According to the monitoring of the Business News Agency, the rare earth market price index continued to decline in February, and the domestic rare earth market trend declined. The rare earth index was 625 points on February 27, down 8 points from yesterday, down 37.93% from the highest point in the cycle (2022-02-24), and up 130.63% from the lowest point 271 on September 13, 2015. (Note: the period refers to 2011-12-01 to now).

The prices of neodymium oxide, metal neodymium, praseodymium oxide, metal praseodymium praseodymium neodymium oxide and metal praseodymium neodymium all declined in China. As of the end of the month, the price of metal praseodymium neodymium was 820000 yuan/ton, down 8.89% in February; The price of praseodymium and neodymium oxide was 682500 yuan/ton, and the monthly price fell by 8.70%; The price of neodymium oxide was 705000 yuan/ton, and the monthly price fell by 11.88%; The price of neodymium metal was 895000 yuan/ton, and the price trend fell by 9.14% in February; The price of praseodymium metal was 890000 yuan/ton, and the monthly price decreased by 4.81%; The price of praseodymium oxide was 672500 yuan/ton, down 5.94% in February.

The domestic light rare earth market demand is difficult to improve. The downstream magnetic material enterprises still focus on digesting the inventory. The order situation is poor, and the purchase is very light. The metal demand situation in the rare earth market has not improved. Some metal factories have almost no transactions. In addition, the transaction situation of the rare earth oxide inquiry is not optimistic, and the prices of the holders continue to decline. In the near future, the downstream procurement is very cold, coupled with the gradual resumption of production enterprises, the supply of light rare earth market is increasing, and the negative factors are superimposed, and the domestic light rare earth market price is mainly declining.

The price of domestic heavy rare earth dysprosium series fell back, and the price of dysprosium oxide was 2.16 million yuan/ton by the end of the month, with a decline of 12.20% in February; The price of dysprosium ferroalloy was 2.16 million yuan/ton, down 11.84% in February; The price of dysprosium metal was 2.965 million yuan/ton, and the monthly price fell 7.63%; The price of domestic terbium is mainly declining. The price of domestic terbium oxide is 12.45 million yuan/ton, and the price of metal terbium is 16.05 million yuan/ton. The price of heavy rare earths has continued to decline, the production enterprises in Sichuan and other places have started to rise, and the downstream procurement is scarce. The oversupply has made the market price decline difficult to change. However, Myanmar’s exports are limited, and the global supply of rare earth is relatively concentrated. Myanmar is one of the production areas next only to China and the United States. Myanmar has a great impact on the products in the domestic heavy rare earth market, and the price decline in the heavy rare earth market has been restrained to some extent.

According to the data released by the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in China reached 425000 and 408000 respectively in January 2023, down 46.6% and 49.9% on a month-on-month basis, down 6.9% and 6.3% on a year-on-year basis, and the market share reached 24.7%. The production and sales of new energy vehicles have declined, the demand for new energy has declined, and the price trend of domestic rare earth market has declined.

The recent purchase list of rare earth downstream businesses shows poor demand. In addition to the increase in upstream supply, the contradiction between supply and demand is acute, and the transaction situation is rare. In the short term, the price of rare earth market is mainly declining. In the long term, the new energy vehicles, wind power, and variable frequency air conditioning in the downstream of rare earth are sustainable development. The demand in the new energy field is still guaranteed, and the development of rare earth industry is optimistic.