The rare earth market has become polarized, with a significant increase in Pr-Nd prices [SMM Rare Earth Weekly Review]

On August 14th:

Rare Earth Ores:

Today, the price range of rare earth carbonate is 43,400-43,700 yuan/mt, the price of monazite has been adjusted to 49,500-51,500 yuan/mt, and the price of medium-yttrium, europium-rich ore is approximately 209,000-211,000 yuan/mt. Recently, the overall prices of rare earth ores have seen a slight increase, mainly due to the upward transmission of downstream oxide prices. However, there has been no significant improvement in the actual trading volume in the market, and separation plants remain cautious in raw material procurement.

Rare Earth Oxides:

Currently, the price of lanthanum oxide has been slightly adjusted to 4,300-4,900 yuan/mt, and the price of cerium oxide has remained stable at 10,500-11,000 yuan/mt this week. The prices of lanthanum and cerium oxides have remained relatively stable this week. The price of Pr-Nd oxide has seen a significant increase overall this week. From the perspective of market sentiment, upstream suppliers still have high confidence in the future market of Pr-Nd, and their willingness to sell at low prices is not strong. Meanwhile, the supply of Pr-Nd products remains tight, and the purchase willingness of downstream buyers has increased. As a result, the price of Pr-Nd oxide has risen to 537,000-540,000 yuan/mt this week. In terms of medium-heavy rare earths, the prices of medium-heavy rare earth oxides have continued to show a weak trend this week. With continuously poor downstream demand, suppliers lack confidence, and some traders have actively sold at low prices, resulting in a sluggish trading atmosphere in the market. 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 remained stable within the range of 46,000-48,000 yuan/mt this week, with no significant fluctuations.

Rare Earth Metals:

This week, the price of Pr-Nd alloy has closed at 657,000-663,000 yuan/mt, continuing to rise from the beginning of the week. This is mainly due to the active trading in the metal market, which has quickly tightened the supply of low-priced Pr-Nd alloy, leading suppliers to raise their quotes. Meanwhile, due to the cost support of Pr-Nd oxide, metal enterprises are reluctant to sell at a loss, resulting in a strong reluctance to budge on prices. In addition, large magnetic material manufacturers have frequently tendered for Pr-Nd alloy recently, providing demand support for Pr-Nd alloy and driving up market sentiment, further pushing up the price of Pr-Nd alloy. In terms of medium-heavy rare earths, the price of terbium metal has closed at 8.63-8.65 million yuan/mt, and the price of dysprosium-iron alloy has closed at 1.55-1.57 million yuan/mt. Due to weak downstream procurement demand and sluggish market inquiries, suppliers have lowered their quotes and actively sold, but the actual trading volume in the market has not improved. As a result, the prices of medium-heavy rare earth metals have been weak overall this week.

Rare Earth Permanent Magnets

The prices of NdFeB blanks are as follows: NdFeB blank N38 (Ce) is priced at 175-185 yuan/kg; NdFeB blank 40M is priced at 221-231 yuan/kg; NdFeB blank 40H is priced at 225-235 yuan/kg; NdFeB blank 45SH (Ce) is priced at 275-295 yuan/kg.

This week, domestic magnetic material prices remained stable overall, with core support still coming from the rigid cost transmission of upstream rare earth raw materials. Prices of core raw materials such as Pr-Nd oxide and metal continued to rise, but due to price negotiations at various stages of the industry chain, the current cost increase has not yet been effectively transmitted to the magnetic material-end-user segment, resulting in magnetic material enterprises maintaining their original quotes to downstream customers. Given the differentiated characteristics of magnetic material products and end-use applications, downstream markets have weak willingness to pay a premium for raw materials. End-users generally adopt a purchasing as needed strategy, further squeezing the profit margins of magnetic material enterprises. Some magnetic material producers have been forced to strategically narrow down their customer base due to cost pressures, ultimately leading to lower-than-expected trading activity in the overall market.

Rare Earth Scrap:

This week, the price of Pr-Nd recycled from NdFeB scrap was reported at 583-588 yuan/kg; the price of dysprosium recycled from NdFeB scrap was reported at 1,643-1,654 yuan/kg; and the price of terbium recycled from NdFeB scrap was reported at 5,439-5,550 yuan/kg.

This week, driven by the continuous rise in the oxide market, the scrap market experienced a significant price increase compared to the beginning of the week, reaching a high price point for the year. As the oxide market continues to rise, the bullish sentiment of scrap suppliers has been boosted, and a reluctance to sell has spread throughout the scrap market, leading to difficulties in procurement for recycling enterprises. To ensure scrap supply, recycling enterprises have had to raise their quotes to attract sellers. Additionally, magnetic material enterprises have increased the orders of recycling enterprises through commissioned processing, which has played a positive role in improving the profit situation of recycling enterprises.