SunSir: Poor Demand, the Rare Earth Market Significantly Declined in the First Half of the Year-II

According to the data from SunSirs, the domestic rare earth market experienced a significant decline in light rare earths in the first half of the year, while the heavy rare earth market experienced a relatively small decline.

It can be roughly divided into three stages: from January to April, the rare earth market significantly declined; the market prices rebounded in May; and the market rebounded in June.

From the beginning of the year to the end of April, due to the scarcity of inquiries from downstream metal and magnetic material enterprises, downstream manufacturers mainly consumed existing inventory, and the actual transaction price of rare earth continued to shift downward. The prices of rare earth metals and oxides also fell, and the situation of raw material cost inversion in metal factories was still difficult to alleviate in the short term. Some metal factories had reduced their production load. In addition, downstream user demand was weak, rare earth manufacturers continued to release production capacity, and some traders were bearish on the market. Despite the continuous insufficient consumption capacity of downstream buyers, market confidence remained sluggish, and the wait-and-see sentiment of rare earth practitioners further intensified. Finally, the import of rare earth raw materials increased significantly, while the market trading volume was relatively low. The operating rate of the separation plant hit a new low, and multiple negative factors combined, accelerating the decline in rare earth prices.

In May, the promotion of automobiles had achieved significant results, with an increase in inquiries. Due to the long decline in light rare earth prices in the early stage, the prices quoted by the holders had been relatively firm, resulting in an increase in actual transaction prices. Recently, market inquiries and quotations had been relatively active. As inventory was depleted, trading volume had increased. However, downstream demand had grown slowly, market information was still weak, and the increase in orders from metal factories was not significant. The wait-and-see sentiment in the rare earth market still existed, making it difficult for subsequent demand to follow up in the long term.

In June, the domestic rare earth market returned to a downward trend, and inquiries for praseodymium neodymium products were relatively scarce. Transactions were mainly in demand, with some companies experiencing a decline in price support. In addition, insufficient demand support led to a decline in the domestic rare earth market trend. In June, the price of metal praseodymium and neodymium remained inverted, mainly to ensure the supply of long-term orders. Intermediaries were cautious in replenishing small quantities, resulting in limited transactions. Recently, both rare earth production and market inventory had decreased. The supply of raw materials was tight, and there were few spot goods in the market. Sellers were cautious in their quotations, and the transaction situation was weak. Downstream procurement was mainly based on demand, and the prices of rare earth products were generally fluctuating and decreasing.

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