News Support Weakened, Rare Earth Metal Prices Surged First and Then Fell [SMM Analysis]

Published: Jul 4, 2024 15:20

Source: SMM

Save

Last weekend, supported by the positive news of the release of national rare earth management regulations, rare earth oxide prices rose rapidly.

Last weekend, supported by the positive news of the release of national rare earth management regulations, rare earth oxide prices rose rapidly. Rare earth metal plants followed suit to raise their quotations. The offer of Pr-Nd alloy increased from 445,000-448,000 yuan/mt to nearly 460,000 yuan/mt, and that of dysprosium-iron alloy rose from 1.67 million yuan/mt to 1.81 million yuan/mt.

However, the support from the news faded quickly. The release of the management regulations did not impact the current market supply and demand. The sluggish downstream demand could not support the rapid rise in raw material prices, and high-priced transactions in the market were limited. This led to a significant decline in rare earth prices this week, with rare earth metal market quotations returning to last Friday's levels.

Currently, the order prices for magnet materials are generally 20,000-30,000 yuan/mt lower than the spot prices of Pr-Nd alloy. The market competition was quite fierce, and the operating rate of some small and medium-sized magnet material factories in June declined compared to May. End-user orders in July were lower than expected. With the lack of demand support, rare earth metal prices are expected to be under pressure in the future.

Market forecast Market review

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 for 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

11 mins ago

Mitsuba Supplies Rare-Earth-Free Sunroof Motors to German Automaker, Aims for Wider Adoption

[SMM Rare Earth Flash] Japan's auto parts maker Mitsuba has begun mass supply of rare-earth-free sunroof drive motors to a German automaker, marking the latest advance in the global automotive industry's push for rare-earth-free solutions. The motor adopts a redesigned magnetic circuit structure and non-rare-earth magnetic materials, achieving torque and durability comparable to conventional products without using rare earth elements such as neodymium. Currently, the product has been installed in multiple car models produced by the German automaker in Europe. Mitsuba plans to extend its rare-earth-free technology to on-board motor products such as wipers and power windows in the future, aiming to reduce supply chain risks and cost fluctuations.

11 mins ago

34 mins ago

Kerala Allocates $11.5M for Rare Earth Mineral Corridor, Signals India's Strategic Mineral Push

[SMM Rare Earth Express] The government of Kerala, India, announced that it has allocated 1 billion rupees (about $11.5 million) in the 2026–2027 budget and plans to build a rare earth and critical mineral corridor centered on Kollam, to promote mineral processing and the development of the critical mineral industry, and enhance India’s critical mineral supply chain capacity. However, the project is still in the planning stage. The construction plan for a rare earth processing plant, industry partners, offtake agreements, and specific timetables have not yet been disclosed, nor has the participation of IREL (India) or international enterprises been confirmed. Industry insiders believe that the 1 billion rupees can only serve as initial startup capital, falling far short of the tens of billions of US dollars needed to build a complete industry chain covering rare earth separation, metal, and magnet manufacturing. Therefore, at this stage, it more represents a policy signal for India to strengthen its strategic layout for critical minerals rather than a mature industrial investment project.

34 mins ago

35 mins ago

Algae Doubles Rare Earth Concentration, Offers Green Extraction Method

[SMM Rare Earth Flash] A research team from Southern Illinois University in the US has discovered that algae can increase the concentration of rare earth elements by more than double, offering a new approach beyond chemical processes for green rare earth extraction and potentially helping the US strengthen its critical minerals supply chain. The researchers added rare earth-containing rock powder and microalgae to a simulated river system, and the experimental results showed that the algae could absorb and concentrate rare earth elements, which were then recovered through a patented process. This technology is expected to reduce reliance on chemical agents such as sulphuric acid, and can be applied to the recovery of rare earths from secondary resources such as coal ash, mine tailings, and electronic waste. The team is currently testing more algae species and plans to apply for funding from the US National Science Foundation to further advance the research.

35 mins ago