Domestic Rare Earth Mining Quota Increased Steadily

SHANGHAI, Mar 28 S(MM) - The domestic rare earth mining quota has continued to increase steadily in 2023. At the same time, the imports of overseas rare earth also increased significantly. At the beginning of last week, under the influence of increasing inquiries, the transaction prices of rare earth picked up slightly. However, due to the weak downstream demand, most industry players were still pessimistic about the future market. Cargo holders lowered their prices to promote transactions and thus the rare earth prices rose slightly compared with the previous week. The supply of oxides remains stable, but the serious losses and the weak demand for alloy forced some metal factories to reduce production. Some metal factories in Baotou have stopped production.

At present, the rare earth market continues to be weak and the raw material inventory of downstream magnetic material enterprises remains low. The bearish sentiment in the market is strong, hence cargo holders sell goods at low prices. SMM predicts that the short-term rare earth prices will continue to run weakly.