Rare Earth Market Shows Divergence: Light and Heavy RE Prices Move in Opposite Directions

Published: Jun 7, 2026 22:41

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This week, the rare earth market showed a clear divergence, with light and heavy rare earths moving in opposite directions. On the light rare earth side, trading sentiment for praseodymium-neodymium oxide turned subdued again, and metal plants remained reluctant to purchase. As a result, prices fluctuated within a narrow range. Although upstream separation plants still showed some willingness to support prices, downstream magnetic material companies and metal plants had low acceptance of current price levels, and new orders were limited, leading to a stalemate between buyers and sellers. Feedback from across the supply chain indicates that downstream users still lack the capacity to absorb high-priced oxides, and actual transactions were mostly small, just-in-time purchases with few bulk restocking activities. Consequently, neodymium-praseodymium prices are expected to continue their weak and volatile trend in the near term.

On the heavy rare earth side, the market for dysprosium oxide and terbium oxide was relatively more active, supported by market rumors and purchasing activity from some large smelters, prompting prices to gradually move higher. However, feedback from metal plants suggests that downstream order books for magnetic material companies have not materially improved, and overall demand remains weak. Although upstream suppliers are clearly trying to push prices higher, the lack of strong support from end-user orders means that actual transaction volumes are low, and high-priced deals remain sporadic. Overall, the rare earth market remains largely in a wait-and-see mode. Both the downward pressure on light rare earths and the passive uptick in heavy rare earths reflect the sluggish recovery in demand. In the short term, the market is likely to continue its subdued trajectory.

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