SunSirs: Myanmar ’s Export Ban, Some Prices Increase in Chinese Rare Earth Market on March 18

The rare earth index on March 17th was 342 points, which was the same as 16th. It was 65.80% lower than the highest point of the cycle (2011-December-06), and was 26.20% higher than the low of 271 points on September 13, 2015. (Note: Period refers to 2011-December-01 to present).

The average price of neodymium, dysprosium and praseodymium was 377,500 RMB/ton, 2,325,000 RMB/ton and 645,000 RMB/ton respectively. In rare earth oxides, the average price of praseodymium neodymium oxide rose by 2000 RMB/ton to 274,000 RMB/ton; dysprosium oxide rose by 10,000 RMB/ton to 1,895,000 RMB/ton; praseodymium oxide rose by 320,000 RMB/ton; and neodymium oxide rose by 293,500 RMB/ton. The price of praseodymium neodymium alloy in rare earth alloy increased by 2,000 RMB/ton to 344,500 RMB/ton; the average price of dysprosium ferroalloy increased by 10,000 RMB/ton to 1,860,000 RMB/ton.

The price trend of heavy rare earth in the rare earth market is still rising, the domestic heavy rare earth market supply is normal, the supply of heavy rare earth imports is reduced, Myanmar has unilaterally closed customs ports, domestic supply has decreased, and the domestic heavy rare earth price trend has risen slightly. Recently, the demand for permanent magnets has risen slightly. The market trend of dysprosium neodymium series products is mainly stable, and the supply in the market is normal. The recent demand for light rare earth is average, and some market prices have risen slightly. The price fluctuations of the rare earth market are related to environmental protection inspections across the country. The production of rare earths is special, especially the radiation hazards of some products make strict environmental protection supervision. Under strict environmental protection investigations, manufacturers reasonably controlled sales, but the recent downstream demand has not changed much, and most of the rare earth prices have stabilized.

The Ministry of Industry and Information Technology issued a document saying that by 2025, the sales of new energy vehicles and new vehicles will account for about 25%. Global electrification is entering the acceleration period of high-end models on the supply side. China's double-point policy and European carbon emission requirements have established a long-term development mechanism for new energy vehicles. Driven by national policies, the supply and demand pattern of the rare earth industry is expected to further improve, China's domestic demand has improved, and the price of heavy rare earths in the domestic rare earth market has remained high. Recently, the Ministry of Natural Resources, the Ministry of Industry and Information Technology issued the ‘Notice on the Issuance of the Rare Earth Ore Tungsten Mining Total Control Indicators (First Batch) in 2020’, which clarified the first batch of rare earth ores (REO) mining nationwide. The volume control index is 66,000 tons, and the total control index of tungsten concentrate (tungsten trioxide content 65%) is 52,500 tons.

The rare earth analysts of SunSirs predict that the recent domestic strict environmental protection investigation will continue. Myanmar ’s rare earths are banned from exporting. The supply of heavy rare earths is tight.

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