Light rare earth prices stabilize, heavy rare prices fall on low demand

Chinese export prices for light rare earth products were unchanged for the fourth consecutive week on Thursday July 11, with suppliers firmly rejecting further price cuts, but low demand continued to pull down prices for heavy rare earth products used in magnets

“Producers are reluctant to sell at low prices for [neodymium-praseodymium] NdPr oxide and metal, opting to maintain current prices and adopt a wait-and-see approach,” a trader said.

“Also, Northern Rare Earth Group’s third-quarter rare earth concentrate prices showed only a slight decrease compared with the second quarter, with little change overall,” he added.

Major producer Northern Rare Earth also kept its guide prices for July unchanged from the previous month.

Light rare earth product NdPr is the main rare earth component of neodymium iron boron (NdFeB) magnets. A finished magnet contains around one-third NdPr.

Fastmarkets’ weekly price assessment for neodymium-praseodymium oxide 99% ratio (75:25), fob China, stayed at $50-52 per kg on July 11, while the corresponding assessment for neodymium-praseodymium metal (Nd 75% Pr 25%), fob China, remained at $62-64 per kg on the same day, both unchanged since June 13.

The stability in the Chinese NdPr markets extended to the light rare earth products in Europe mainly used in non-magnetic applications.

Fastmarkets’ weekly price assessment for neodymium oxide 99.5%, cif Rotterdam, was unchanged on July 11 at $53-55 per kg, and the assessment was also flat at $53-55 per kg for praseodymium oxide 99.5%, cif Rotterdam, on the same day.

Chinese heavy rare earth magnetics prices fall

The effect of falling heavy rare earth prices was made clear by earnings guidance released on July 9 by the world’s largest heavy rare earth producer, China Rare Earth Group.

It expected to report a first-half loss of 231-251 million yuan ($32-34 million) compared with profit of nearly 172 million yuan in the first half of 2023. The producer cited unfavorable market conditions as the main reason behind the loss.

Fastmarkets’ weekly price assessment for dysprosium oxide 99.5%, fob China, fell to $245-295 per kg on July 11, from $250-300 per kg on July 4.

Dysprosium and terbium are added in trace amounts to NdFeB magnets to improve performance at high temperatures in the drivetrains of electric and hybrid vehicles and in other applications.

Fastmarkets’ price assessment for dysprosium metal, min 99%, fob China, dropped to $310-340 per kg on July 11, from $320-345 per kg a week earlier, and the price of ferro-dysprosium 80%, fob China, fell to $240-255 per kg, down by $5 per kg from $245-260 per kg on July 4.

Fastmarkets’ weekly price assessment for terbium oxide 99.99%, fob China, fell to $730-795 per kg on July 11, from $740-805 per kg on July 4, while the price for terbium metal, min 99.9%, fob China, dropped to $910-970 per kg on Thursday, from $940-1,000 per kg a week earlier.

“Downstream inquiries and purchasing enthusiasm are low for dysprosium and terbium, with buyers tending to buy when prices are rising rather than falling. I have no deals and need to monitor the market,” a producer said.

Meanwhile, Chinese export prices for high-purity gadolinium oxide, which is used in non-magnetic applications including aerospace, healthcare and nuclear power, have remained flat for six consecutive weeks.

Fastmarkets’ weekly price assessment for gadolinium oxide 99.99%-99.999%, fob China, stayed at $28-31 per kg on July 11.

Stay informed, make confident decisions and navigate the dynamic rare earths market with Fastmarkets. 

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