SHANGHAI, Nov. 18 (SMM) – Traded prices for rare earth products edged lower last week, despite higher prices released by large enterprises in the industry, since downstream demand remained sluggish. Most SMEs have suffered poor sales for a long time and were forced to lower prices given financial pressure.
SMM learnt that prices for didymium oxide were mainly at RMB 330,000/mt, with deals rarely done at RMB 340,000/mt. Prices for praseodymium-neodymium alloy were also low at RMB 425,000/mt, with a few goods sold even lower at RMB 415,000/mt. Dysprosium oxide prices also fell to RMB 1,900,000-1,950,000/mt.
Whilst the State Reserve Bureau (SRB) has not yet announced any details about stockpiling rare earth, the climbing prices released by rare earth giants in China raised speculation on the issue. Some market players believed that the weak market could not afford continuous rises in prices, and the price hikes by those large companies may have nothing to do with the rare earth reserve. But some held that as the SRB has not decided the prices for stocking rare earth, leading rare earth companies may try to affect the decision of SRB by raising prices. Many market players expressed their concerns over market outlook, saying that the sluggish consumption may lead to an immediate price fall after the SRB announced its final decision on rare earth stocking.
SMM believes that the details about reserving rare earth will unlikely be released soon, and prices for rare earth products should remain unimproved given weak demand.