SHANGHAI, Feb 24 (SMM) – SMM expects near-term prices of light rare earth to hold steady while prices of medium-to-heavy rare earth will see further upward potential this week, on the back of limited supplies and gradual recovery of logistics and downstream production after weeks of stoppage due to the coronavirus outbreak.
Prices of most rare earth products increased in the week ended February 21. A slight pickup in downstream demand pulled up prices of light rare earth last week, with the average prices of praseodymium-neodymium oxide rising to a two-month high of 286,500 yuan/mt on February 19. Prices of neodymium oxide outperformed that of praseodymium-neodymium oxide due to relatively tighter supply. As of Friday February 21, prices of neodymium oxide stood at 294,000-299,000 yuan/mt, compared with prices of praseodymium-neodymium oxide at 284,000-287,000 yuan/mt, SMM assessed.
The continued suspension of mineral imports from Myanmar, coupled with disrupted production in south China amid coronavirus impact weighed on the supply of medium-to-heavy rare earth products. Bullish prospects for prices drove sellers to hike offers of medium-to-heavy rare earth, with quotes of dysprosium oxide climbing to 1.79-1.82 million yuan/mt as of February 21, up 70,000 yuan/mt from a week ago. Trades occurred at prices around 1.8 million yuan/mt last week, SMM learned.
Prices of terbium oxide and terbium metal also increased significantly, with traded prices rising to as high as 3.9 million yuan/mt and 5 million yuan/mt last week. Enquires for medium-to-heavy rare earth were brisk.
