SunSirs: Favorable Support, China's Rare Earth Market Trend is Rising

The price of domestic praseodymium and neodymium rare earths has risen, and the market price of heavy rare earths has remained high. According to the rare earth sector index of the Business Society, the rare earth index on July 14 was 524 points, which was 3 points higher than yesterday and 1000 points higher than the highest point in the cycle (2011 -12-06) decreased by 47.60% and increased by 93.36% from the lowest point of 271 points on September 13, 2015. (Note: Period refers to 2011-12-01 to present).

Since July, domestic rare earth prices have risen, and the prices of mainstream commodities in the rare earth market have risen to varying degrees recently, and the market trend of rare earths has improved. Specific to the product:

The prices of domestic 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 15th, the price of neodymium oxide in the domestic rare earth is 537,500 yuan/ton; the price of neodymium metal is 660,000 yuan/ton; praseodymium neodymium oxide price is 542,500 yuan/ton; praseodymium neodymium alloy price is 667,500 yuan/ton; metal praseodymium price is 700,000 yuan/ton; praseodymium oxide price is 572,500 yuan/ton, each Products have risen to varying degrees. In July, the domestic light rare earth market gradually rose, and the market improved.

The domestic rare earth market continues to rise, the structural inflection point of supply and demand is coming, the demand for high-end magnetic materials is increasing, and the profit margin of the rare earth industry chain is opening 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. The sales of new energy vehicles are relatively normal, and the 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, downstream demand has increased more than before, and the market price of light rare earths has continued to rise.

As of the 15th, the price of dysprosium oxide was 2.475 million yuan/ton; the price of dysprosium ferroalloy was 2.45 million yuan/ton, the price of dysprosium metal was 3.31 million yuan/ton, the domestic price of terbium series rose correspondingly, and the domestic terbium oxide price was 7 million yuan/ton. , The price of terbium metal is 8.725 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. The Myanmar side has a greater impact on the domestic heavy rare earth market products, and the source of imported goods has been greatly reduced. The supply of the heavy rare earth market on the market is average. Recently, downstream purchases have been active and the market price trend has risen.

The recent "Notice on Carrying out Industrial Energy Conservation Supervision Work in 2021" emphasizes the comprehensive investigation of key industries such as steel, non-ferrous metal smelting, petrochemical chemicals, building materials and other key industries, and launches 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-saving supervision of key industries and enterprises will be fully covered. In addition, Wang Jiangping, vice minister of the Ministry of Industry and Information Technology, said at a video conference on industrial and information system industrial policies and regulations that he will focus on optimizing the development environment of industry enterprises, accelerate the legislation of the Telecommunications Law, and promote the introduction of the "Rare Earth Regulations" as soon as possible. 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 increased.

With the sustainable development of new energy vehicles, wind power, and inverter air conditioners downstream of rare earths, the demand side continues. In addition, the domestic rare earth supply is under normal operation. Recently, on-site transactions have increased and purchases have been active. Chen Ling, an analyst from the business agency, predicts the future market price of rare earths Or will maintain the upward trend.

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