Pr-Nd oxide price extended losses last week. During last week, mainstream price of Pr-Nd oxide dipped from 378,000-382,000 yuan/mt on February 22 to 362,000-364,000 yuan/mt on February 29 down 4.5% WoW. Pr-Nd alloy price declined from 480,000-485,000 yuan/mt on February 22 to 453,000-457,000 yuan/mt on February 29, down 5.7% WoW.
Post-holiday orders of magnetic material companies less than expected and falling prices led to thinner actual transactions of Pr-Nd products.
Rare earth prices continued to fall after the Chinese New Year holidays, but prices of medium and heavy rare earth started to rally on February 23 due to positive news. At the beginning of last week, light and heavy rare earth prices were mixed. Despite low raw material stocks, Pr-Nd alloy producers were less willing to restock as sustained Pr-Nd oxide price declines made them bearish towards future prices. Moreover, sellers also rushed to ship cargoes due to pessimism. Pr-Nd product prices in downward spiral.
After the Lantern Festival, few orders from magnetic material companies were seen as a result of sustained raw material price slip. Actual rare earth trading sentiment appeared dismal with wait-and-see stance dominating.
SMM expected that muted demand may put short-term rare earth prices under pressure.
