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SunSirs: Catch a Ride on New Energy, the Chinese Rare Earth Market is 'Bullish'

February 07 2021 08:45:10     SunSirs (Linda)

According to SunSirs monitoring, the price index of the domestic rare earth market continues to rise, the domestic price of praseodymium and neodymium rare earths continues to rise, the market price of terbium has risen to a 10-year high, the price of dysprosium hit a 5-year high, and the domestic rare earth market prices are rising step by step. The rare earth sector index showed that the rare earth index on February 4 was 478 points, which was an increase of 1 point from yesterday, and a decrease of 52.20% from the highest point in the cycle of 1000 points (2011-12-06), and the lowest point on September 13, 2015 271 points increased by 76.38%. (Note: Period refers to 2011-12-01 to present).

Domestic rare earth prices continue to rise, and recent rare earth market changes have been frequent, and market prices have continued to rise. In terms of specific products, the domestic prices of neodymium praseodymium oxide, neodymium praseodymium alloy, neodymium oxide, metal neodymium, praseodymium oxide and metal praseodymium have all increased. As of February 5, the domestic rare earth neodymium praseodymium oxide price was 464,500 yuan /Ton; the price of neodymium praseodymium alloy is 575,500 yuan/ton; the price of neodymium oxide is 572,500 yuan/ton; the price of neodymium metal is 710,000 yuan/ton; the price of praseodymium oxide is 412,500 yuan/ton; the price of metal praseodymium is 630,000 yuan RMB/ton, the domestic light rare earth market prices continued to rise.

The demand for permanent magnets has recently increased significantly. New energy vehicles have been on fire from 2020 to 2021, which has driven 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. The downstream demand is rising, 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 price of dysprosium has continued to rise.

Domestic dysprosium prices continued to rise. As of the 5th day, the price of dysprosium oxide was 2.345 million yuan/ton; the price of dysprosium ferroalloy was 2.325 million yuan/ton, and the price of dysprosium metal was 2.975 million yuan/ton. The domestic price of terbium rose sharply, and domestic terbium oxide The price is 8.825 million yuan/ton, the metal terbium price is 11.025 million yuan/ton, and the price of terbium series has risen to a new high level 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 supply of rare earths is relatively concentrated. Myanmar is one of the producing regions 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 is even higher.

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 recovery of advanced manufacturing, is expected to drive further demand growth. Domestic demand for new energy has increased sharply. In addition, the domestic rare earth supply is still tight. The contradiction between supply and demand in the rare earth market is acute will continue to rise.

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