Rare Earth Prices Rose Overall, Losses for Magnetic Material Companies Intensified [SMM Analysis]

Last week, rare earth prices surged rapidly, with Pr-Nd oxide rising by 6.9%, dysprosium oxide by approximately 5%, and terbium oxide by 7.4%.

At the beginning of the week, China Northern Rare Earth increased its September listing prices. Pr-Nd oxide was priced at 403,200 yuan/mt, up 4.78% MoM from August 2024, while Pr-Nd alloy was priced at 500,000 yuan/mt, up 4.6% MoM from August 2024. Meanwhile, major magnetic material companies continued bidding for Pr-Nd alloy, increasing market demand for Pr-Nd and boosting expectations among holders, leading to a rapid rise in Pr-Nd quotations.

Due to increased downstream demand, inquiries for dysprosium and terbium products also rose. According to some mining and trading companies, auxiliary material exports are blocked, the duration of which is unclear, potentially impacting the operation of rare earth mines in Myanmar.

The rapid increase in rare earth prices has also triggered some market participants' concerns about high prices. It was understood that the order prices of downstream magnetic material companies remained low, intensifying losses. They remained cautious about purchasing high-priced rare earth materials, but holders' quotations were firm. With the peak season effect, SMM expects rare earth prices to continue fluctuating upward.