Prices of Rare Earth Rose Rapidly Due to the Fundamentals and Cost after the May Day

Published: May 13, 2022 11:49

Source: SMM

Save

The supply of rare earth recycling and ion ore was tight after the May Day holiday. Downstream magnetic material enterprises purchased on rigid demand for long-term orders.

SHANGHAI, May 12 (SMM) -

The supply of rare earth recycling and ion ore was tight after the May Day holiday. Downstream magnetic material enterprises purchased on rigid demand for long-term orders. The demand for rare earth metal spot increased slightly and the support of supply and demand fundamentals of rare earth was strong. The bullish sentiment was strong in the market and the upstream separation enterprises were unwilling to sell. Some enterprises hoarded goods with spot prices of rare earth rising rapidly. The spot prices of PrNd oxide in the market rose from 845,000 yuan/mt to 915,000 yuan/mt, an increase of 8% within two weeks after the May Day.

On the one hand, the demand for downstream orders was weak in March and April, while NdFeB magnet enterprises reduced their production, leading to the short supply of NdFeB scrap, which was transmitted to the scrap recycling enterprises.

On the other hand, scrap prices rose, with the market price of praseodymium scrap reaching 860,000-871,000 yuan/mt after the May Day, an increase of over 10% compared to the price before the holiday. The cost of scrap recycling enterprises increased, resulting in losses in enterprises.

Raw material inventory at large-scale scrap recycling enterprises in Jiangxi was sufficient, with only a slight decrease in the operating rates in May. In addition to this, some small and medium-sized scrap recycling enterprises were forced to reduce or even stop production. Only a few scrap recycling companies belonging to large rare earth groups had sufficient supply of raw materials with stable operating rates.

The supply of ion ore was also tight, with the poor output of rare earth ore from Myanmar in May. On the one hand, clearance of auxiliary materials was slow with steps like quarantine and decontamination; on the other hand, Myanmar is in the rainy season and the efficiency of mine output reduced. Domestic rare earth fundamentals are expected to move in an upward trend in May.

Spot

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Jan 30, 2026 18:24

Chile Unveils National Critical Minerals Strategy Amid Global Demand Surge

Chile has released its National Critical Minerals Strategy, clearly positioning itself as a stable supplier of minerals. Currently, driven by artificial intelligence, the development of new technologies, and the energy transition, global demand for these critical minerals continues to grow. The announcement of this strategy holds particular significance in the weeks before President Boric leaves office, highlighting Chile’s intention to transition from over-reliance on the copper industry toward adapting to a decarbonized economy and achieving resource diversification. Chile has identified 14 critical minerals, specifically covering copper, lithium, molybdenum, rhenium, cobalt, rare earths, antimony, selenium, tellurium, gold, silver, iron ore, boron, and iodine. Based on Chile’s current position in the global market, these 14 minerals are categorized into three groups: The first category includes copper, lithium, molybdenum, and rhenium. Their respective shares in global supply are 23%, 20.4%, 14.6%, and 46.8%, and other major economies have also designated these minerals as critical. The second category consists of minerals that are currently not produced or only produced in small quantities, including cobalt, rare earths, antimony, selenium, and tellurium. The third category comprises minerals already produced domestically in Chile with the potential to expand their role in the global value chain, such as gold, silver, iron ore, boron, and iodine.

Jan 30, 2026 18:24

Jan 30, 2026 17:16

Overseas Pr-Nd offers surged rapidly, countries accelerated rare earth mine development [SMM Rare Earth Overseas Weekly Review]

This week, overseas prices continued to rise due to multiple factors, and shipments tightened further. Key developments emerged in raw ore mining across the US, Asia, and Latin America. The US government strengthened domestic rare earth capacity through large-scale funding, a Malaysia-France cooperation project achieved substantial progress, Brazil formulated a national rare earth strategy to unlock resource potential, and India considered adjustments to mining policies to enhance extraction efficiency. These measures collectively reflect countries' heightened focus on rare earth supply chain security, though technological, cost, and capacity bottlenecks remain widespread challenges.

Jan 30, 2026 17:16

Jan 30, 2026 10:15

India Mulls Tightening Mineral Rights Auction Policy to Boost Mining Output

Two informed sources revealed that to accelerate mining production, India is considering tightening its mineral rights auction policy to exclude mining enterprises that fail to apply for mining permits long after winning the auction. Official data show that since 2015, the Indian government has auctioned 594 mineral blocks, of which only 82 are in production, accounting for less than 14%. Sources said an internal government audit found that over the past five years, about 50 enterprises had not commenced mining after acquiring blocks, with some even failing to apply for mining permits. The two informed sources declined to be named as they were not authorized to speak. The Indian Ministry of Mines also did not respond to an email request for comment.

Jan 30, 2026 10:15