SunSirs: Price of Light Rare Earths Remained High Last Week, while the Prices of Heavy Rare Earths Fell Slightly (11.15-11.22)

The Chinese domestic rare earth market price index remained high. Recently, the domestic market of praseodymium and neodymium series rare earths has been relatively stable, and the price of direct series in the heavy rare earth market has dropped slightly. On November 21, the rare earth index was 749 points, which is 1000 points higher than the highest point in the cycle (2011-12-06 ) Decreased by 25.10% and increased by 176.38% from the lowest point of 271 points on September 13, 2015. (Note: Period refers to 2011-12-01 till now).

Recently, the domestic light rare earth market prices have remained high. Recently, the price trend of mainstream praseodymium and neodymium products in the rare earth market is mainly stable. In terms of products:

The Chinese domestic prices of neodymium oxide, metal neodymium, and metal praseodymium have been stable. The prices of praseodymium oxide have declined slightly, and the prices of neodymium praseodymium oxide and neodymium praseodymium alloy have risen slightly. Overall, the prices have not changed much, and the market trend is stable. As of November 22, the price of neodymium oxide in domestic rare earths was 817,500 yuan/ton, which was flat this week; the price of praseodymium oxide was 835,000 yuan/ton, and the price trend dropped 0.6% this week; the price of neodymium praseodymium oxide was 787,500 yuan /Ton, the price trend increased by 0.32% this week; the price of neodymium praseodymium was 960,000 yuan/ton, the price increased by 0.79% this week; the price of metal praseodymium was 1.08 million yuan/ton, and the price was stable this week; the price of neodymium metal was 990,000 yuan RMB/ton, the price is stable this week, the domestic light rare earth market is relatively stable, and the wait-and-see sentiment is strong in the market, and the light rare earth market price remains at a high level.

The domestic rare earth market is fair, the supply and demand structure has not changed much, and the demand for high-end magnetic materials is normal. The penetration rate of the domestic home appliance inverter air conditioner has continued to increase, and the demand is fair. Coupled with the strong demand for permanent magnets, the rapid development of the new energy industry has driven the development of many industries. The upstream material rare earth permanent magnets have also caught the new energy "express". 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. Sales of new energy vehicles are normal, demand for rare earths is at a high level, and prices of rare earth oxides remain high. Rare earth metal factories mainly wait and see and purchases are more cautious when there are no lock-up orders. At the same time, the national environmental protection inspection is still continuing. The peak season for traditional rare earth demand is approaching. Superimposed on the expectations of the launch of relevant policies in the rare earth industry, supply and demand and policies are expected to resonate. The willingness to purchase goods is low, and the price of rare earths remains high. Finally, the shortage of rare earth supplies continues. The supply of rare earth scrap is also tight and the price is firm, corresponding to the price of praseodymium and neodymium oxide. With the arrival of the purchasing cycle of magnetic materials companies, the price of Pr and Nd series remains at a high level. According to statistics, the demand for new energy vehicles has increased. According to data released by the China Association of Automobile Manufacturers, in the first three quarters of 2021, pure electric vehicles increased by 1.101 million units year-on-year, and plug-in hybrid vehicles increased by 211,000 units year-on-year. The substitution effect is continuing to show up. Recently, the demand in the field of new energy is relatively high, and the domestic light rare earth market prices remain high.

The domestic dysprosium price declined slightly. As of the 22nd, the price of dysprosium oxide was 2.92 million yuan/ton, and the price fell 1.85% this week; the price of dysprosium ferroalloy was 2.89 million yuan/ton, and the price fell 2.36% this week; the price of dysprosium metal was 3.78 million Yuan/ton, the price dropped 1.69% this week; domestic terbium prices have risen and fallen, domestic terbium oxide prices are 10.65 million yuan/ton, and metal terbium prices are 14.4 million yuan/ton. The transactions in the domestic rare earth market are general. Leading magnetic materials plants mainly purchase on-demand. Recently, they are cautious and wait and see. The resistance to high-priced rare earths has increased. The domestic heavy rare earth market prices have declined slightly. The current supply of rare earths in Myanmar is still not smooth, and supply disturbances have further increased. The global supply of rare earths is relatively concentrated, and Myanmar is one of the production 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 domestic supply is tight. The separation companies that use Myanmar mines in the south have an increased risk of reducing production. Affected by this, the domestic heavy rare earth supply is tight, and the domestic heavy rare earth market is in the peak season for heavy rare earths. The price has not fallen much.

In addition, with national policy support, in early July, Vice Minister of Industry and Information Technology Wang Jiangping pointed out that the “Regulations on the Management of Rare Earths” will be promoted as soon as possible. Industry insiders believe that this reflects that the government is strengthening the control of the rare earth industry, which is conducive to the healthy development of the industry. Since 2021, the accelerated promulgation of the "Regulations on Rare Earth Management" will enable the industry to have laws to follow on the one hand, and promote the development of the rare earth industry chain on a virtuous cycle; on the other hand, it reflects the importance of my country’s strict control of rare earth supply order and support. The determination of strategic resources to sell rare earths at a "rare" price, the overall demand for rare earth products is acceptable, and the domestic rare earth market prices remain high.

With the sustainable development of new energy vehicles, wind power, and inverter air conditioners downstream of rare earths, the demand side continues. In addition, the domestic rare earth supply is still tight, and the inventory continues to decline. The recent market transactions are acceptable, but the recent downstream procurement is not active. The wait-and-see mood is strong.

It is expected that the rare earth market price trend in the later period may remain high, and there is also room for a slight increase.

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