Medium-to-heavy rare earth prices to hold firm on improved enquiries

SHANGHAI, May 18 (SMM) – Prices of most light and medium-to-heavy rare earth oxides increased last week as sellers firmed up offers on active enquiries by downstream consumers. SMM expects the improvement in enquiries to continue to support prices of medium-to-heavy rare earth oxides this week, while prices of light rare earth, such as praseodymium-neodymium oxide, will likely pull back as the strength of demand may unable to sustain a price rally. 

For medium-to-heavy rare earth oxides, SMM assessed spot prices of dysprosium oxide at 1,780-1,800 yuan/kg as of May 15, up 20 yuan/kg from the previous day after prices stablising at 1,770 yuan/kg for nearly a week. Terbium oxide is priced at 3,880-3,920 yuan/kg as of May 15, 25 yuan/kg higher than May 14. Both prices of dysprosium oxide and terbium oxide were close to the lowest level since late-February. 

Prices of praseodymium-neodymium oxide were assessed at 270,000-272,000 yuan/mt as of May 15, following five consecutive days of increase of a combined 7,500 yuan/mt. Quotes at lower prices were heard in the market. Prices of praseodymium-neodymium metal also rallied for five straight days and came in at 340,000-342,000 yuan/mt as of May 15. 

The elevated prices of light rare earths have sidelined some consumers, which may, in turn, weigh on the prices in the weeks ahead. But any downsides in the prices would be limited as they remain at around the lowest levels in three years.