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

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.

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