Rare earth goods tight price rise by what support

The status quo of the domestic rare earth market

In recent weeks, the domestic rare earth market as a whole is hot, and the market prices of all kinds of products are on the rise. In particular, the prices of some rare earth products have increased significantly, and the prices of praseodymium oxide and neodymium have increased significantly.From rare earth market price trends, mid to late June, praseodymium neodymium market price callback, dysprosium, terbium market bottoming picks up, then, since mid-july, light and heavy rare earth market prices rallied, supply of goods on the market relatively nervous, lack of ore is metal factory and separation factory external conditions, the early stage of the metal factory stock is not enough, or oversold condition, at this stage,The shortage of metals became more apparent.

Feedback from all sides of the market, the market, praseodymium, especially oxide inventory is low, market demand still exists, in the near future, whether to catch up with high transaction or wait and see, terminal production continues, replenishment demand is just a matter of time.In addition, with the arrival of high temperatures in summer, the control of industrial electricity consumption in various places is relatively strict, which may affect the production of rare earth enterprises, and the supply shortage of some rare earth products is unlikely to ease in the short term.

What is the support for the increase in the price of this rare earth commodity?

The answer is broadly twofold: on the one hand, it is due to the rapid growth of the domestic economy in the first half of 2021.China's economy grew 12.7 percent year on year in the first half of this year, ranking first among the world's major economies, according to the National Bureau of Statistics.The Chinese economy, having weathered the major test of the epidemic, is improving quarter by quarter and moving forward steadily, showing strong resilience and vitality.This has played an important role in promoting the stable development of the rare earth industry.

On the other hand, the rational return of rare earth value, the role of rare earth industry in the domestic economic structure gradually emerged.At the same time, it is also a concrete embodiment of the supply and demand relationship in the rare earth market.With favorable national policies, increasing confidence in the rare earth market and strong demand from downstream industries, rare earth prices rebounded.

The development prospects of rare earths

Rare earth as a national strategic resources, after many years of renovation industry by quantitative qualitative change happened, the industry in order to return to, not only can the leading enterprises in the domestic rare earth upstream through the effective growth of rare earth quotas to expand market share, at the same time, some enterprises by improving produced ore ratio or purchase low-cost domestic ore, achieve scale growth benefits and costs down,Finally, with the long-term stability of the rare earth price center, the performance of many enterprises increased substantially.

In fact, the country has listed rare earth materials in the strategic mineral catalogue, which is an important measure to enhance the strategic value of rare earth.With the advent of the intelligent era, the popularization of new energy vehicles, 5G smartphones, intelligent robots and smart home appliances will further increase the growth rate of the demand for rare earths in the future.

Take the Ndfeb industry for example.Since 2000, the global NdFEB industry has witnessed rapid development and continuous technological breakthroughs. In view of China's advantages of abundant rare earth raw materials and low manufacturing cost, the international production capacity has gradually shifted to China.Meanwhile, China's advantages in rare earth resources and industrial policies have made China the world's largest producer and exporter of Ndfeb permanent magnet materials.

With the development of new energy vehicles, the demand for magnetic materials of new energy vehicles' motors has also become the main growth point of high-end NdFEB magnetic material demand, that is, the demand for praseodymium oxide has increased rapidly.Therefore, the new energy vehicle field of high-performance Ndfeb market space is broad.Industry insiders expect that in the next five years, new energy vehicles will enter the stage of accelerated penetration, and the demand for Ndfeb will reach more than 56,000 tons, and the domestic demand will reach about 24,000 tons.

In the first half of this year, China's economy continued to recover steadily and the supply and demand cycle was unimpeded, laying a good foundation for the operation of the rare earth industry in the second half of this year.With the implementation of policies such as the Regulations on rare Earth management in the second half of the year or the gradual introduction of new policies, it is expected to guarantee the medium and long-term high-quality development of the rare earth industry, thus promoting the sustained rise of rare earth prices.