SHANGHAI, Jun 3 (SMM) – China's imports of rare earth ores are likely to decline as domestic higher tariffs on US goods took effect on June 1. This is expected to support prices of light rare earth products, which accounted for most of the consumption for rare earth ores imports.

However, prices of light rare earth products, such as praseodymium-neodymium oxide, will see limited upside room as the market showed signs of slower growth after brisk trades in the previous two weeks. 

As of Monday June 3, prices of praseodymium-neodymium oxide stood at 335,000-345,000 yuan/mt, up 5,000 yuan/mt from Friday May 31 and from a week ago. 

US rare earth ore entering China was subject to 25% customs duties from June 1, as a result of Beijing's countermeasures against US tariffs.

For medium-to-heavy rare earth products, shortage of raw materials will intensify and expand upside room in rare earth prices, after the import ban on Myanmar ore. 

SMM assessed that prices of dysprosium oxide held stable at 1.95-2 million yuan/mt as of Monday June 3, unchanged during the previous week but up 20,000 yuan/mt from Friday May 24. Prices of terbium oxide rose 30,000 yuan/mt from Friday May 31, standing at 3.63-3.68 million yuan/mt as of Monday June 3. 

Prices of erbium oxide jumped 12,500 yuan/mt last week and posted 165,000-175,000 yuan/mt as of Monday June 3 as supplies failed to meet domestic demand.