SunSirs: China's Rare Earth Market is under Pressure, Prices Fell in September

The domestic rare earth market prices have been declining since September, and as of the 14th, domestic rare earth products have fallen to varying degrees. According to the Rare Earth Sector Index of the Business Society, the Rare Earth Index on September 13 was 373 points, which was the same as yesterday. It was down 62.70% from the cycle high of 1,000 points (2011-12-06) and the lowest point on September 13, 2015. 271 points increased by 37.64%. (Note: Period refers to 2011-12-01 till now).

As of September 14th, the domestic rare earth neodymium praseodymium oxide price was 335,500 yuan/ton, down by 1.32% from the initial price of 340,000 yuan/ton; the price of praseodymium neodymium alloy was 404,500 yuan/ton, which was 433,000 yuan/ton from the beginning of the month. The price of neodymium oxide fell by 1.96%; the price of neodymium oxide was 360,500 yuan/ton, which was 0.55% lower than the price of 362,500 yuan/ton at the beginning of the month; the price of dysprosium oxide was 1.71 million yuan/ton, which was 3.93% lower than the price of 1.78 million yuan/ton at the beginning of the month. The price of ferroalloy was 1.72 million yuan/ton, which was 2.55% lower than the price of 1.765 million yuan/ton at the beginning of the month. The domestic rare earth market products have declined to varying degrees.

In September, the price of domestic light rare earth praseodymium and neodymium series fell, and the purchase of major downstream manufacturers came to an end. The demand has not improved recently. The wait-and-see mood of the merchants on the market has increased. The light rare earth market has deteriorated, and the market price has dropped slightly. On the other hand, the recent domestic supply of praseodymium and neodymium rare earths has been normal, and major light rare earth manufacturers have produced normal production. The downstream felt the shift in market sentiment and slowed down the procurement cycle. Supply and demand were also negative factors for the price drop in the light rare earth market. The supply of light rare earths is normal, the demand side purchases generally, and the prices of light rare earths on the market have fallen.

In September, domestic prices of direct descendants continued to decline. In the domestic rare earth purchasing and storage plan, medium and heavy rare earths accounted for a large proportion of the annual output, but the purchasing and storage has not been carried out as scheduled. In addition, the downstream procurement is not active, and the direct descendant market prices continue to fall. The domestic heavy rare earth import supply has been tightened, and the domestic heavy rare earth market prices are still at a high level. The domestic supply of terbium is relatively tight, and the manufacturer's production is not continuous. The prices of terbium oxide and metal terbium have reached high prices in the past 7 years. Recently, on-site procurement has not been active, and the domestic heavy rare earth prices have dropped slightly.

The Ministry of Industry and Information Technology issued the 'Notice on Doing a Good Job in the Implementation of Policies for Benefiting Enterprises in the Rare Earth Industry', stating that the Rare Earth Office has entrusted the China Nonferrous Metals Industry Association and the China Rare Earth Industry Association to sort out and summarize the policy documents suitable for the declaration of rare earth companies, forming the "Resumption of Work and Production in the Rare Earth Industry" Compilation of Related Support Policies. Favorable policies support the development of the rare earth industry. National policies are conducive to the balance of supply and demand in the rare earth industry. Recently, the rare earth market has been supplying normally, and the domestic rare earth market has declined slightly.

Recently, the purchasing sentiment in the domestic rare earth market has dropped. In addition to the normal supply of the rare earth market in China, SunSirs analysts believe that my country's rare earth industry is expected to gradually change from 'large' to 'strong'. Inactive purchases may lead to a slight decline in domestic rare earth market prices.

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