Stalemate and Game Between Upstream and Downstream; Worsening Inversion of Rare Earth Metals [SMM Weekly Review]

Published: Jan 09, 2025 14:38 (GMT+8)
[SMM Weekly Review: Stalemate Between Upstream and Downstream Intensifies, Rare Earth Metal Losses Worsen] Metal factories have raised their quotations following the increase in oxide prices, but downstream magnetic material enterprises, facing lower order prices, show low acceptance of high-priced metals. This has made high-price transactions in the market difficult, further exacerbating the raw material cost losses for metal factories.

SMM January 9 News:

Rare Earth Ore:

During the week, rare earth ore prices remained generally stable. With separation plants expected to suspend production for maintenance, market demand for rare earth ore gradually cooled. However, considering the limited supply, price fluctuations for rare earth ore were relatively small.

Rare Earth Oxides:

This week, lanthanum oxide prices slightly decreased to 3,600-4,000 yuan/mt, while cerium oxide prices slightly increased to 7,800-8,000 yuan/mt. Overall, rare earth oxide prices saw a slight rise during the week. As some raw ore separation enterprises are expected to suspend production for maintenance, purchase willingness from metal plants increased, leading to a slight rise in market inquiries. Suppliers gradually raised their quotations, and low-price transactions quickly tightened. Yttrium oxide prices remained stable this week at 40,000-43,000 yuan/mt.

Rare Earth Metals:

In the metals sector, metal plants raised their quotations in line with the increase in oxide prices. However, downstream magnetic material enterprises, constrained by low order prices, showed low acceptance of high-priced metals, making high-price transactions difficult. This further exacerbated the losses in raw material costs for metal plants.

Rare Earth Permanent Magnets:

This week, magnetic material enterprises continued to adhere to the principle of restocking as needed, resulting in relatively low procurement volumes and limited market activity. As the Chinese New Year holiday approaches, enterprises have gradually ramped up production to fulfill orders. However, downstream market order volumes did not show significant growth, and no major fluctuations are expected before the holiday. Post-holiday market conditions remain to be observed.

Rare Earth Scrap:

This week, the scrap market remained stable, with sellers generally adopting a wait-and-see approach, opting to hold inventory for post-holiday sales. Scrap separation enterprises restocked based on demand, maintaining a normal procurement pace. There was low willingness to sign orders at high prices, and mainstream quotations in the market were generally in line with current prices.

》Apply for a Free Trial of the SMM Metal Industry Chain Database

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
Shenghe Resources to Transfer 51% Equity in Four Subsidiaries to China Rare Earth Group for RMB 1.6575-1.8105 Billion
1 hour ago
Shenghe Resources to Transfer 51% Equity in Four Subsidiaries to China Rare Earth Group for RMB 1.6575-1.8105 Billion
Read More
Shenghe Resources to Transfer 51% Equity in Four Subsidiaries to China Rare Earth Group for RMB 1.6575-1.8105 Billion
Shenghe Resources to Transfer 51% Equity in Four Subsidiaries to China Rare Earth Group for RMB 1.6575-1.8105 Billion
【SMM Rare Earth Flash】 On October 19, Shenghe Resources announced plans to transfer 51% equity in four subsidiaries — Leshan Shenghe (after divesting non-separation businesses), Quannan Xinziyuan Rare Earth, Jiangyin Jiahua New Materials, and Zibo Jiahua New Materials — to China Rare Earth Group Industrial Development Co., Ltd. The appraised value of the target companies totals RMB 3.25-3.55 billion, corresponding to a transaction consideration of approximately RMB 1.6575-1.8105 billion. Upon completion, the four companies will be deconsolidated, with accounting switched from the cost method to the equity method. The cooperation is limited to rare earth smelting and separation operations.
1 hour ago
China Rare Earth Projects 89%-141% H1 2026 Profit Growth Amid Favorable Policies and Rising Prices
1 hour ago
China Rare Earth Projects 89%-141% H1 2026 Profit Growth Amid Favorable Policies and Rising Prices
Read More
China Rare Earth Projects 89%-141% H1 2026 Profit Growth Amid Favorable Policies and Rising Prices
China Rare Earth Projects 89%-141% H1 2026 Profit Growth Amid Favorable Policies and Rising Prices
【SMM Rare Earth Flash】 China Rare Earth (000831.SZ) issued a positive profit alert on October 16, forecasting H1 2026 net profit attributable to shareholders of RMB 363-463 million for January-September, up 88.96%-140.99% YoY, with non-recurring net profit of RMB 366-466 million, up 98.63%-152.94% YoY. Implied Q3 net profit is approximately RMB 126-226 million, rising notably both YoY and QoQ. The company attributed the growth to favorable rare earth industry policies, improving supply-demand dynamics, and higher product prices year-on-year.
1 hour ago
China Rare Earth Group, Harbin Electric Ink Deal for Strategic Cooperation in Manufacturing
2 hours ago
China Rare Earth Group, Harbin Electric Ink Deal for Strategic Cooperation in Manufacturing
Read More
China Rare Earth Group, Harbin Electric Ink Deal for Strategic Cooperation in Manufacturing
China Rare Earth Group, Harbin Electric Ink Deal for Strategic Cooperation in Manufacturing
【SMM Rare Earth Flash】 On October 15, China Rare Earth Group and Harbin Electric Corporation signed a strategic cooperation framework agreement. Liu Leiyun, Party Secretary and Chairman of China Rare Earth Group, stated that the two sides will use the signing as an opportunity to further consolidate existing cooperation, strengthen strategic synergy, and align industrial resource advantages with major equipment R&D and application needs, jointly contributing to building a manufacturing powerhouse. The partnership will deepen integration of rare earth resources with major equipment manufacturing and support the self-reliance of key materials for high-end equipment.
2 hours ago
Stalemate and Game Between Upstream and Downstream; Worsening Inversion of Rare Earth Metals [SMM Weekly Review] - Shanghai Metals Market (SMM)