Poor demand weakens prices

SHANGHAI, Jul 22 (SMM) – Poor demand lowered spot prices of certain rare-earth products last week.

SMM assessments showed that prices of praseodymium-neodymium oxide stood at 300,000-305,000 yuan/mt as of Friday July 19, down from 320,000-325,000 yuan/mt a week ago, as anemic demand prompted small producers and traders to reduce their quotes to offload cargoes.

Prices of neodymium oxide declined to 302,000-307,000 yuan/mt. Meanwhile, large producers lowered offers for praseodymium oxide, with SMM assessed prices dropping from 400,000-410,000 yuan/mt to 390,000-400,000 yuan/mt.

As of July 19, prices of erbium oxide eased to 185,000-190,000 yuan/mt, while those of holmium oxide weakened to 385,000-395,000 yuan/mt, after China Southern Rare Earth Group lowered its listed prices earlier in the week.

Demand for light rare earths is unlikely to pick up in the short run, as downstream consumers, magnet producers, stood on the sidelines in a low season. This is likely to keep prices weak.

China Southern Rare Earth Group did not lower its listed prices for dysprosium oxide and terbium oxide last week.

Prices of medium, heavy rare earths are expected to remain weak and stable in the short term, and will likely climb after demand recovers.