SunSirs: Chinese Rare earth Market Prices Fell Slightly (March.23-27)

Some prices of the domestic rare earth market fell slightly this week. Recently, downstream demand has decreased, and some rare earth market prices have fallen slightly. According to the Business Society Rare Earth Sector Index, the Rare Earth Index on March 26 was 339 points, a decrease of 3 points from yesterday, and a 66.10% decrease from the highest point of the cycle (2011-December-06), which was 13 September 2015. The daily low of 271 points rose by 25.09%. (Note: Period refers to 2011-December-01 to present).

As of March 27, the average price of Neodymium in rare earth metals in China was 3,725,000 RMB/ton, with a decline of 0.8% this week and a year-on-year decline of 0.67%; the average price of dysprosium was 2,325,000 RMB/ton, with a stable price trend of 30.25% this week; the average price of praseodymium was 640,000 RMB/ton, with a decline of 0.78% and a year-on-year decline of 7.25%. In rare earth oxides, the average price of praseodymium neodymium oxide is 270,000 RMB/ton, down 0.74%, down 6.09% year on year; the price of dysprosium oxide is 1,830,000 RMB/ton, down 2.92%, up 24.49% year on year; the average price of praseodymium oxide is 310,000 RMB/ton, down 3.12%, down 18.42% year on year; the average price of neodymium oxide is 289,500 RMB/ton, down 0.69%, down 1.03% year on year. The price of praseodymium neodymium alloy in rare earth alloy is 340,000 RMB/ton, down 1.02%, down 8.72% year on year; the average price of dysprosium ferroalloy is 1,815,000 RMB/ton, down 1.89% this week, up 23.47% year on year.

The prices of heavy rare earths in the rare earth market dropped this week. The domestic supply of heavy rare earths increased. The supply of heavy rare earths was tight. Myanmar unilaterally closed customs clearance ports. However, domestic manufacturers continued to resume work and domestic supplies increased. . Recently, the demand for permanent magnets has been normal, and the market trend of praseodymium and neodymium series products has been slightly lower. The supply in the market is normal. The recent demand for light rare earth is average, and some market prices have fallen 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, new energy vehicles and new car sales 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. National policies are conducive to the balance of supply and demand in the rare earth industry. Recently, the supply of heavy rare earth markets has increased, and market prices have fallen slightly.

SunSirs rare earth analysts expect that domestic environmental protection investigations will continue in the near future, but the domestic rare earth market demand has decreased recently, and the supply and demand pattern has changed. It is expected that the prices of heavy rare earths in the rare earth market may continue to fall, and the prices of light rare earth markets may fall.

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