SMM is Optimistic over Praseodymium-Neodymium Prices in the Second Half of June

SHANGHAI, Jun 10 (SMM) - In May, prices of praseodymium and neodymium products showed a steady upward trend as a whole. From the beginning of May to the end of the month, prices of both praseodymium-neodymium oxide and praseodymium-neodymium metal rose by nearly 100,000 yuan/mt, an increase of about 10%. At the end of May, the mainstream prices of praseodymium-neodymium oxide were 950,000 yuan/mt, and those of praseodymium-neodymium metal were 1.15 million yuan/mt. The price of praseodymium and neodymium products rose slightly on the first trading day after the Dragon Boat Festival. Mainstream transaction price of praseodymium-neodymium oxide climbed to 965,000 yuan/mt, and that of praseodymium-neodymium metal rose to 1.16-1.17 million yuan/mt. However, price of praseodymium-neodymium oxide dropped slightly to 960,000 yuan/mt afterwards due to weak demand, while the price of praseodymium-neodymium metal still traded above 1.16 million yuan/mt.

Supply side: The domestic supply of ion-type rare earth ore is still tight. The China-Myanmar border re-opened at the end of April, but it still takes time for output in Myanmar to recover. In May, some ion-type rare earth ore mines experienced a slight reduction in production. Affected by the weak downstream demand, the operating rates of some magnetic material companies declined.  Although Shanghai lifted its COVID lockdown at the beginning of June, the downstream demand has not recovered significantly. Some small and medium-sized magnetic material companies reported limited orders. Overall, end demand in June is expected to recover significantly from May.

Given high costs, tight supply and demand recovery, the market prices of praseodymium and neodymium products may be stable in mid-June, and rise steadily in the second half of June. The prices of praseodymium-neodymium oxide are expected between 0.9-1 million yuan/mt, and those of praseodymium-neodymium metal between 1.1-1.2 million yuan/mt in the second half of June.