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Rare Earth Prices Likely to Trend up in October amid Shortage of Energy 【SMM post-holiday review】
Oct 8, 2021 13:15CST
Source:SMM
The prices of many rare earth products rose under the influence of the power rationing right before the National Day holiday. The transaction prices of PrNd oxide once reached 600,000 yuan/mt, and the transaction prices of PrNd alloy rose slightly, touching 750,000 yuan/mt with credit. Spot medium and heavy rare earth oxides such as terbium oxide and dysprosium oxide are even harder to find. Some holders quoted up to 9 million yuan/mt for terbium oxide, 2.75 million yuan/mt for dysprosium oxide. The prices of other products such as holmium, gadolinium, and yttrium-erbium also rose slightly. However, the trading activity of the entire rare earth market was muted due to sluggish downstream demand.

SHANGHAI, Oct 8 (SMM) - The prices of many rare earth products rose under the influence of the power rationing right before the National Day holiday. The transaction prices of PrNd oxide once reached 600,000 yuan/mt, and the transaction prices of PrNd alloy rose slightly, touching 750,000 yuan/mt with credit. Spot medium and heavy rare earth oxides such as terbium oxide and dysprosium oxide are even harder to find. Some holders quoted up to 9 million yuan/mt for terbium oxide, 2.75 million yuan/mt for dysprosium oxide. The prices of other products such as holmium, gadolinium, and yttrium-erbium also rose slightly. However, the trading activity of the entire rare earth market was muted due to sluggish downstream demand.

During the National Day holiday, some large magnetic material factories suspended production, and inquiries were also scarce. Some rare earth smelting and separation companies said that due to the sharp increase in raw material prices, the prices of some products will be raised by 5 - 10% after the holiday.

The supply of raw materials for most rare earth smelting and separation enterprises in the south has been quite tight, especially the separation plants that rely completely on outsourcing for raw materials will be under heavy production pressures this month. Considering that it will take about one month for raw materials to be processed into finished products, perhaps the rare earth supply will improve slightly in November. In the downstream market, the demand for high-performance rare-earth permanent magnets continues to be stable, but the demand for mid and low-end rare-earth permanent magnets is relatively sluggish.

China Northern Rare Earth (Group) will announce the listing price this month, and it is expected that the rare earth market as a whole will remain on the sidelines on the first day after the holiday. At present, the upstream sector has more say in pricing. SMM believes that under the current energy shortage situation, the rare earth raw material supply faces greater risks. With the approach of Double 11 shopping festival, some mid and low-end magnetic material companies may create more stocking demand, pushing up the prices of rare earth products.  The rare earth market may usher in another wave of price hike in October.
 

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