Rare Earth Prices Show Overall Strength in August, and Short-term Prices to Remain Firm

At the beginning of August, driven by the listing prices of China Northern Rare Earth, market confidence was significantly boosted. By late August, the Ministry of Industry and Information Technology (MIIT) and the Ministry of Natural Resources released the second batch of rare earth mining quotas. The annual mining quota for 2024 is up about 6% YoY, a slower growth rate compared to previous years. However, this news stimulated downstream enterprises' purchasing intentions, making holders' quotations more firm. Notably, Pr-Nd prices surged significantly. Taking Pr-Nd oxide as an example, as of August 29, its price had increased by 7.5% compared to August 1.
With the approach of the traditional peak season of September, most industry insiders hold a relatively optimistic view of the future trend of rare earth prices. On the supply side, the import volume of rare earth ores has significantly decreased, pushing up the prices of rare earth raw materials. On the demand side, the release speed of end-user orders remains slow, and the market's acceptance of high-priced products is low, which has also led to a weakened demand for high-priced rare earth raw materials from magnet manufacturers. Considering these factors, rare earth prices are expected to remain strong in the short term, but the room for further increases is limited.