According to the monitoring of the business agency, the price index of the domestic rare earth market declined this week, and the domestic rare earth industry declined slightly. On August 21, the rare earth index was 678 points, which was the same as yesterday. It was 32.67% lower than the highest point 1007 points (2022-02-24) in the cycle, and 150.18% higher than the lowest point 271 points on September 13, 2015. (Note: the period refers to December 1, 2011 to now).

This week, the price of products in the domestic light rare earth market continued to fall, and the trend of the mainstream praseodymium neodymium system in the rare earth market dropped sharply. In terms of products:

It can be seen from the product price trend chart that the prices of domestic metal neodymium, metal praseodymium, neodymium oxide, praseodymium oxide, praseodymium neodymium alloy and praseodymium neodymium oxide have dropped significantly. As of the 22nd, the price of neodymium oxide in domestic rare earth was 730000 yuan / ton, and the price dropped by 6.41% this week; The price of neodymium metal was 910000 yuan / ton, with a decrease of 6.67%; The price of praseodymium oxide was 735000 yuan / ton, with a price drop of 6.37%; The price of praseodymium neodymium oxide was 655000 yuan / ton, down 12.08% this week; The price of praseodymium neodymium alloy was 805000 yuan / ton, with a decrease of 11.33%; The price of metal praseodymium was 1.025 million yuan / ton, with a price trend of 3.76%. This week, the domestic rare earth market continued to decline.

The price trend of the domestic rare earth market has dropped sharply. Recently, the downstream purchasing is not active, and the number of new orders is relatively small. Affected by the sentiment of buying up and not buying down, the wait-and-see mood of the magnetic material enterprises has deepened, and the purchasing intention is weak. In addition, the demand has further declined due to the impact of power limitation and production stoppage in some regions, and the rare earth market has dropped significantly. Due to the normal supply of mainstream products such as praseodymium and neodymium oxide of some large groups, some small waste recycling enterprises have reduced production due to the shortage of raw material inventory due to the shortage of waste supply. Most of the magnetic material enterprises are distributed in Zhejiang. Affected by the power restriction and epidemic situation in the Yangtze River Delta and the Pearl River Delta, the demand for orders of new energy vehicles and electric two wheeled vehicles in the downstream is reduced, the demand for spot purchase is weak, and the market price continues to fall. There is no obvious improvement in the downstream demand side, the purchase demand is limited, the market negotiation atmosphere is general, and the market price of light rare earth praseodymium and neodymium has dropped sharply. The number of active offers made by the separation enterprises in the field is reduced, and the purchase is cautious. The offers of the traders are active. Some merchants intend to sell goods at a profit. In addition, the purchasing intention of the metal factory is not high. The market trend of light rare earths declines sharply.

The purchase orders of the downstream magnetic material industry have not improved, and rare earths are purchased on demand. At present, the inventory of neodymium and praseodymium oxide has not changed much. Affected by the sentiment of buying up but not buying down, the price trend in the market continues to decline. According to statistics, the demand for new energy vehicles is acceptable. According to the data released by the China Association of automobile industry, in June 2022, China’s automobile production and sales volume reached 2.455 million and 2.42 million respectively, with a year-on-year increase of 31.5% and 29.7%. The automobile production and sales volume increased significantly. Recently, the demand for new energy is still supported. However, the upstream purchasing enthusiasm is not high, the domestic light rare earth market continues to decline, and the domestic heavy rare earth market price drops slightly.

It can be seen from the trend chart that the price of dysprosium oxide in China decreased slightly. As of the 22nd, the price of dysprosium oxide was 2.235 million yuan / ton, with a price drop of 1.54% this week; The price of dysprosium ferroalloy was 2.205 million yuan / ton, with a price trend of 2.86%; The price of dysprosium metal was 3 million yuan / ton, and the price fell by 0.66% this week; This week, the price trend of terbium series dropped. The domestic price of terbium oxide was 13.5 million yuan / ton, and the price of metal terbium was 17.25 million yuan / ton. The price of heavy rare earths has dropped slightly. The leading magnetic material factory purchases according to demand, which makes the domestic market of heavy rare earths fall slightly. The raw material inventory of separation enterprises in light rare earth ore use areas in Sichuan and other places has decreased. The reduction of this part of supply has little impact on the operating rate of separation plants in light rare earth ore use areas. However, recently, with the epidemic being controlled, the production enterprises have started gradually, the supply side has eased, and the rare earth market atmosphere continues to be mild, The downstream magnetic material enterprises just need to follow up as planned, and their mood is more cautious. However, the export of Myanmar is limited, and the global rare earth supply is relatively concentrated. Myanmar is one of the production areas next to China and the United States. Myanmar has a great impact on the domestic heavy rare earth market products, and the price of heavy rare earth in the market has dropped slightly.

In addition, the state policy supports the rare earth market. In 2022, the first batch of Rare Earth total amount control indicators meet expectations, and the industrial pattern continues to be optimized. The Ministry of industry and information technology and the Ministry of natural resources issued the second batch of total control indicators for rare earth mining, smelting and separation in 2022. In 2022, the total control indicators of the second batch of rare earth mining, smelting and separation are 109200 tons and 104800 tons respectively. The total control indicators of rare earth mining, smelting and separation in the first two batches in 2022 are 210000 tons and 202000 tons respectively, with a year-on-year increase. As soon as this news comes out, the confidence of manufacturers in the field declines, and the domestic rare earth market continues to decline.

The sustainable development of new energy vehicles, wind power and variable-frequency air conditioning in the downstream of rare earths, coupled with the recent resumption of production of terminal plants, the orders of upstream magnetic material enterprises have not improved. Even if the government introduces policies such as halving the purchase tax, the consumption of new energy vehicles in the terminal will be boosted in the later period. Chen Ling, a business analyst, predicts that the short-term downstream procurement is not active, and the domestic rare earth market price may continue to fall.