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》BACKInverter air conditioner companies cut down capacities and lift prices with rare earth price hiking.

As the raw material for the compressor of inverter air conditioner, rare earth price hikes, inverter air conditioner producers are facing great pressure on cost. however, raising prices of finished products may reduce their market shares, some air conditioners are faced to cut production.

The Permanent NdFeB magnet is the key material for the compressor of inverter air conditioner. accounting for half of the costfor the compressor , the price rises of rare earth have increased the costs of compressors,so the companies lift the prices in factories. Since this year, the rare earth price keep rising as that of the permanent magnet goes up to RMB700/kg from RMB100/Kg early this year on the spot market, up by 600%. The rare earth and permanent magnet prices rebound in this period with the downstream demand. An official in the old brand company of air condition stated yesterday that is only recovers in the period because of limited rare earth mining and price increasing.

Notably, rare earth serves as the raw material not only for the compressor of inverter air conditioner, but also for downstream electrical machines, electrical machines and energy saving lamps. Zhangyuanbin said that the demand exceeding supply is an important reason of high rare earth price, which will exert an influence on the downsream products and industries.