Why does praseodymium and neodymium oxide soar all the way?

If you look at the rare earth market recently, you will find that praseodymium and neodymium oxide almost outshine others, and its price has soared all the way. On December 1st, the spot price of SMM praseodymium and neodymium oxide averaged 987500 yuan per ton, up 110% so far this year.

"Click to view SMM metal prices

In addition, the transaction price of rare earth bidding showed a continuous upward trend. on November 17, in the special auction of Baotou rare Earth products Exchange, four targets totaled 20 tons, and the metal praseodymium and neodymium all reached the alarm price, with a bid price of 930000 yuan per ton. an increase of 7 per cent from 873000 yuan per ton in early November. Although the continuous rise in prices has brought obvious cost pressure to the lower reaches, due to the strong demand and tight supply of new energy vehicles, wind energy and industrial motors, praseodymium and neodymium oxide prices are expected to remain strong in the fourth quarter.

Why is praseodymium and neodymium oxide so hot in the market? On the one hand, the value of praseodymium and neodymium oxide continues In recent years, the role of praseodymium and neodymium oxide in the domestic economic structure has gradually emerged. At the same time, it is also the concrete embodiment of the relationship between supply and demand in the rare earth market. With the favorable national policy, rare earth market confidence gradually increased, rare earth downstream industry demand is very strong, promoting praseodymium neodymium oxide prices continue to rise. On the other hand, new business type has a strong demand for praseodymium and neodymium oxide New energy vehicles, wind power generation, energy-saving appliances, intelligent robots and other applications are expected to continue to develop. It is estimated that by 2025, with the increase of permeability, the demand for praseodymium and neodymium oxide will exceed 80,000 tons.

The latest statistics from relevant institutions show that chips grew by about 10 per cent in October from September, and retail sales of narrow passenger cars in October are expected to be 1.72 million, up 8.8 per cent from September. In addition, of the 1.24 million passenger vehicles with year-on-year increments from January to October, new energy vehicles contributed an increase of 1.57 million, accounting for 126% of the total increment, indicating that new energy vehicles are becoming the main driving force in the increase in automobile sales.

As the amount of praseodymium and neodymium oxide used by new energy vehicles is three to five times that of traditional cars, the rapid growth of new energy vehicles will greatly boost the demand for rare earths, which is expected to grow further with the recent easing of power cuts and the effect of peak season. drive up prices.

Since the beginning of this year, the cumulative increase of praseodymium and neodymium oxide has exceeded 90 Not only that, praseodymium-neodymium oxide prices soar at the same time, the market supply is very tight, such as praseodymium-neodymium oxide mainstream enterprise orders have been full, new orders continue to increase, the market spot shortage. The price of praseodymium and neodymium oxide continues to rise this year, even more than dysprosium oxide, which means that related companies will become the biggest winners in this round of price surge. For example, the annual production of praseodymium and neodymium oxide in northern China is about 10000 tons. Due to the rise in praseodymium and neodymium prices, the company's

Given that the global epidemic begins to be brought under control in 2022, a sustained economic recovery will emerge. Consumption of praseodymium and neodymium oxide is expected to grow by at least 15%, or 63000 tons, next year. Some analysts predict that the price of praseodymium and neodymium oxide is likely to reach more than 800000 yuan / ton. The reason is that the possible sources are cars, robots and mobile phones, and the growth of demand is inextricably linked to the improvement of the overall economic situation, so it is inevitable that praseodymium and neodymium oxide prices will continue to rise.

This year, China's economy has continued to recover steadily, and the supply and demand cycle has been smooth, laying a good foundation for the sustained rise in the prices of rare earth materials such as praseodymium and neodymium oxide in 2022. With the implementation of policies such as the rare Earth regulations this year or the gradual introduction of new policies, it is expected to ensure the medium-and long-term high-quality development of the rare earth industry, thus promoting a sustained rise in the price of rare earths such as praseodymium and ne