Rare Earth Prices May Stabilise in Mar amid Falling Supply and Demand

SHANGHAI, Mar 9 (SMM) - The Rare Earth Office interviewed leading manufacturers regarding market prices on March 3, demanding them not to engage in marketing hype. Currently speaking, the main driving force that lifts rare earth products like PrNd alloy lies in the supply tightness, and the fundamentals play an increasingly important role in determining the prices as most traders have left market, resulting in less hoarding activities. Nonetheless, this piece of news, unlikely the release of government reserves and adjusting mining quotas, seemed to have little material impact on the supply and demand of rare earth.

Market demand was muted recently. The first round of post-CNY holiday centralised procurement among magnetic material companies have ended, and most purchased PrNd alloy in small orders around end February or early March. On the supply side, new scraps from NdFeB magnetic material companies will be available in mid-March, easing the supply tightness to some extent. Apart from this, the supply of middle and heavy rare earths as well as light rare earths are all relatively tight, and the separation plants in Jiangxi and Inner Mongolia have already been reducing their operating capacities.

The mainstream prices of rare earth have been stable as a while, with some downside potentials amid falling supply and demand. The prices of PrNd oxide and alloy fluctuated according to the small order cycle of magnetic material companies, with prices ranging between 1.09-1.11 million yuan/mt and 1.35-1.39 million yuan/mt respectively.

It is expected that the demand for mainstream oxide and metal will remain subdued in March as the stocks built in March have not been fully consumed. The prices will maintain its stability with some downside potentials.