Rare earth prices pulled back significantly, with sluggish actual trading in the market [SMM Rare Earth Weekly Review]

August 7 News:

Rare Earth Ores:

Today, the price range of rare earth carbonate is 42,200-42,500 yuan/mt, monazite prices have adjusted to 49,000-50,000 yuan/mt, and the price of medium-yttrium, europium-rich ore is approximately 206,000-208,000 yuan/mt. Recently, rare earth ore prices have declined slightly overall, with separation plants showing low purchase willingness. The wait-and-see sentiment in the market has intensified, and suppliers have continued to lower their selling prices.

Rare Earth Oxides:

Currently, the price of lanthanum oxide remains stable at 4,200-5,000 yuan/mt, and cerium oxide prices have stabilized at 10,500-11,000 yuan/mt this week, with lanthanum-cerium prices remaining stable. This week, Pr-Nd oxide prices have begun to pull back. It is understood that due to factors in the news, some traders' bullish sentiment for the future market has been frustrated. Recently, the volume of active Pr-Nd oxide offerings in the market has increased significantly. Guided by the "rush to buy amid continuous price rise and hold back amid price downturn" sentiment, downstream buyers have been more cautious in inquiring about goods, leading to a decrease in market trading activity. Pr-Nd oxide prices have fallen to 522,000-525,000 yuan/mt. In terms of medium-heavy rare earths, the prices of medium-heavy rare earth oxides have continued to decline this week. Although some major manufacturers have conducted raw material procurement recently, the procurement prices have not been high. It is expected that the prices of medium-heavy rare earth oxides will continue to be in the doldrums. The price of yttrium oxide has temporarily stabilized within the 48,000-50,000 yuan/mt range this week, with no significant fluctuations.

Rare Earth Metals:

This week, Pr-Nd alloy closed at 638,000-645,000 yuan/mt, showing a weakening trend compared to the prices at the beginning of the week, mainly due to the increase in active shipments by traders, who have lowered their quotes to cash out, leading to a continuous decline in Pr-Nd alloy prices. However, the quotes of metal enterprises remain firm due to the cost support from the oxide market. With the decline in the oxide market, the problem of inverted pricing for metal enterprises has improved. Due to the low number of new orders signed by downstream magnetic material enterprises, the demand for metal procurement is weak, resulting in a sluggish actual market transaction and a strong wait-and-see sentiment. In terms of medium-heavy rare earths, terbium metal closed at 8.7-8.75 million yuan/mt, and dysprosium-iron alloy closed at 1.56-1.58 million yuan/mt. Due to weak downstream procurement demand, market transactions are difficult. Additionally, major magnetic material manufacturers have tendered for medium-heavy rare earths such as dysprosium and terbium at lower prices, weakening market transaction expectations. Suppliers have lowered their quotes and actively shipped goods, leading to a continuous weakening of medium-heavy rare earth prices this week.

Rare Earth Permanent Magnets

NdFeB Blank Prices: NdFeB blank N38 (Ce) closed at 174-184 yuan/kg; NdFeB blank 40M closed at 220-230 yuan/kg; NdFeB blank 40H closed at 224-234 yuan/kg; NdFeB blank 45SH (Ce) closed at 274-294 yuan/kg.

This week, domestic magnetic material prices remained stable overall, with the core driver still being the high-cost transmission from upstream rare earth raw materials. The average spot price of Pr-Nd oxide pulled back slightly from the July peak but still increased by over 25% YoY and remained significantly higher than the low point at the beginning of the year, providing rigid cost support for magnetic materials. Market trading activity remained flat, but structural differentiation became prominent: on the one hand, downstream customers, due to sufficient inventory at the beginning of the month and high prices, had weak overall procurement enthusiasm, with orders showing a characteristic of "many inquiries but few purchases". Small and medium-sized magnetic material factories maintained just-in-time procurement for only 60% of their needs. On the other hand, top-tier enterprises maintained high operating rates supported by the resilience of overseas orders, thus sustaining bulk procurement demand. End-use demand also showed uneven performance: orders for NEVs continued to improve and were expected to grow continuously; consumer electronics, white home appliances, and wind power sectors remained stable; the elevator sector continued to decline due to the impact of the real estate market.

Rare Earth Scrap:

This week, the price of Pr-Nd recycled from NdFeB scrap was reported at 566-572 yuan/kg; the price of dysprosium recycled from NdFeB scrap was reported at 1,643-1,654 yuan/kg; the price of terbium recycled from NdFeB scrap was reported at 5,439-5,550 yuan/kg.

This week, the scrap market prices were generally in the doldrums, mainly due to the continuous weakening of oxide market prices. Affected by news-related factors, the oxide market prices continued to decline this week, with weak market trading sentiment, leading to a decrease in the reluctance to sell scrap in the market. Suppliers' willingness to sell scrap increased, procurement by recycling enterprises recovered, and the circulation of scrap in the market improved. However, due to the sluggish overall trading atmosphere in the oxide market, recycling enterprises were cautious in purchasing scrap.