SHANGHAI, Aug 25 (SMM) –Rare earth prices have risen since the first half of the year. For instance, the average spot price of SMM praseodymium-neodymium oxide stood at 613,500 yuan/mt on August 24, an increase of 50% from the beginning of the year.
The fourth round of rare earth price increase this year was mostly driven by strong downstream demand, and supply/demand structure is likely to be rebalanced.
Demand for new energy vehicles and wind power has continued to increase this year, boosting demand for rare earth. China is paying more and more attention to rare earth resources, and the "Regulations on Rare Earth Management" will be issued in the second half of the year, which will continue to promote the improvement of the rare earth industry. As China strives to achieve carbon peak by 2030 and carbon neutrality by 2060, demand for rare earth functional materials, especially rare earth magnetic materials, will grow significantly.
The rare earth permanent magnet segment in the Chinese stock market trended higher on August 25 following brief downward corrections, with the share prices of many related listed firms recording significant gains. Companies that are mainly involved in the rare earth permanent magnet sector delivered positive H1 earnings results.