Rare earth and permanent magnetic material stocks soared, and spot prices rose further

SHANGHAI, Jan 21 (SMM) — Rare earth and permanent magnetic material stocks continued to rise on Thursday morning. As of 10:28 Beijing time, rare earth and permanent magnetic material stocks increased by 4.1% to 1,474.92. Wukuang Rare Earth and Northern Rare Earth surged by more than 8%, and Shenghe Resources and BGRIMM shares also increased. Falling overseas supply and strong demand from new energy vehicles (NEVs) and consumer electronics significantly boosted NdFeB magnetic materials prices.

Strong downstream demand and limited supply bolstered prices of praseodymium-neodymium oxide, according to Hwabao Securities. Demand for high-performance NdFeB magnetic materials from NEVs, home appliances and consumer electronics improved rapidly, while the supply increased at a slower pace. Praseodymium-neodymium oxide is expected to be in short supply during 2021-2025, and prices are likely to rise further. Profits at leading NdFeB magnetic materials producers rose amid fast-rising downstream demand. The rare earth and permanent magnetic material industry is expected to continue to improve during 2021-2025 amid global favourable policies for NEVs. 

In the spot market, prices of lanthanum, cerium metals and oxides were stable, while offers for praseodymium neodymium, terbium, dysprosium continued to increase. Praseodymium neodymium oxide was offered at 454,000 yuan/mt on January 20, the highest since October 2017.