's production costs by about 720 million yuan (US$109.7 million) this year.

Neodymium prices double

Zhong continued by stating that prices of rare earths have been soaring since February (2011), sometimes by 10,000 yuan per ton a day. The price of neodymium, a rare earth mineral used for making rare-earth magnets, increased to 600,000 yuan ($91,415) per ton this week (wb 21/3/11) from 300,000 yuan ($45,707) per ton at the end of 2010.
enews257

The tax is part of a series of new measures unveiled by the Chinese authorities affecting the industry. The Ministry of Environmental Protection announced earlier this month that tougher rules on emission limits for producing rare earths will take effect in October 2011.

As reported last month on ipmd.net (see here), China has already cut export quotas for rare earth minerals this year, causing concern for many industries. The shortages have resulted in new searches for rare earth mineral deposits in other regions of the world.

[malthumb]

I kinda knew this was coming.  Neodymium is a required material in permanent magnet motors.  Permanent magnet motors are used in the manufacture of electric motors.  As in hybrid vehicles like Prius.  As in battery electric vehicles like Leaf and Ford Focus EV.  As in Extended Range Electric Vehicles like Chevy Volt.  And so on and so on.

[Andrzej]

Neo speakers are expensive now!  This is not great news     Time to get the old double bass out??

[floaded27]

Time to get the old double bass out??

or  u can get a microphone and hum the bass line like they do in those barbershop quartet groups. lol

[ptidwell]

From what I'm hearing from my vendors this will hit consumers around 4th quarter 2011.

[6stringapprentice]

Following the thread over on talkbass it seems that the market is responding quite a bit more quickly than was previously predicted as far as alternate providers of the material.

It's been said that bergantino has already discontinued their neo line.

I just saw my first +$300 kappalite today also.

[Andrzej]

This is going to be quite a challenge for manufacturers. Neo drivers are expensive, but the market is demanding because of the light-weight benefits and power efficiency.  My Bergantino cab can be picked up with one hand without struggle, so paying the extra few coins was definitely worth it for me.

Now, that cab cost me £840 ($1300).  For a 2x12, that’s pretty pricey!  No doubt in my mind some manufacturers will continue to build cabs with Neo drivers because of the ‘exclusive’ appeal, but would you pay double the price or sacrifice a small reduction in power and spend more time tin the gym?

[browntree]

I kinda knew this was coming.  Neodymium is a required material in permanent magnet motors.  Permanent magnet motors are used in the manufacture of electric motors.  As in hybrid vehicles like Prius.  As in battery electric vehicles like Leaf and Ford Focus EV.  As in Extended Range Electric Vehicles like Chevy Volt.  And so on and so on.

That's a good call...

[ptidwell]

Well, apparently Eminence has raised there prices immediately almost a 50% increase. However, 80% of the drivers I use  are from Faital Pro, an Italian manufacturer, I also use Ciare also Italian along with  Beyma from Spain, all high quality drivers, they all report about a 10% increase by years end. I have no idea why Eminence is making such a marginal increase. I'm glad they aren't the only ones with a dog in this fight, and I can still make an eighty pound 4x10 with Ferrite or Alnico magnets which is still 20 -30 pounds lighter than a 410 a decade ago, but my back appreciates the lighter weight that neo's bring to the table.