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SunSirs: Trends of Chinese Light and Heavy Rare Earth Market are Different

May 25 2020 09:59:27     SunSirs (Linda)

Recently, the price of dysprosium terbium in the Chinese rare earth market has continued to rise, and the downstream inquiries have increased recently. However, the overall enquiry transaction in the light rare earth market has declined, resulting in the light rare earth market prices falling. According to the rare earth sector index of the business community, the rare earth index on May 22 was 333 points, an increase of 2 points from May 21, a decrease of 66.70% from the highest point in the cycle of 1,000 points (2011-December-06), an increase of 22.88% from the lowest point in the cycle of 271 points on September 13, 2015. (Note: The period refers to 2011-December-01 to present).

On May 22, the price of dysprosium oxide in domestic rare earth increased by 50,000 yuan / ton to 1.94 million yuan / ton; the price of dysprosium ferroalloy increased by 50,000 yuan / ton to 1.9 million yuan / ton, and the price of metal dysprosium rose by 50,000 yuan / ton to 2.425 million yuan / ton, the price of terbium oxide and metal terbium increased by 50,000 yuan / ton, and the price of heavy rare earth market has been rising recently.

The rare earth purchase and storage plan is a good support for the heavy rare earth market. In the domestic rare earth purchase and storage plan, medium and heavy rare earths account for a large proportion of annual output, which is expected to have a greater impact on the supply and demand and prices of medium and heavy rare earths. It still has a tightening effect on the domestic supply of medium-heavy rare earth imports. Once the purchasing and storage plan is implemented as scheduled, it will have a greater impact on the tight supply and demand of heavy rare earth dysprosium and terbium and the price increase. In addition, the recent on-site inquiries have increased, the prices of heavy rare earths have risen, the contradiction between supply and demand has become slightly sharper, and the prices of the domestic heavy rare earth market have continued to rise.

In mid-to-early May, inquiries for the light rare earth market increased, prices increased, and downstream manufacturers 'buying and not buying attitudes increased their stock preparation enthusiasm, downstream manufacturers' inventories increased, and recent inquiries decreased. The high shows signs of retreat, but due to its relatively close proximity to the low point, it is expected that the possibility of a sharp decline in the near future is limited, and the price of praseodymium neodymium has fallen slightly in the near future.

Policy: The Ministry of Letters issued the “Notice on Doing a Good Job in Implementing the Policy of Benefiting Enterprises in the Rare Earth Industry. Compilation of Support Policies Related to Industry Resumption and Production Resumption. The policy is favorable to support the development of the rare earth industry. At the same time, Sino-US relations are somewhat loosened. The key products of rare earth trade between China and the United States are of great significance. National policies are conducive to the balance of supply and demand in the rare earth industry. The recent supply of rare earth market is normal, but due to the different market demand for light and heavy rare earths, light and heavy rare earths show very different trends.

Recently, the domestic heavy rare earth market is well supported, and once rare earth storage is implemented, it will bring greater benefits to the heavy rare earth market, but the light rare earth market has poor demand, but the price is near the cost line, and there is little room for decline. The division expects that the price of the heavy rare earth market will still increase in the later period, but the light rare earth market price may maintain a low and volatile trend.

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