SHANGHAI, Jan 10 (SMM) - Generally, the recent trades in the rare earth market remained muted. Separation companies and scrap recycling companies previously cut their production in December, 2022 for varied reasons including year-end maintenance, shakedown tests, and losses. As a result, the spot supply of rare earth oxides became insufficient, sending the prices of rare earth on a persistent upward path. The transaction prices of PrNd oxide rose from 665,000 yuan/mt at the beginning of last month to 720,000 yuan/mt this January. At the same time, as logistics companies started to close for holidays, the increase of orders for magnet materials slowed down, hence the rare earth buyers declined to accept high-priced raw materials, and mostly purchased as needed. As such, the trades in the market remained slack.

According to SMM survey, although many rare earth enterprises cut or suspended the production in December, most of them have resumed their production this month, and said they will maintain normal production during the Chinese New Year holidays. Most magnetic material enterprises, who basically completed pre-holiday stockpiling of raw materials, will be closed for holidays since this week. It is expected that rare earth prices may remain stable in the short term.