Northern Rare Earth Group Set The Tax-Excluded Trading Price Of Rare Earth Concentrate In Q4 At 20,536 Yuan/Mt, Up 1.78% QoQ

SHANGHAI, Oct 13(SMM) – Northern Rare Earth Group sets the tax-excluded trading price of rare earth concentrate in Q4 at 20,536 yuan/mt, up 360 yuan/mt or 1.78% QoQ. After the national holiday, the listing prices and the transaction prices of rare earth concentrate in Q4 announced by Northern Rare Earth Group showed an overall slight increase, which is conducive to boosting confidence on subsequent market prices. SMM predicts that rare earth prices may remain an upward trend in October.

Northern Rare Earth Group announced on the evening of October 8, saying that according to calculations based on the rare earth concentrate pricing method and the price of rare earth oxides in Q3 of 2023, the company’s 18th general manager office meeting of 2023 held on October 8, 2023 reviewed and approved the Q4 tax-excluded rare earth concentrate transaction price of 20,536 yuan/mt (dry volume, REO=50%). For every 1% increase or decrease in REO, the tax-excluded price will change by 410.72 yuan/mt. Northern Rare Earth Group will re-sign the Rare Earth Concentrate Supply Contract with Bao Gang United Steel Co., Ltd. and execute rare earth concentrate-related transactions in accordance with the newly signed contract.

An announcement showed that the company held the 25th meeting of the eighth board of directors and the first extraordinary general meeting of shareholders in 2023 on March 14 and March 30 respectively, during which they reviewed and approved the Proposal On The Pricing Mechanism For Daily Related Transactions Of Rare Earth Concentrates And Its Implementation In 2022 And Forecast In 2023. The company and the related party Bao Gang United Steel Co., Ltd. agreed that starting from April 1, 2023, under the condition that the rare earth concentrate pricing formula remains unchanged, in the first ten days of the first month of each quarter, managers will calculate and adjust the rare earth concentrate price according to the pricing formula. After that, the two parties will re-sign the rare earth concentrate supply contract or supplementary agreement and make an announcement.

Northern Rare Earth Group announced on July 9 that based on the rare earth concentrate pricing method and the price of rare earth oxides in the Q2 of 2023, in the company’s 13th General Manager Office Meeting in 2023 held on July 9, the tax-excluded rare earth concentrate trading price in the Q3 of 2023 was approved to be adjusted to 20,176 yuan/mt (dry volume, REO = 50%).

For every 1% increase or decrease in REO, the tax-excluded price will change by 403.52 yuan/mt. The company will re-sign the Rare Earth Concentrate Supply Contract with Bao Gang United Steel Co., Ltd. and execute rare earth concentrate-related transactions in accordance with the newly signed contract.

Northern Rare Earth Group’s previous announcement showed that based on the rare earth concentrate pricing method and the price of rare earth oxides in the Q1 of 2023, it was calculated and approved by the company’s 7th General Manager Office Meeting in 2023 held on April 7, 2023, that the tax-excluded trading price of rare earth concentrates was adjusted to 31,030 yuan/mt (dry volume, REO = 50%) in Q2 of 2023. For every 1% increase or decrease in REO, the tax-excluded price will change by 620.6 yuan/mt. And Bao Gang United Steel Co., Ltd. needs to perform decision-making procedures.

Northern Rare Earth Group’s previous announcement showed that the price of rare earth concentrate-related transactions in the Q1 of 2023 and the annual estimated price in 2023 were calculated according to the above formula and the price of rare earth oxides in the Q4 of 2022. After negotiation between the two parties, the tax-excluded transaction price of rare earth concentrate in Q1 of 2023 was 35,313 yuan/mt (dry volume, REO=50%). For every 1% increase or decrease in REO, the tax-excluded price will change by 706.26 yuan/mt.

Entering Q4 of 2023, the transaction price of rare earth concentrates ceased the decline trend in Q2 and Q3 and showed a slight increase.

Taking the price trend of SMM rare earth carbonate as an example, on September 28, its price was 42,000-42,200 yuan/mt, with an average price of 42,100 yuan/mt, up 100 yuan/mt from the previous trading day. During the National Day holiday, the rare earth market was sluggish, and most factories maintained normal production. Some magnetic material companies said that their orders were scheduled until mid-October. However, due to the off-duty of the sales department, there were basically no prices reported in the rare earth market. On the day after the holiday, the price of rare earth raw materials rose slightly compared with that before the holiday, resulting from fewer quotations from cargo holders and downstream active inquiries, as well as boosting market confidence driven by rising Pr-Nd listing prices in October released by Northern Rare Earth Group.