Rare earth prices continued to decline

This week, rare earth product prices declined at a rapid pace.

Currently, most industry participants expect that Myanmar ore imports may return to normal by month-end. According to mine owners, the inventory of ion-adsorption ore in Myanmar is currently substantial. If the border blockade in Myanmar is lifted, a large volume of ion-adsorption ore is expected to enter the domestic market in a short period. However, as prices continue to decline, suppliers at the mining end are seeing their profits squeezed. Some separation plants are concerned that mining-end suppliers may choose to hold onto their inventory rather than sell. Although the import volume of ion-adsorption ore is likely to increase significantly, the circulation volume of ion-adsorption ore may actually decrease.

During the week, separation plants continuously lowered their quotes for rare earth oxides. As of December 19, transaction prices for Pr-Nd oxide had dropped to 390,000 yuan/mt. According to SMM, downstream metal plants have been cautious in their procurement due to factors such as weak market demand, expectations of price declines, inventory strategy adjustments, or financial conditions.

As oxide prices continue to decline, metal prices are also falling. Some suppliers are more inclined to sell their inventory at low prices, leading to frequent low-price transactions in the market. However, as rare earth prices approach the psychological expectations of downstream buyers, this may stimulate some buyers' willingness to buy the dip, gradually increasing market procurement volume and stabilizing rare earth prices.