SHANGHAI, Aug 12 (SMM) – Prices of rare-earth products across Chinese markets continued to grow last week, as the possible purchases for strategic reserves and escalating tensions between the US and China improved morale among sellers, but gains were limited by weak demand.

SMM assessments showed that prices of praseodymium-neodymium oxide rose from 300,000-305,000 yuan/mt at the start of the week to 312,000-315,000 yuan/mt as of Friday August 9. Prices of neodymium oxide climbed to 314,000-317,000 yuan/mt.

Prices of dysprosium, terbium, gadolinium and holmium oxides also gained last week. As of August 9, prices of dysprosium oxide stood at 1.94-1.96 million yuan/mt, with those for terbium oxide at 3.96-4 million yuan/mt.

Prices of gadolinium oxide stood at 173,000-178,000 yuan/mt, while those for holmium oxide were at 385,000-390,000 yuan/mt.

Some sellers scaled back their offers, as higher prices sidelined downstream buyers. This led to cheap supplies available on the market.

Despite higher quotes from producers, weak fundamentals kept spot trades of light rare-earth products quiet. SMM expects limited upside room in prices of such materials.

Raw material shortages, meanwhile, will help maintain solid growth in prices of medium, heavy rare-earth products, such as dysprosium terbium oxides.