Firms paid more to stock magnets as tensions rose

Manufacturers using permanent magnets in automobiles and electronics products rushed to secure the supplies of magnets in March and April by paying more, just as trade tensions spiked between the US and China.

- Ayaan Kartik & Manas Pimpalkhare

Mint's analysis of the country's trade data showed that the quantity of imports of such magnets saw a jump in March and April, with over 20% and 87% respective increases compared to a year ago. In value terms, the imports increased by 38% and 19% during these two months.

Imports at such a premium are in contrast to the low prices of such imports in 2024-25 during which, while the quantity of imports of these magnets nearly doubled, the value of these imports increased by only 3%.

India imported 53,740 tonnes of permanent magnets in FY25, a rise of 88%. However, in terms of value, the imports totalled $206 million, an increase of just 3%.

By contrast, import volume rose 21% year-on-year to 2,674 tonnes in March, with value jumping 38% to $16.87 million.

For April, volume stood at 3,064 tonnes, up 87%, while value rose to $17.64 million.