SHANGHAI, Jul 1 (SMM) – Resumption of US-China trade talks reignited market confidence and may keep prices of rare earth stable this week. A shortage of raw materials will continue to support prices of medium, heavy rare earth oxides in the short term.
Spot prices of rare earth products eased in the week to Friday June 28 as market participants were cautious ahead of the G-20 summit.
Cash flow issues drove some traders and small producers of light rare earth to destock at lower prices, but an uncertain outlook across downstream consumers kept overall trades weak. Amid a relatively optimistic mood, large producers reduced shipments last week.
As of Friday June 28, prices of praseodymium-neodymium oxide slid to 340,000-350,000 yuan/mt, from 365,000-370,000 yuan/mt on Monday June 24, SMM assessed. Prices of neodymium oxide also fell, to 342,000-352,000 yuan/mt, from 367,000-372,000 yuan/mt.
Prices of dysprosium oxide dipped to 1.93-1.96 million yuan/mt as of Friday June 28, from 1.98-2.02 million yuan/mt on Monday. Prices of terbium oxide lost an average 70,000 yuan/mt last week to stand at 4.08-4.13 million yuan/mt as of Friday, and prices of gadolinium oxide eased 7,500 yuan/mt, standing at 195,000-200,000 yuan/mt.
Market participants expected China’s major production area of rare earth, Jiangxi province to restart the mining of ion-absorbed rare earth, mainly heavy rare earth, in the south as the province highlighted the regulation and high-quality development of the strategic minerals. This may help to ease supply tightness in the long run.