Supply shortage woes keep prices of medium-to-heavy rare earth robust

SHANGHAI, Mar 29 (SMM) – Concerns about supply shortage on domestic smaller output quotas continued to bolster prices of medium-to-heavy rare earth, especially products of dysprosium, terbium, gadolinium, and holmium, in the week ended Friday March 29. 

As of March 29, prices of dysprosium oxide climbed to 1.46-1.48 million yuan/mt, up by an average 55,000 yuan/mt from a week earlier, SMM assessed. Prices of terbium oxide stood at 3.1-3.15 million yuan/mt as of March 29, up by an average 20,000 yuan/mt on the week. 

Actual trades moderated as downstream consumers hesitated over soaring prices, and this slowed growth in prices of dysprosium and terbium oxides in the latter half of the week. However, the market remained bullish about prices in the near future. 

Tight supply and brisk trades buoyed prices of gadolinium oxide to 140,000-142,000 yuan/mt as of March 29, compared with 135,000-137,000 yuan/mt a week ago. 

Greater enquires encouraged sellers of holmic oxide to firm up offers this week. As of Friday, trades occurred at around 310,000 yuan/mt, compared with 280,000-290,000 yuan/mt on the previous Friday. 

Prices of light rare earth products, such as praseodymium and neodymium oxides barely changed this week as sellers held offers steady amid sufficient supplies. Trades of neodymium oxide occurred mostly at 290,000-295,000 yuan/mt as of Friday March 29. 

SMM expects a further upward room in prices of medium-to-heavy rare earth, and limited upside momentum in light rare earth products next week.