Permanent magnet (PM) materials are nowadays widely used in the electrical machine manufacturing industry. The eddy-current loss models of PMs used in electrical machines are frequently discussed in research papers. In magnetic steel materials we have, in addition to eddy-current losses, there are hysteresis losses when alternating current or a rotating flux travels through the material. Should a similar phenomenon be also taken into account in calculating the losses of PMs? Every now and then, authors seem to assume that some significant hysteresis losses are present in rotating machine PMs. This paper studies the mechanisms of possible hysteresis losses in PMs and their role in PMs when used in rotating electrical machines.