Upstream and downstream rare earth sectors remain at a stalemate, with prices running relatively stable [SMM Weekly Review of Rare Earths]

June 5 News:

Rare Earth Ores:

Today, the price range of rare earth carbonate is 35,600-35,900 yuan/mt, the price of monazite has been adjusted to 41,800-42,600 yuan/mt, and the price of medium-yttrium, europium-rich ore is approximately 189,000-191,000 yuan/mt. Recently, the supply of rare earth ores has been affected by the rainy season in Southeast Asia, leading to a reduction in imports compared to the previous period. Meanwhile, market news has triggered speculation among some traders, significantly strengthening the reluctance of suppliers in the rare earth raw material sector to sell. Some industry participants believe that the price of medium-yttrium, europium-rich ore may rise to 200,000 yuan/mt.

Rare Earth Oxides:

Currently, the price of lanthanum oxide remains stable at 4,200-4,800 yuan/mt, and the price of cerium oxide has temporarily stabilized at 10,000-11,800 yuan/mt this week. Recently, the price fluctuations of rare earths have been relatively small, and downstream demand has been poor. However, upstream suppliers have maintained firm quotes, with the overall price of light rare earths running relatively stable. The price of Pr-Nd oxide has shown a slight upward trend this week, mainly due to the support of raw material costs, with suppliers reluctant to sell at low prices. The prices of dysprosium oxide and terbium oxide have seen minimal fluctuations this week, with upstream suppliers holding firm and observing the market. Given the persistent poor downstream demand and the stalemate in back-and-forth negotiations between upstream and downstream, the overall price of medium-heavy rare earths has remained relatively stable. The price of yttrium oxide has also continued to stabilize at 48,000-52,000 yuan/mt this week.

Rare Earth Metals:

This week, the price of Pr-Nd alloy has increased slightly, mainly due to the support of raw material costs. However, some metal plants have indicated that their current inventory levels of metal products are relatively high, but they remain optimistic about the future development of the rare earth market and are therefore unwilling to sell at reduced prices. The prices of dysprosium-iron alloy and terbium metal have also remained stable amid the firm prices of their oxides. However, due to export restrictions, the demand for medium-heavy rare earths is low. Additionally, downstream magnetic material enterprises are continuing to develop rare earth permanent magnets with reduced dysprosium and terbium content, resulting in a persistently sluggish trading atmosphere in the dysprosium and terbium markets.

Rare Earth Permanent Magnets:

The prices of NdFeB blanks are as follows: NdFeB blank N38 (Ce) is quoted at 142-152 yuan/kg; NdFeB blank 40M is quoted at 188-198 yuan/kg; NdFeB blank 40H is quoted at 192-202 yuan/kg; NdFeB blank 45SH (Ce) is quoted at 242-262 yuan/kg.

This week, the prices of NdFeB blanks have remained stable. After a slight increase in metal prices last Friday, magnetic material enterprises slightly raised their quotes for blanks, which have since remained stable. Due to restrictions on export trade, magnetic materials originally intended for export have been redirected to the domestic market, leading to intensified competition and severely compressing the profit margins of magnetic material enterprises. Meanwhile, with no improvement seen in end-use demand, magnetic material enterprises found it difficult to accept high-priced metals and adopted a purchasing as needed strategy to replenish their inventory, leading to a stalemate in the back-and-forth negotiations between upstream and downstream.

Rare Earth Scrap:

This week, the price of Pr-Nd recycled from NdFeB scrap closed at 472-477 yuan/kg; the price of dysprosium recycled from NdFeB scrap closed at 1,610-1,621 yuan/kg; and the price of terbium recycled from NdFeB scrap closed at 5,439-5,495 yuan/kg.

This week, scrap market prices remained high and stable. Driven by the increase in oxide market prices last Friday, scrap prices continued to rise and remain high. The activity of market inquiries increased, and actual trading volume also rose significantly, leading to an increase in scrap circulation. However, some magnetic material enterprises were optimistic about future price trends and chose to stockpile inventory and wait. Currently, the upstream and downstream sectors of the rare earth industry are in a stalemate, with scrap prices temporarily stable. However, due to the increase in ore prices, the cost of rare earth raw materials has risen, while the downstream market finds it difficult to accept high-cost prices. It is expected that prices may fluctuate in the short term.

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