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

Published: Jan 9, 2025 14:38

Save

[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

2 hours ago

Trump Orders Defense Dept to Stop Waivers for Critical Minerals from Non-Allied Nations by 2027

[SMM Rare Earth Express] US President Trump signed an executive order, requiring the Department of Defense to stop issuing most waivers by January 1, 2027, no longer allowing defense contractors to procure critical minerals and rare earth magnets such as samarium cobalt magnets, NdFeB magnets, tantalum, tungsten and molybdenum from "non-allied countries" including China, Russia, Iran and North Korea. Under the new rules, after 2027, only contractors who have submitted supply chain rectification plans approved by the Department of Defense, documented material sources, and a clear timetable for phasing out non-compliant materials may apply for waivers. Additionally, Trump required the Department of Defense to formulate a supply chain traceability policy within 180 days, pushing contractors to establish a full-chain traceability system from raw materials to end-use products, and to strengthen the certification of domestic critical minerals and materials, so as to enhance the security of the national defense supply chain.

2 hours ago

Cyclic Materials and ERI Partner to Recycle Rare Earth Minerals from US E-Waste

[SMM Rare Earth News] Canadian rare earth recycling company Cyclic Materials has reached a cooperation agreement with US electronic waste recycler ERI. Leveraging ERI’s nationwide recycling network and eight processing centers, the partnership will recover rare earth magnets and other critical minerals from electronic waste, building a circular supply chain for critical minerals in North America. Under the agreement, ERI is responsible for the collection and pre-processing of electronic waste, while Cyclic will recover high-purity rare earth oxides from NdFeB magnets and simultaneously extract key materials such as copper and aluminum at its plant in Arizona. The plant has an annual processing capacity of 25,000 mt. The two parties also plan to jointly bid on commercial and government recycling projects, expanding the layout of critical mineral circular utilization. Previously, Cyclic had signed a 10-year cooperation agreement with German magnetic material company VAC to recycle NdFeB scrap generated at its US plant, further strengthening the rare earth supply chain in North America.

2 hours ago

17 hours ago

Malaysia Reviews $96M Lynas-US Defense Deal Amid Palestine Stance Concerns

Malaysia is reviewing a supply agreement worth $96 million signed between Lynas Rare Earths and the US Department of Defense, after a parliamentary committee assessed whether the deal affects Malaysia’s stance in support of Palestine and its future rare earth policies. According to a previously issued statement, the Parliamentary Special Select Committee on International Relations and International Trade, chaired by Member of Parliament Wong Chen, convened on July 16 to discuss the role of the Australian company Lynas in the US defense supply chain. The committee heard submissions from government officials, non-governmental organizations, and senior executives of Lynas. The committee recommended that the government formulate a clearer foreign investment policy to protect Malaysia’s national interests and sovereignty, and clarify its position on this matter within two weeks. The committee said it called this meeting to examine and assess the impact of the supply agreement, which is allegedly affecting Malaysia’s long-standing stance in support of Palestine.

17 hours ago