Chinese Rare Earth Prices and News Archive (scroll down)

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Chinese Rare Earths: The Giant is in Control, Near and Long term

https://rareearthsinvestor.com/re-blog/f/chinese-rare-earths-the-giant-is-in-control-near-and-long-term

Chinese Rare Earths: A Boon for Rest of the World Production

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Review of Rare Earth Market in 2021

SHANGHAI, Jan 17 (SMM) - The rare earth market faced great supply challenges on the back of surging demand thanks to the rapidly development sectors including new energy vehicles (NEVs), wind power generation, etc. in 2020-2021, which are the key application fields of rare earth products, fuelled by the global carbon peaking and carbon neutrality goals as well as the upgrading level of consumption and recognition of energy reservation and emission reduction. The NdFeB magnetic materials manufacturers in the upstream have been actively expanding their capacities to answer the market needs. Throughout 2021, the annual rare earth mining and smelting quotas rose 20% on the year to 168,000 mt and 162,000 mt respectively, while the upstream supplies of rare earth oxide and alloy were still unable to meet the expanding NdFeB magnetic materials capacity as well as the terminal applications. Taking praseodymium neodymium (PrN) as an example, the domestic demand for rough NdFeB exceeded 200,000 mt in 2021, equalling to a demand of over 80,000 mt of PrNd oxide. However, the total PrNd oxide capacity stood only at 70,000 mt in the same year, leaving a palpable supply gap. Hence, the mainstream rare earth products prices rose as whole in 2021 amid obvious supply shortage. The rare earth products prices rose significantly int he first quarter of 2021. The prices of PrNd oxide rose from 411,000 yuan/mt to 585,000 yuan/mt, an increase of 42%. Terbium oxide prices climbed from 7.4 million yuan/mt to 9.7 million yuan/m, an increase of 31%. The prices of dysprosium oxide also recorded significant gains of around 56.6%, rising surging from 1.96 million yuan/mt to 3.07 million yuan/mt. The manufacturers basically resumed their production when the COVID-19 pandemic control became the new normal in this period. The downstream demand grew by the end of February and early March as the industry participants returned to work after the Chinese New Year holiday, boosting mainstream rare earth products prices. Then there came the seasonal low in Q2, when the prices dropped on the whole. On the supply side, the downstream demand dropped as it was the traditional off-season. On the supply side, the light rare earth mining activities yielded output in April and May, and the upstream separation companies took the opportunity to expand their production as the quotas were relatively abundant at the beginning of the year. The PrNd oxide output rose 17.2% MoM in May. The supplies of rare earth oxide and alloy were high throughout the year, and the market was in a transitory oversupply. During this period, the prices of PrNd oxide dropped from 585,000 yuan/mt to 476,000 yuan/mt, down 18.6%. Terbium oxide prices recorded a lost of 18.6% from 9.7 million yuan/mt to 6.3 million yuan/mt. The prices of dysprosium oxide fell from 3.07 million yuan/mt to 2.35 million yuan/mt, a decrease of 23.5%. In the third quarter, the market prices rose first and then remained congested. Affected by the pandemic, the China-Myanmar border was closed since July, and expectation of tigher rare earth supply was heightened, which boosted the bullish sentiment. As such, the prices of mainstream rare earth products rose significantly in July. The prices of PrNd oxide increased from 482,000 yuan/mt to 625,000 yuan/mt, up 30%. Terbium oxide prices climbed from 6.5 million yuan/mt to 8.4 million yuan/mt, a palpable increase of 29%. Dysprosium oxide prices also managed a gain of 11.8% from 2.37 million yuan/mt to 2.65 million yuan/mt. In the following two months, the news of customs closure was gradually digested by the market, and the prices of mainstream rare earth products stood congested in a muted makret. In the last quarter of 2021, the prices soared to the highest in the year from October to November. The prices of PrNd oxide rose from 600,000 yuan/mt to 860,000 yuan/mt, a significant gain of 43%. The prices of terbium oxide rose above 10 million yuan/mt from a low of 8.9 million yuan/mt to 12.5 million yuan/mt, an increase of 40.4 %. Dysprosium oxide prices also managed to climb though modestly compared with other products, which rose from 2.72 million yuan/mt to 2.95 million yuan/mt, up 8%. On the demand side, the restocking demand was high both in China and overseas in October-November due to the Christmas holiday as well as the vibrant downstream sector in China. The market later turned wait and see in December as most manufacturers were about to close their long-term contracts. On the other hand, the market participants faced greater financial pressures around the year-end, and were busy managing their annual income statement. The high raw materials prices also suppressed the downstream demand. On the supply side, affected by the shortage of thermal coal supply, the electricity restrictions intensified in south China in October, the operating rates of upstream rare earth separation enterprises and metal enterprises decreased, resulting in less supply of mainstream rare earth products such as PrNd, dysprosium and terbium. In addition, the stocks of rare earth ores stored at the beginning of the year were gradually exhausted, and the supply side did not see any replenishments since July when the ore imports from Myanmar were disrupted by the COVID-19 pandemic. The supply gap of domestic rare earth ores expanded further in the fourth quarter.

The rising downstream demand and tightening upstream supply aggravated the gap between the two. The prices of mainstream rare earth products surged on the back of rising costs when the auxiliary materials prices rose on power rationing in south China in Q3. PrNd oxide and alloy prices both recorded the yearly high at 860,000 yuan/mt and 12.5 million yuan/mt respectively in 2021.

Rare Earth Ore Mining Quota Review in 2021  

SHANGHAI, Jan 6 (SMM) - China’s  rare earth mining and smelting/separation quotas stood at 168,000 mt and 162,000 mt respectively in 2021, according to the Ministry of Natural Resources (MNR) and the Ministry of Industry and Information Technology (MIIT). Among them, the mining quotas for ion-absorbed rare earth ores (primarily middle to heavy rare earth) and rare earth minerals (light rare earth) were 19,150 mt and 148,850 mt respectively. The quotas for rare earth mining and smelting/separation in 2020 came in at 140,000 mt and 135,000 mt respectively. In 2019, the total domestic mining quota for rare earth ores (rare earth oxide or REO) recorded 127,000 mt. Based on the data in the past three years, China’s rare earth mining and smelting/separation quotas have been on the rise on the back of expanding demand. China's rare earth mining quotas increased 28000 mt in 2021 from 2020, all of which are for light rare earth elements. And the mining quota for middle and heavy rare earth elements remained unchanged. The quotas increased 8,000 mt in 2020 from a year ago, all of which were also for light rare earth elements. China’s rare earth mining quotas have been growing more rapidly driven by the demand from the terminal sectors based on the quotas released in the past three years. And the increase came almost all from light rare earth elements. Based on allocation of quotas in 2021, the Northern Rare Earth Group’s quota rose by 26,800 mt year-on-year, and the Southern Rare Earth Group increased by 1,200 mt, all of which were for rare earth minerals (light rare earth elements). China is rich in light rare earth resources while the middle and heavy rare earth resources in China are relatively scarce. Therefore, out of the need to preserve middle and heavy rare earth resources as well as driven by the increase in rare earth consumption amid the rapid development of downstream industries such as new energy and wind power, China have continued to raise the supply of light rare earth elements.

Overall, domestic rare earth ore is still in short supply this year.

Guangdong Launched a 8,000 mt NdFeB Permanent Magnet Material Project with Annual Output Value at 2.5 Billion yuan

SHANGHAI, Dec 31 (SMM) – Rising Nonferrous Shengyuan's 8,000-mt high-performance NdFeB permanent magnet material project was officially launched in Dongyuan County, Heyuan City on December 30.

The total investment for the project is 1.252 billion yuan, covering an area of 8,000 square metres. After the completion of the first and second phases of the project, the annual output value will be 2.5 billion yuan, with an annual profit at 408 million yuan. It will create 580 new jobs. The production technology and the full-process automatic control system to be adopted by this project are all at the domestic leading level.

This project is an important project for Rising Nonferrous Co. to accelerate its extension to the rare earth industry, increase added value, and enhance the competitiveness of the entire industry chain of rare earths.

Strategic Restructuring of Rare Earth Assets by Chinalco, China Minmetals, Ganzhou Municipal Government Approved

SHANGHAI, Dec 23 (SMM) - Minmetals Rare Earths released an announcement stating that on 22 December 2021, Minmetals Rare Earths Company Limited was notified by China Minmetals Group Company Limited that, the State-owned Assets Supervision and Administration Commission of the State Council had approved the strategic restructuring of relevant rare earth assets among Aluminum Corporation of China Limited, China Minmetals, Ganzhou Municipal People's Government, and a new Company will be established and controlled by the State-owned Assets Supervision and Administration Commission of the State Council. The equity interests in China Rare Earth Company Limited held by Chinalco Group, the equity interests in Minmetals Rare Earth Company Limited and Minmetals Rare Earth Group Limited held by enterprises belonging to China Minmetals, and the equity interests in China Southern Rare Earth Group Limited, Jiangxi Ganzhou Rare Metal Exchange Limited Liability Company and Ganzhou Zhonglan Rare Earth New Material Technology Company Limited held by Ganzhou Rare Earth Group Limited and its affiliated enterprises were all transferred to the new Company. After this restructuring, the controlling shareholder will still be Minmetals Rare Earth Group Limited and the actual controller will be changed from China Minmetals to the new Company.

Analysis of China Rare Earth Import and Export Structure 2019-2021

SHANGHAI, Dec 17 (SMM) - China's rare earth exports continued to grow from 2016 to 2018, but the growth slowed year by year. And it finally unlocked the downward trajectory since 2019. The exports of rare earth came in at 46,300 mt in 2019, down 12.64% from the previous year. The exports dropped significantly in 2020 as the global downstream manufacturing industry contracted on the back of COVID-19 pandemic.

China's exports of rare earth continued to grow since the beginning of this year. The latest data released by the General Administration of Customs shows that China exported 4,859.2 mt of rare earth in November, with a cumulative annual export volume of 44,926 mt, a year-on-year increase of 43.6%. The overall export volume of rare earth this year increased significantly when compared with 2020. In 2020, the export volume of rare earth decreased significantly year-on-year, and the reduction was concentrated in the overseas summer holiday period in the third quarter. Under the interference of the COVID pandemic, overseas market demand continued to be sluggish. The overseas pandemic situation improved in the first three quarters in 2021, and China's rare earth export market also recovered. Nonetheless, the third quarter is still the seasonal low for rare earth exports. China’s rare earth exports in the third quarter decreased 0.9% from 11,921 mt in the second quarter to 11,811 mt, up about 124% from 5,265.2 mt in the same period last year.

The export structure of the rare earth products has changed, and the export volume of rare earth permanent magnet products has risen sharply. China exported 35,265 mt of rare earth permanent magnets in 2019, a year-on-year increase of 7.9%. In 2020, the exports of rare earth permanent magnets totalled 35,981 mt, a year-on-year increase of 2%. The exports recoded 40,078 mt in the first ten months of 2021, a year-on-year increase of 39.3%, far exceeding the level in the same period last year.

Rare Earth Industry Integration Accelerated to Improve Industry Concentration

SHANGHAI, Dec 10 (SMM) - It is reported that the China Rare Earth Group, jointly established by China Minmetals, Aluminum Corporation of China, and Ganzhou Rare Earth Group, will be listed at the end of this month the latest. It will be a significant milestone underpinning the accelerated horizontal integration process among rare earth companies in south China. In 2021, China's total rare earth mining quota is 168,000 mt, of which China Minmetals, Aluminum Corporation of China, and China Southern Rare Earth collectively accounted for 36%. The smelting and separation quota is 162,000 mt, and the three together accounted for 36%. The mining quota for ionic rare earth ore is 19,000 mt, of which the three together account for 68%. The newly established Group will account for two-thirds of the upstream industry of medium and heavy rare earth. Compared with the horizontal integration of mergers and reorganisations between enterprises in the south, the vertical integration between the upstream and downstream of the rare earth industry chain in the north appears to be a little slower. It is reported that Northern Rare Earth has acquired some metal companies and plans to increase the metal production lines such as praseodymium and neodymium, so as to realise the vertical extension from the upstream such as mining and separation to the midstream like metal smelting. The integration of the rare earth industry in north and south China has resulted in higher industrial concentration as well as concentrated market pricing power. It will facilitate the stability of mainstream rare earth products prices. And the industry will then develop at a level which is more welcomed by both the upstream and downstream, and avoid the rapid changes in the market. The reason is that if the prices are rising too fast, the downstream will turn away from such offers. Meanwhile, it will be more difficult for upstream and downstream companies to negotiate prices, and upstream companies can only bear the losses caused by the rapid changes in raw material prices. Secondly, the use of mainstream rare earth products by enterprises has decreased, while the use of low-cost alternatives has increased. For example, the prices of terbium oxide has increased rapidly since November 2020, and the amount of terbium metal used by some magnetic materials companies has been reduced from 8 kg per ton of rough NdFeB to 2 kg. Thirdly, overseas competitiveness has weakened. The prices of mainstream products have risen rapidly from 2020 to 2021, and overseas orders of some upstream companies have decreased as well. 

China's rare earth permanent magnet exports decreased slightly MoM in October

SHANGHAI, Dec 6 (SMM) - China's exports of rare earth products are mainly rare earth permanent magnets. In October, the export volume of rare earth oxide and mesh metal recorded only 1,358 mt and 762 mt respectively. Among them, lanthanum, yttrium took up the majority of total exports, while the proportion of key raw materials of rare earth permanent magnets such as praseodymium, neodymium, dysprosium, and terbium was relatively small. In other words, the overseas market is underdeveloped in terms of upstream manufacturing process of rare earth permanent magnets. China exported 4178 mt of rare earth permanent magnets in October, a year-on-year increase of 30.5%. The cumulative exports from January to October increased by 43.7% from 2020. Supplies from China could fulfil 80%-90% of the global demand for rare earth permanent magnets, which have grown rapidly in 2021, supporting the sharp increase in the prices of rare earth products and boosting China's rare earth permanent magnet exports. However, the exports in October decreased 9.2% from the previous month, falling for the first time since this February. Rare earth permanent magnets are mainly exported to Europe and the United States, accounting for 54% of the total.

The decline was mainly contributed by European countries and the US. Among them, the exports to Europe and the US totalled 1754 mt and 484.7 mt respectively, a decrease of 10% and 25.6% from the previous month. And 679 mt of products were exported to South-east Asia, an increase of 3.7% month-on-month. Due to the low popularity of of January of production and labour, some processing plants in Europe and the US have been re-located in South-east Asia, hence the exports of rare earth permanent magnets to South-east Asia are increasing. From the aspect of industry demand, the global sales of new energy vehicles in October decreased slightly by 50,000 units from the previous month. And due to the shortage of chips, the output of traditional fuel vehicles also decreased, and the impact has lasted until November. The number of orders for wind turbines in the United States decreased as well owing to the uncertainty of tax relief in Congressional bills and cost pressures. In October, downstream demand from overseas new energy vehicles, traditional fuel vehicles, wind turbines, etc. weakened, and the costs of shipping containers increased. In other words, the profits of overseas downstream enterprises of rare earth permanent magnet were damaged, hence the orders decreased, resulting in a decrease in China's rare earth permanent magnet exports. On the other hand, the prices of domestic raw materials for permanent magnets were high, the payment period has been shortened or changed to cash transactions. Therefore, some magnetic materials companies suffered losses. Under financial pressures, domestic magnetic materials companies had to reduce their export orders. China's imports of rare earth products are mainly rare earth ore from Myanmar and the United States. Among them, the structure of imports from Myanmar has changed from mixed rare earth carbonate to unlisted rare earth oxides. The ore imports from Myanmar have been falling year by year in 2018-2021, and recorded 14,000 mt from January to October 2021. The import volume of rare earth mesh metal ore from the United States has increased year by year from 2018 to 2020, and the imports from January to October 2021 were 56,000 mt, surpassing the import volume in the same period last year. The production of MP mine is close to full capacity, and the import growth of rare earth mesh metal ore from the United States will be limited. Myanmar has been affected by the COVID pandemic and closed its customs since July. The global pandemic prevention and control still faces great difficulties, and subsequent imports of Myanmar ore will be low.

[Spoiler] China Rare Earth Industry Chain Annual Report 2021-2025

SHANGHAI, Nov 19 (SMM) - China’s total rare earth exports from January to September, 2021 came in at 35,637 mt, up 35% on the year. China’s monthly rare earth exports have stabilised entering H2 and the average monthly exports stood at 3,956 mt in June-September. The prices of rare earth products in China fluctuated slightly in August-September. The exports were basically flat from August. The European and American markets ended the summer break in September, and the demand was better than in August. However, the exports did not increase amid tight domestic supply. In addition, although the prices of many rare earth products in China rose sharply year-on-year in September, the exports increased YoY in September as overseas markets rely heavily on domestic supply and their demand in 2020 has been greatly suppressed by the Covid-19 pandemic, which resulted in a lower baseline.

China Northern Rare Earth Raised Didymium Oxide Prices for November by Over 20%Nov 8,2021 

SHANGHAI, Nov 9 (SMM) - China Northern Rare Earth (Group) High-Tech Co.,Ltd. issued the prices of rare earth products in November today. Lanthanum oxide is quoted at 10,800 yuan/mt, and cerium oxide is quoted at 10,800 yuan/mt, the same as last month. Didymium oxide is quoted at 762,600 yuan/mt, a sharp increase of 22.37% from last month, and neodymium oxide is quoted at 792,900 yuan/mt. The prices of praseodymium-neodymium alloy are 930,000 yuan/mt, a sharp increase of 21.89% from the previous month, and the price of neodymium metal was 965,000 yuan/mt, an increase of 21.54% from the previous month.

Rare Earth Prices Likely to Stay High in the Long Run 

SHANGHAI, Nov 4 (SMM) - On November 4, the eightieth special auction of China North Rare Earth (Group) was completed, and all four bids of 20 mt of PrNd alloy were sold at an alarm price of 930,000 yuan/mt (SMM note: the alarm price is the highest price that can be bid on that day). It is worth noting that in the 79th special bidding session, which ended yesterday, 20 mt of PrNd alloy were also sold at an alarm price of RMB 890,000/mt, indicating a clear rising trend. Also on November 4, the average spot price of SMM PrNd alloy stood at 915,000 yuan/mt, up 30,000 yuan/mt from a day ago and recording a single day increase of 3.39%. While back on October 8, the average spot price of SMM PrNd alloy was only 740,000 yuan/mt, which surged by 175,000 yuan/mt or 23.6% in just one month. According to SMM, PrNd alloy prices have been firm since last week, with a few transacted at 880,000 yuan/mt last Friday. The trading was active at the beginning of this week, but spot transactions were thin; and the market was mostly wait and see as the participants’ fears over high prices weakened and hence made less shipments. The output of metal factory in Ganzhou dropped slightly in October due to the impact of power rationing. While the market has stabilised after the power rationing eased. The supply of raw ore continues to be tight, and the ore prices trended upward along with the rising prices of auxiliary materials like hydrochloric acid, iron, fluoride, etc. As such, the production costs of PrNd alloy moved up, and its prices are still correcting upside this week. Meanwhile, some large rare earth enterprises in north China will be shut down for maintenance in November, and the import of heavy rare earth ore from Myanmar was still blocked, coupled with the price hike of raw ore to different degrees. Imports of light rare earth ore from US rose to 60,000 yuan,mt, and domestic light and heavy rare earth ore have rose to 50,000 yuan/mt and 330,000-340,000 yuan/mt, respectively. However, the acceptance of the current price level of PrNd alloy by the magnetic materials factories is low. In order to reduce the procurement costs, part of the low-end magnetic material factories Inner Mongolia, Sichuan and other places have decided to use lanthanum-cerium alloy instead of PrNd alloy. While some of the wind motor upstream high-end magnetic material factories in Inner Mongolia, Zhejiang, and Jiangxi have stopped accepting new orders, and the downstream air conditioning enterprises are also looking for alternatives of rare earth permanent magnets. According to some research institute, since the fourth quarter, rare earth downstream production has entered the seasonal peak, while the rare earth inventory has stayed low at 2500 mt. The rare earth separation enterprises are also affected by power rationing to different degrees, triggering the price hike of rare earth. In the medium and long term, downstream demand, especially new energy vehicles, inverter air conditioners, etc. continue to be high; but the supply of rare earth is unlikely to see significant increase as the mining of rare earth is restricted by the quota. As such, the rare earth prices are likely to stay high in the long run.

China’s Rare Earth Permanent Magnet Exports to Fall Sharply in October as Rising Prices Constrained Demand   

SHANGHAI, Nov 3 (SMM) - In September 2021, China's permanent magnet exports increased by 6% MoM to 4,602 mt, and the export unit price was $59,952/mt, down 0.22% MoM. China exported 35,896 mt of rare earth permanent magnets from January to September, an increase of 40% year-on-year.

Germany was the top destination from January to September, followed by the United States, South Korea, Vietnam, and Italy. The prices of rare earth products in China rose rapidly in October, driven by power rationing, tight supply, and increased production costs. The mainstream prices of Pr-Nd oxide exceeded 700,000 yuan/mt to 720,000-725,000 yuan/mt as of October 29. The prices of terbium oxide and dysprosium oxide also continued to rise. A small amount of terbium oxide was traded at 10.2 million yuan/mt, and dysprosium oxide was offered at 2.9 million yuan/mt. Prices of rare earth metals also climbed steadily. The transaction prices of Pr-Nd metals were close to 880,000 yuan/mt as of October 29, and terbium metal was offered as high as 12.3 million yuan/mt, and the quotation of dysprosium iron also reached 2.9 million yuan/mt. After nearly a month of rapid increase, the prices of Pr-Nd oxide saw downward corrections on October 29. Against the backdrop of the surge in domestic rare earth product prices in October, overseas demand is expected to have been suppressed. It is expected that China’s exports of rare earth permanent magnets may have declined significantly in October.

China's Praseodymium-Neodymium Oxide Output Rose 1.6% MoM in September

SHANGHAI, Oct 19 (SMM) - China's output of praseodymium-neodymium (PrNd) oxide in September 2021 stood at 5,814 mt, up 1.6% on the month. The increase was mainly contributed by Sichuan, and the output in other regions was largely unchanged, according to SMM research. The output of PrNd in the rare earth separation plants using light rare earth ore as the raw material in north China was relatively stable in September. Though affected by the power rationing, most companies still maintained the output of PrNd on the sacrifice of relatively cheap lanthanum and cerium products. The rare earth separation plants using medium and heavy rare earth ore as raw materials in south China have found it hard to maintain the output level, as the import of Myanmar ore has been blocked, and the power rationing policy also created negative influences. The output of PrNd oxide in a few enterprises dropped by about one-third. The output of PrNd oxide in rare earth separation plants that use scrap as the main raw material has remained stable. Several companies in Jiangsu have been greatly affected by the power rationing, the output of which has been reduced by nearly 90% in terms of PrNd oxide, coupled with the high production costs. There have also been a few plants in Jiangxi that use scrap as the raw materials recording output loss of around 50%.

With the end of environmental protection inspections, the separation plants in Sichuan and Guangdong have resumed the production. It is expected that the output of PrNd oxide across China will continue to increase month-on-month in October and hit a high of 6,000 mt. The domestic output of praseodymium-neodymium (PrNd) alloy in September 2021 stood at 5614 mt, a slight increase of 2.6% month-on-month mainly due to the expanded production of some plants. Most metal factories mainly delivered for long-term orders, and they also signed long-term contracts with upstream suppliers. Therefore, the overall output of PrNd alloy has been relatively stable. However, the output of some plants dropped on the month, mainly because they have chosen to reduce the purchase of high-priced raw materials to mitigate the risks as the downstream sector tended to turn away from the high prices. Due to the impact of power rationing, the prices of auxiliary materials rose, subsequently pushing up the production costs of rare earth products.  Some small and medium-sized magnetic materials companies worry that the subsequent procurement will be more difficult. While the demand for metals has increased slightly recently, but the energy consumption of metal factories is generally higher. On the back of the on-going power rationing, the output of PrNd alloy in October is likely to increase slightly from September. In terms of imports, the import of light rare earth ore has been normal, and the market’s focus is mainly on whether Myanmar medium and heavy rare earth ore could complete the customs clearance smoothly. During the period when Myanmar rare earth mine imports were blocked, China's rare earth ores were still in short supply, which provided strong support for the current rare earth prices. In addition, according to the October list prices disclosed by Northern Rare Earths, the lanthanum oxide was quoted at 10,800 yuan/mt, cerium oxide at 10,800 yuan/mt, PrNd oxide at 623,200 yuan/mt, and PrNd alloy at 763,000 yuan/mt, flat from last month. Meanwhile, the neodymium oxide was quoted at 649,100 yuan/mt, an increase of 1.31% from the previous month, and neodymium metal was quoted at 794,000 yuan/mt, an increase of 1.28% from September. SMM expects that the current rare earth market will still largely remain stable.

Rare Earth to Usher in A New Round of Price Hike

SHANGHAI, Oct 13 (SMM) - The rare earth market saw extensive prices hike this week though the transaction has been slack. While the traders were mostly optimistic over the future trajectory of development, thus held back goods, supporting the spot prices. As of Oct 12, the transaction prices of PrNd oxide has grown to 605,000 yuan/mt, and it is hard to find any spot below the price of 605,000 yuan/mt. The highest offer stood at 608,000 yuan/mt. The transaction prices of PrNd alloy has also picked up, with some done at 755,000 yuan/mt with credit and 748,000 yuan/mt in cash. Some magnetic material enterprises have also decided to raise its quotes. But the prices of other light rare earth products were relatively stable. In terms of medium and heavy rare earths, the transaction prices of terbium oxide stood between 8.9-8.95 million yuan/mt, and dysprosium oxide was mostly traded at 2.72-2.75 million yuan/mt; the prices of terbium metal and dysprosium iron also trended up slightly. Some large plants quoted 11.5-11.6 million yuan/mt for terbium metal, 2.74-2.75 million yuan/mt for dysprosium iron. The overall transactions of metals have been muted.

For other medium and heavy rare earths, the prices of gadolinium, erbium, yttrium, holmium all rose significantly. Among them, the prices of erbium oxide have reached 230,000 yuan/mt, a new high since the beginning of this year. It is rumoured that some magnetic material enterprises use erbium iron instead of holmium iron to produce magnetic materials. 

The Output of PrNd Oxide and Alloy in September both Increased Slightly on the Month

SHANGHAI, Oct 12 (SMM) - China's output of praseodymium-neodymium (PrNd) oxide in September 2021 stood at 5,814 mt, up 1.6% on the month. The increase was mainly contributed by Sichuan, and the output in other regions was largely unchanged. The output of PrNd in the rare earth separation plants using light rare earth ore as the raw material in north China was relatively stable in September. Though affected by the power rationing, most companies still maintained the output of PrNd on the sacrifice of relatively cheap lanthanum and cerium products. The rare earth separation plants using medium and heavy rare earth ore as raw materials in south China have found it hard to maintain the output level, as the import of Myanmar ore has been blocked, and the power rationing policy also created negative influences. The output of PrNd oxide in a few enterprises dropped by about one-third. The output of PrNd oxide in rare earth separation plants that use scrap as the main raw material has remained stable. Several companies in Jiangsu have been grealy affected by the power rationing, the output of which has been reduced by nearly 90% in terms of PrNd oxide, coupled with the high production costs. There have also been a few plants in Jiangxi that use scrap as the raw materials recording output loss of around 50%. With the end of environmental protection inspections, the separation plants in Sichuan and Guangdong have resumed the production. It is expected that the output of PrNd oxide across China will continue to increase month-on-month in October and hit a high of 6,000 mt. The domestic output of praseodymium-neodymium (PrNd) alloy in September 2021 stood at 5614 mt, a slight increase of 2.6% month-on-month mainly due to the expanded production of some plants. Most metal factories mainly delivered for long-term orders, and they also signed long-term contracts with upstream suppliers. Therefore, the overall output of PrNd alloy has been relatively stable. However, the output of some plants dropped on the month, mainly because they have chosen to reduce the purchase of high-priced raw materials to mitigate the risks as the downstream sector tended to turn away from the high prices. Due to the impact of power rationing, the prices of auxiliary materials rose, subsequently pushing up the production costs of rare earth products.  Some small and medium-sized magnetic materials companies worry that the subsequent procurement will be more difficult. While the demand for metals has increased slightly recently, but the energy consumption of metal factories is generally higher. On the back of the on-going power rationing, the output of PrNd alloy in October is likely to increase only slightly from September.

Rare Earth Prices Likely to Trend up in October amid Shortage of Energy 【SMM post-holiday review】    

SHANGHAI, Oct 8 (SMM) - The prices of many rare earth products rose under the influence of the power rationing right before the National Day holiday. The transaction prices of PrNd oxide once reached 600,000 yuan/mt, and the transaction prices of PrNd alloy rose slightly, touching 750,000 yuan/mt with credit. Spot medium and heavy rare earth oxides such as terbium oxide and dysprosium oxide are even harder to find. Some holders quoted up to 9 million yuan/mt for terbium oxide, 2.75 million yuan/mt for dysprosium oxide. The prices of other products such as holmium, gadolinium, and yttrium-erbium also rose slightly. However, the trading activity of the entire rare earth market was muted due to sluggish downstream demand.

During the National Day holiday, some large magnetic material factories suspended production, and inquiries were also scarce. Some rare earth smelting and separation companies said that due to the sharp increase in raw material prices, the prices of some products will be raised by 5 - 10% after the holiday.

The supply of raw materials for most rare earth smelting and separation enterprises in the south has been quite tight, especially the separation plants that rely completely on outsourcing for raw materials will be under heavy production pressures this month. Considering that it will take about one month for raw materials to be processed into finished products, perhaps the rare earth supply will improve slightly in November. In the downstream market, the demand for high-performance rare-earth permanent magnets continues to be stable, but the demand for mid and low-end rare-earth permanent magnets is relatively sluggish. China Northern Rare Earth (Group) will announce the listing price this month, and it is expected that the rare earth market as a whole will remain on the sidelines on the first day after the holiday. At present, the upstream sector has more say in pricing. SMM believes that under the current energy shortage situation, the rare earth raw material supply faces greater risks. With the approach of Double 11 shopping festival, some mid and low-end magnetic material companies may create more stocking demand, pushing up the prices of rare earth products.  The rare earth market may usher in another wave of price hike in October.

China Southern Rare Earth’s offer for terbium oxide soared by 500,000 yuan/mt

SHANGHAI, Nov 25 (SMM)—China Southern Rare Earth Group announced its latest listing prices for medium and heavy rare earth oxides. Prices of gadolinium oxide increased 3,000 yuan/mt to 176,000 yuan/mt, holmium oxide rose 60,000 yuan/mt to 505,000 yuan/mt, while terbium oxide prices soared 500,000 yuan/mt to 5.8 million yuan/mt. Prices of many rare earth products increased last week on tight supply. Both offers and actual traded prices of praseodymium-neodymium oxide and neodymium oxide climbed last week on tight supply and firm demand. Meanwhile, rising raw materials costs and shortage of spot cargoes also boosted prices of metal praseodymium-neodymium and metal neodymium. Prices of terbium oxide, dysprosium oxide and holmium oxide remained firm last week, but trades were moderate as most of the downstream users were cautious about restocking. SMM expects prices of some rare earth products to rise further in the near term due to limited supply of spot cargoes and demand from downstream magnetic materials producers who held certain orders and kept low inventories.