Medium, heavy rare earth oxides led price gains, subdued metal trades

SHANGHAI, Jun 2 (SMM) – Rare earth prices strengthened last week. Prices of praseodymium-neodymium products trended higher and gradually stabilised. Traded prices and quotes of terbium and dysprosium edged up, and trades were limited. Prices of didymium oxide and praseodymium-neodymium alloy are expected to stabilise this week. Prices of terbium oxide and dysprosium oxide will continue to rise, and prices of holmium, gadolinium and erbium will weaken.

Trades of rare earth oxide were brisk among traders. Metal factories and magnetic materials factories purchased modestly at lows, standing on the sidelines, slowing shipments of rare earth metals.

Imports and overseas demand have weakened recently. Domestic magnetic materials companies saw a slight decrease in new orders and domestic supply declined. Jiangxi shut down some raw ore and scrap separation plants in April. Some scrap plants suspended purchases of scrap materials, and some scrap plants worked through inventory. Some separation plants have plans to halt production amid risk of declines in rare earth prices. Separation plants slowed purchases of ore to avoid losses, and most of the plants purchased as needed. The current domestic rare earth market will remain in a tight balance.

On the light rare earth front, didymium oxide was quoted at 485,000-490,000 yuan/mt as of Friday May 28, with several trades around 490,000 yuan/mt. Praseodymium-neodymium alloy was quoted at 603,000-68,000 yuan/mt, with some trades at 603,000 yuan/mt on a cash payment basis and 608 ,000 yuan/mt on a credit basis. Inquiries for single praseodymium increased last week. Traded prices of praseodymium oxide stood at 520,000 yuan/mt last week, and spot cargoes were hardly available. As of Friday May 28, neodymium oxide was quoted at 490,000-500,000 yuan/mt with trades quiet, and metal praseodymium was quoted at 670,000-680,000 yuan/mt, flat on the week. Metal neodymium was quoted at 600,000-610,000 yuan/mt.

On medium, heavy rare earth, spot dysprosium oxide with prices of below 2.45 million yuan/mt was hardly available, and mainstream traded prices stood at 2.45-2.5 million yuan/mt on May 28. Dysprosium-iron alloy was quoted at 2.45-2.48 million yuan/mt; terbium oxide was quoted at 6.7-6.8 million yuan/mt, and terbium metal was quoted at 8.1-8.3 million yuan/mt; sellers are holding back cargoes due to market optimism.