According to the Commodity Market Analysis System of the Business Society, the domestic rare earth market price index has slightly declined, while the domestic light rare earth market has declined. On June 26, the rare earth index was 473 points, a decrease of 2 points from yesterday, a decrease of 53.03% from the highest point in the cycle of 1007 points (2022-02-24), and an increase of 74.54% from the lowest point of 271 points on September 13, 2015. (Note: The cycle refers to the period from December 1st, 2011 to the present)

The prices of neodymium oxide, metallic neodymium, praseodymium oxide, metallic praseodymium, praseodymium neodymium oxide, and praseodymium neodymium alloy in China have slightly declined. As of the 27th, the price of metallic praseodymium neodymium was 592500 yuan/ton, with a price drop of 2.07% this week; The price of praseodymium neodymium oxide is 480000 yuan/ton, with a weekly price decrease of 3.03%; The price of neodymium oxide is 500000 yuan/ton, with a weekly price decrease of 0.99%; The price of neodymium metal was 620000 yuan/ton, with a weekly price decrease of 3.12%; The price of metal praseodymium is 645000 yuan/ton, with a weekly price decrease of 1.53%; The price of praseodymium oxide is 497500 yuan/ton, with a weekly price decrease of 3.40%.

Recently, the domestic light rare earth market has slightly declined, and inquiries for praseodymium neodymium products in the market have been relatively quiet. Transactions are mainly in demand, with some enterprises experiencing a decline in price support. In addition, the lack of demand support after June has caused the light rare earth market to fluctuate and decline. At present, the price of metal praseodymium neodymium is still upside down, mainly to ensure the supply of long-term orders. Intermediaries are cautious in replenishing small quantities, and transactions are limited. Recently, both rare earth production and market inventory have decreased. The supply of raw materials is tight, and there are few spot goods in the market. Sellers’ quotations are cautious, and the transaction situation is average. Downstream procurement is mainly based on demand, and the overall price trend of rare earth products has slightly declined.

After years of governance, the domestic rare earth industry has gradually formed a supply pattern with large groups as the main body and relatively concentrated raw materials. With the continuous development of the foreign rare earth industry, China’s share of rare earth production has decreased from 90% to 70%. According to statistics, the production and sales of new energy vehicles completed 713000 and 717000 units respectively in May, with year-on-year growth of 53% and 60.2%, and a market share of 30.1%. From January to May, the production and sales of new energy vehicles completed 3.05 million and 2.94 million units respectively, with year-on-year growth of 45.1% and 46.8%, and a market share of 27.7%. Recently, the country has accelerated the construction of charging infrastructure to better support the entry of new energy vehicles into rural areas, which is conducive to unleashing the consumption potential of rural areas, increasing the sales of new energy vehicles, and increasing the production and sales of new energy vehicles, which is beneficial for the domestic rare earth market.

Future Market Forecast: In the near future, the supply of rare earth production enterprises is normal, but some enterprises are eager to ship, and the actual transaction prices have decreased. It is expected that the rare earth market prices will mainly decline slightly in the short term. In the medium to long term, there is a lack of primary and renewable supply sources, and dysprosium and terbium oxides will also face shortages. In addition, driven by emerging and traditional demands such as energy-saving motors, industrial robots, wind power, variable frequency air conditioning, and consumer electronics, The global demand for rare earth permanent magnets is expected to continue to grow.