[SMM Analysis] The resumption of work on magnetic materials is slow and the market inquiries for rare earth metals are relatively quiet

After returning from the Chinese New Year holiday, affected by the lack of downstream inquiries, the rare earth raw material market continues to operate under pressure. There are only a few price-lowering inquiries in the market. Both supply and demand parties mainly make tentative quotations, and the overall market transactions are sluggish.

I learned from some magnetic materials companies that they will not consider purchasing raw materials before the National Day of the National Day. In addition, the recent continued decline in raw material prices has aggravated the downstream sentiment of buying up rather than buying down. As of this Friday, the market price of praseodymium and neodymium metals was as low as around 470,000/ton. The sales person in charge of a large metal factory said that the sharp market drop after the Chinese New Year indeed exceeded many people's expectations. Affected by the sharp price drop, the supply of low-priced goods in the market has increased. At the same time, as the National Day is approaching, terminal companies are about to officially resume work one after another, and the market trading atmosphere is expected to recover. It is expected that as market activities pick up in the future, metal prices are expected to stop falling and stabilize.

SMM learned from the market that magnetic material companies started bidding one after another. A large magnetic materials factory in Ningbo said that the remaining raw material inventory of the factory is enough to maintain until early March. If the market transaction improves after the National Day, after nearly a week of price reductions, the rare earth market may bottom out and stabilize, and replenishment will be carried out at that time. SMM will continue to pay attention to the subsequent inventory replenishment situation of magnetic material companies.