Rare earth prices continue to rise

Rare earth prices continue to rise related enterprises to increase the layout.

On January 21, rare earth plate, rare earth permanent magnet plate continued to rise.The average price of praseodymium and neodymium oxide rose by 2,500 yuan per ton and terbium oxide by 100,000 yuan per ton, compared with the average price on January 20 and 21, according to Shanghai Nonferrous.At the same time, due to the continued rise of rare earth prices, a number of listed companies have benefited a lot, and increase the layout of capacity.

The average price of terbium oxide, one of the mainstream medium and heavy rare earth products, was 8.85 million yuan/ton on January 21, up 100,000 yuan/ton in a single day, up more than 22% this year, according to Shanghai Nonferrous.Dysprosium oxide average price of 2.2 million yuan/ton, a cumulative increase of about 13% in the year;Among the mainstream light rare earth products, the average price of praseodymium and neodymium oxides reached 456,500 yuan/ton, up 2,500 yuan/ton in a single day and up more than 12% this year.

Why does the rare earth market continue to rise?Guosen Securities believes that this round of rare earth rise is driven by downstream demand and the combined effect of supply rigidity.The personage inside course of study expresses, be in seller's market at present, supply and demand relation is tense.At the same time, new energy vehicles and other downstream demand is strong, the demand for dysprosium, terbium increased, but the domestic annual mining and smelting indicators have a quota, forming price expectations.

At the same time, the mainstream suppliers of rare earth prices continue to rise.The latest listing price data of Southern Rare Earth shows that the market price of terbium oxide is 8.1 million yuan/ton ~ 8.2 million yuan/ton, and the market price of dysprosium oxide is 2.15 million yuan/ton ~ 2.17 million yuan/ton.A week ago, the price was 7.2 million yuan/ton ~ 7.3 million yuan/ton and 2.03 million yuan/ton ~ 2.05 million yuan/ton.The listing price of terbium oxide rose as high as 900,000 yuan/ton per week.

Prices for imported rare earths have also continued to rise.In December 2020, China imported 1,567,335 tons of rare earth from Myanmar at an average price of 21,146 US dollars per ton, representing three consecutive months of rising import volume and average price.

In the current supply and demand relationship, the mainstream rare earth products continue to rise in price, combined with market expectations and other factors, the industry chain stocks have continued to rise recently.As of Jan. 21, the rare earth index and the rare earth permanent magnet sector are up about 29 percent and 12 percent for the year, respectively, according to Wind.

 In the long run, affected by the rising price of rare earth since 2020, industry chain companies have benefited a lot.