SunSirs: Strong Demand, China's Rare Earth Continues to Rise after the Spring Festival

According to SunSirs monitoring, the price index of the domestic rare earth market continues to rise, the domestic price of praseodymium and neodymium series rare earths continues to rise, the market price of terbium series has risen to a 10-year high, the price of dysprosium series hit a 5-year high, and the domestic rare earth market prices are rising step by step. According to SunSirs Rare Earths The sector index shows that the rare earth index on February 19 was 486 points, a decrease of 51.40% from the cycle highest point of 1000 points (2011-12-06), and an increase of 79.34% from the lowest point of 271 points on September 13, 2015. (Note: The period refers to 2011-12-01 till now).

It can be clearly seen from the Rare Earth Index that domestic rare earth prices continue to rise, and the recent rare earth market is very bullish, and market prices continue to rise. Specific to the product:

Recently, the demand for permanent magnets has continued to increase. New energy vehicles have been on fire from 2020 to 2021, driving the development of many industries. The upstream material rare earth permanent magnets have also taken a ride. The main rare earth materials of high-performance NdFeB are light rare earth praseodymium and neodymium oxide, heavy rare earth dysprosium oxide and terbium oxide, which are used in new energy vehicles, wind power, energy-saving inverter air conditioners, traditional automobiles and other fields. According to data released by the China Automobile Association, China's auto sales in 2020 will reach 25.311 million. Among them, sales of new energy vehicles reached 1.367 million, breaking historical records. Downstream demand is rising. It is said that the demand gap has been increasing, and the domestic light rare earth market prices continue to rise. Recently, the price of terbium in the domestic heavy rare earth market has reached a 10-year high, and the market price of dysprosium has continued to rise.

It can be seen from the trend that the domestic price of dysprosium continues to rise. As of the 19th, the price of dysprosium oxide was 2.405 million yuan/ton; the price of dysprosium ferroalloy was 2.385 million yuan/ton, and the price of dysprosium metal was 3.075 million yuan/ton. The domestic price of terbium oxide was 8.825 million yuan/ton, the price of metal terbium was 11.025 million yuan/ton, and the price of terbium series rose to a new high in 10 years. The reasons for the sharp increase in the price of the domestic heavy rare earth market include several aspects. First, the political situation in Myanmar is turbulent, and the global rare earth supply is relatively concentrated. Myanmar is one of the producing areas second only to China and the United States. The Myanmar side has a greater impact on the domestic heavy rare earth market products, and the import source has been greatly reduced. The contradiction between supply and demand in the domestic heavy rare earth market has led to a sharp increase in the price of heavy rare earths. The second domestic rare earth purchasing and storage plan is a big benefit to support domestic heavy rare earth prices. In the purchasing 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, demand and price of medium and heavy rare earths. Third, the downstream demand has continued to rise in the near future, the application of new energy has grown rapidly, and the demand for permanent magnets has increased significantly. This has brought the most favorable support to the heavy rare earth market. The price of direct products in the heavy rare earth market has continued to rise. Due to the tight supply in the terbium market, the supply and demand are imbalanced. The market price of terbium has maintained a high level.

Domestic policies have even given favorable support to the rare earth industry. On January 15, 2021, the Ministry of Industry and Information Technology publicly solicited opinions on the "Regulations on the Management of Rare Earths (Draft for Comment)", releasing signals for my country to regulate the management of the rare earth industry and promote high-quality industrial development. There are 29 drafts for comments, clarifying the division of responsibilities for rare earth management, the approval system for rare earth mining, smelting and separation investment projects, and the total index management system, etc., and emphasizes strengthening the management of the entire industry chain of rare earths, strengthening supervision and management, and the state's efforts to develop the rare earth industry With corresponding adjustments, the rare earth industry is developing in a high-quality direction, favorable policies support the development of the rare earth industry, and the domestic rare earth market prices have risen sharply.

The recent overseas economic recovery, especially the continuous recovery of the manufacturing industry, is expected to drive further growth in demand. The domestic demand for new energy has increased significantly. In addition, the domestic rare earth supply is still tight. The contradiction between supply and demand in the rare earth market is acute. continue rising.

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