SunSirs: Domestic Rare Earth Prices Fell sharply in October

In October, t domestic rare earth prices fell sharply. Influenced by domestic policies and the reopening of Myanmar gateways, the trend of domestic rare earth market fell sharply. According to the rare earth index from SunSirs, on Oct 30, the rare earth Commodity Index was 342, 1 point higher than that of Oct 29, 65.80% lower than the peak of 1,000 in the cycle (Dec 6, 2011), and 26.20% higher than the lowest point of 271 (Sep 13, 2015). (Cycle: Dec 1, 2011 to date)

Oct 31, Rare-Earth Metal: the average price of Neodymium Metal decreased 9.08% to 370,500RMB/t, the average price of Dysprosium Metal decreased 12.9% to 2,025,000RMB/t, the average price of Praseodymium Metal was 660,000RMB/t, decreasing 5.04%. Rare-Earth Oxide: the average price of Praseodymium-Neodymium Oxide decreased 7.24% to 294,500RMB/t, the average price of Dysprosium Oxide decreased 17.69% to 1,535,000RMB/t, the average price of Praseodymium Oxide decreased 7.19% to 35,500MB/t, the average price of Neodymium Oxide decreased 7.20% to 296,500RMB/t. Rare-Earth Alloy: the average price of Praseodymium-Neodymium Alloy decreased 9.08% to 370,500RMB/t, the average price of Dysprosium Ferroalloy Alloy decreased 17.69% to 1,535,000RMB/t.

In October, the price trend of dysprosium terbium series of heavy rare earth dropped sharply. Myanmar hasopened the gate, the supply pattern of domestic heavy rare earth market has changed, and the domestic supply has increased. In addition, the domestic demand has been limited recently, and the domestic prices have dropped sharply. In the near future, the domestic policy is still fermenting, which brings some good expectations to the domestic heavy rare earth market.

Since October, the prices of light rare earth have changed frequently. In October, the prices of praseodymium and neodymium products dropped sharply, the prices of neodymium oxide and praseodymium and neodymium oxide fell as well. In addition, the downstream demand for light rare earth has not improved significantly. A small amount of replenishment is needed by downstream businesses. The actual transaction prices are still at a low level, and there is a strong wait-and-see mood in the market. In the middle of October, the market prices of light rare earth dropped successively, but at the end of October, the market prices of light rare earth rose, but the increase was very limited. The price fluctuation is related to the national environmental protection supervision. Rare earth’s production has particularity, especially the radiation hazard of some products, which makes environmental protection supervision more stringent. Metal enterprises and downstream magnetic material enterprises are less interested in purchasing due to the surplus of purchasing before the festival, and the prices of rare earth have been lower than that in the earlier stage, so the wait-and-see mood is strong. Under the strict environmental protection inspection, the production of rare earth separation enterprises in many provinces has been stopped, resulting in the general market supply of rare earth oxides, especially some mainstream rare earth oxides, the supply is normal, and the market price trend is declining. Recently, there has been a strong wait-and-see mood among large-scale enterprise groups in the market. The rare earth market is generally traded, and the volume is at a low level.

The National Environmental Protection Department has not reduced its stringent efforts, which has a great impact on the Rare Earth industry, the operating rate has been low, the market has been cold, and there has been regulations of Rare-Earth industry in Jiangxi, a large province of Rare-Earth producing, all of which are good news to the Market. Recently, the Supervisory Group of the State Council has gone to Jiangxi Rare Earth enterprises. This inspection closely centered on the major deployment of the Central Committee of the Communist of China and the State Council, highlighted the key and difficult issues in the field of economic operation and reform and development, and focused on the strong blockades and pain points reflected by the people and the market subjects, so as to promote the implementation of various tasks from point to area. Besides, the NDRC and departments concerned have promoted effective measures urgently，strengthen the consolidation and made the related management mechanisms innovate and improved, in order to accelerate the construction of a development pattern which consists of a rational industrial structure, an advanced scientific and technological level, the effective resources protection and the orderly production and operation and to add the special value of Rare Earth as a strategic resource. The supply of raw ore resources in the upstream of the Rare Earth industry has shrunk, and people in the domestic market are waiting for the good news on policies and State Reserve.

Rare Earth analyst from SunSirs expects that prices of heavy rare earth will maintain at a low level, but the prices of light rare earth may improve. Although the supply may stay at low as well, caused by the strict environmental protection inspection and the regulation of the industry, the downstream demand is still not good and the import of heavy rare earth has increased.

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