Lower VAT, sufficient supplies lower prices of light rare earth

SHANGHAI, Apr 4 (SMM) – Adequate supplies and lower value-added taxes (VATs) from April 1 lowered prices of light rare earth products in the week to Thursday April 4. 

As of April 4, prices of lanthanum oxide and cerium oxide lost some 300 yuan/mt week on week, to stand at 12,200-12,700 yuan/mt, SMM assessed. Prices of praseodymium-neodymium oxide fell to 276,000-280,000 yuan/mt as of Thursday, compared with 285,000-290,000 yuan/mt on Friday March 29. 

Downstream consumers demanded lower offers as they expected VAT cuts to reduce costs of light rare earth. Prices of medium-to-heavy rare earth, however, held steady amid supply shortage woes, which may linger in the short run. 

SMM expects further downside room in prices of light rare earth products next week.