According to Sina Finance, heavy rare earth prices have surged significantly due to China's export controls on Japan. Data from UK-based Argus Media shows that European yttrium prices reached their highest level since 2012 on February 12, then doubled to $850 per kilogram on the 19th. This element is widely used in medical equipment and LED materials. Meanwhile, the European price of dysprosium—used in permanent magnets for electric vehicle motors—hit $1,100 per kilogram on February 19, marking its highest level since 2015.

Data from the U.S. Geological Survey (USGS) and the China Rare Earth Industry Association indicates that by 2025, China will account for over 70% of global heavy rare earth production and more than 90% of separation and processing capacity, establishing strong dominance on the supply side. This is compounded by a mere 5% growth in China's total rare earth mining quota for 2026, shrinking imports from Myanmar, and the absence of large-scale alternative production capacity overseas, highlighting pronounced supply rigidity. On the demand side, dysprosium is used in permanent magnet materials for new energy vehicles and industrial motors, while yttrium is used in medical, LED, and optical devices. Stable downstream demand with no substitute materials is driving prices to new highs.

Notably, widening price differentials between domestic and international markets and short-term emotional buying have pushed prices higher. Policies focus on regulating usage rather than imposing a complete supply cutoff, and the market will gradually return to rationality.

Looking ahead, export controls will remain normalized, with heavy rare earth prices likely to fluctuate at elevated levels. Leading domestic enterprises will gain greater pricing power, while global supply chains accelerate restructuring. Given the lengthy overseas capacity construction cycle, the medium-term tight supply-demand balance is expected to persist.

The rise in heavy rare earth prices benefits the rare earth permanent magnet and minor metals sectors. Upstream rare earth resource companies benefit from higher product prices, with profit expectations revised upward; companies have ample orders, and premium pricing for high-end magnetic materials is increasing. Downstream sectors such as new materials, new energy vehicles, and wind power have strong cost-passing capabilities, so the impact may be relatively limited.

As an integrated internet platform providing benchmark prices, on February 26, the benchmark price of dysprosium metal on SunSirs was RMB 2,190,000.00 per ton, an increase of 10.89% compared with the beginning of the month (RMB 1,975,000.00 per ton).

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