SunSirs: Demand for High-End Magnetic Materials is Increasing, China's Rare Earth Market is Rising

According to the rising trend of the rare earth market price index, the price of domestic praseodymium-based rare earths has risen, and the price of heavy rare earths has rebounded. The domestic rare earth market has turned in. According to the rare earth sector index of the business community, the rare earth index on July 1 was 494 points, compared with yesterday. An increase of 6 points, a decrease of 50.60% from the highest point in the cycle of 1000 points (2011-12-06), and an increase of 82.29% from the lowest point of 271 points on September 13, 2015. (Note: Period refers to 2011-12-01 to present).

In early July, domestic rare earth prices recovered. Recently, mainstream commodity prices in the rare earth market have increased to varying degrees, and the rare earth market has stopped falling and rebounded.

Specific to the products:

The prices of mainstream products such as neodymium oxide, neodymium metal, neodymium praseodymium oxide, neodymium praseodymium alloy, praseodymium oxide and praseodymium metal have gradually increased. As of July 2nd, the price of neodymium oxide in the domestic rare earth is 480,000 yuan/ton; the price of neodymium metal is 595,000 yuan/ton; praseodymium neodymium oxide price is 487,500 yuan/ton; praseodymium neodymium alloy price is 602,500 yuan/ton; metal praseodymium price is 700,000 yuan/ton; praseodymium oxide price is 570,000 yuan/ton, each The products have risen to varying degrees. Most of them have risen for 2 consecutive working days. The inflection point of the domestic light rare earth market trend has been revealed, and the market price has gradually increased.

The domestic rare earth market has stopped falling and rebounded. The structural inflection point of supply and demand is approaching, the demand for high-end magnetic materials is increasing, and the profit margin of the rare earth industry chain has opened up. In the near future, China's rare earth quotas on the supply side may be steadily increased. With the optimization of supply rigidity, and the implementation of new energy efficiency standards, the penetration rate of NdFeB for domestic home appliances inverter air conditioners continues to increase, and the demand side is expected to continue to rise. Sales of new energy vehicles are relatively normal, and demand for rare earths is at a high level. The main rare earth materials of high-performance NdFeB are light rare earth praseodymium and neodymium oxide, heavy rare earth dysprosium oxide and terbium oxide, which are used in new energy vehicles, wind power, energy-saving inverter air conditioners, traditional automobiles and other fields. According to statistics, the sales of new energy vehicles are still good. According to data released by the China Association of Automobile Manufacturers, in May 2021, the sales volume of the automobile industry is estimated to be 2.204 million, a decrease of 2.1% from the previous month and a year-on-year increase of 0.5%; from January to May, the automobile industry Cumulative sales are estimated to be 10.951 million vehicles, a year-on-year increase of 37.6%. Recently, the downstream demand has increased more than before, and the market price of light rare earth has turned into an upward channel.

The price trend of dysprosium is picking up. As of 2 days, the price of dysprosium oxide is 2.385 million yuan/ton; the price of dysprosium ferroalloy is 2.38 million yuan/ton, the price of dysprosium metal is 3.265 million yuan/ton, domestic terbium prices are correspondingly higher, and domestic terbium oxide prices The price is 6.525 million yuan/ton, and the price of terbium metal is 8.3 million yuan/ton. The domestic rare earth market transactions have improved, leading magnetic materials factories continue to expand, and the demand for replenishment has made the domestic heavy rare earth market prices pick up. In addition, Myanmar is banned from exports, and the global rare earth supply is relatively concentrated. Myanmar is one of the production areas second only to China and the United States. Myanmar has a greater impact on the domestic heavy rare earth market products. Imports have been greatly reduced. On-site heavy rare earth market supplies are average. Recently, downstream purchases have been active, and the market price trend has stopped falling and picking up.

The recent "Notice on the Implementation of Industrial Energy Conservation Supervision in 2021" emphasizes the comprehensive investigation of key industries such as iron and steel, non-ferrous metal smelting, petrochemical chemicals, building materials and other key industries, and special monitoring of the implementation of mandatory unit product energy consumption quota standards, which is finally realized During the "14th Five-Year Plan" period, energy conservation supervision of key industries and enterprises will be fully covered. Industry insiders believe that this reflects that the government is strengthening the control of the rare earth industry, which is conducive to the healthy development of the industry. Since 2021, the overall demand for rare earth products has been acceptable. Recently, downstream demand has increased, replenishment has occurred frequently, and domestic rare earth market prices have risen.

In 2021, the first batch of rare earth mining, smelting and separation total control indicators will increase significantly, which is related to the strong downstream demand. The Ministry of Natural Resources has issued the 2021 total rare earth mining total control indicators, and the first batch of rare earth mines (rare earth oxide REO) in 2021 , The same below) The total mining control index is 84,000 tons, including 11490 tons of ionic (mainly heavy rare earth) rare earth minerals and 72510 tons of rock-mining (light) rare earth minerals. The first batch of tungsten concentrates (65% tungsten trioxide content, the same below) has a total mining control index of 63,000 tons, of which 46,890 tons are the main mining index and 16,110 tons are the comprehensive utilization index. In 2021, the total amount of rare earth mines and tungsten mines will continue to be controlled. National policies are favorable and domestic rare earth prices will rise.

With the sustainable development of new energy vehicles, wind power, and inverter air conditioners downstream of rare earths, the demand continues. In addition, the domestic rare earth supply is under normal operation. Recently, on-site transactions have increased and purchases have been active. It is expected that the rare earth market prices may maintain an upward trend in the future.

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