Rare Earth Prices’ Momentum Weakening after Resuming Operation from CNY Holiday

SHANGHAI, Feb 6 (SMM) - The prices of rare earths rose slightly compared with before the Chinese New Year (CNY) holiday. Post the holiday, inquiries for rare earth oxides were active, which quickly ticked up the prices of PrNd oxide. Downstream magnetic material enterprises were relatively late in resuming the production, and mainly relied on their existing stocks, hence the transactions of PrNd alloy were less than expected. Last Wednesday, the Northern Rare Earth disclosed its guidance prices of rare earth products in February 2023, which flat from those in January.

According to SMM research, as of February 3, in terms of light rare earth products, the prices of PrNd oxide (daily average price) stood at 747,500 yuan/mt, up 25,000 yuan/mt from before CNY holiday; PrNd alloy 900,000 yuan/mt, up 225,00 yuan/mt; neodymium oxide 800,000 yuan/mt, up 10,000 yuan/mt; neodymium metal 980,000 yuan/mt, up 15,000 yuan/mt; lanthanum oxide 6,650 yuan/mt, flat; and cerium oxide 6,800 yuan/mt, flat. For heavy rare earth, dysprosium iron prices (daily average) stood at 2,450,000 yuan/mt, flat from before CNY holiday; gadolinium iron 440,000 yuan/mt, up 15,000 yuan/mt; and holmium iron 950,000 yuan/mt, flat.

On the supply side, the sales activities of most enterprises were suspended during the CNY holiday, but the production remained normal. On the demand side, most downstream magnetic material companies still had some in-plant raw material stocks following active restocking ahead of the holiday. Therefore, the alloy market was relatively quiet. Since the latest guidance prices disclosed by Northern Rare Earth were the same as those in January, the market players turned slightly bearish. And the prices of rare earths stabilised or even fell slightly since last Wednesday. SMM predicts that the follow-up rare earth prices may remain stable.