1. Briefing of Important News
This week, prices of PrNd, DyFe, and Tb kept increasing. Price from Asian Metal at this weekend presented: PrNd metal 445-450RMB/KG (price from SMM: 450-460RMB/KG), DyFe alloy 1930-1950RMB/KG (price from SMM: 1980-2020RMB/KG), and Tb metal 4800-4850RMB/KG (price from SMM: 4850-4950RMB/KG).
2. Analysis of Professional Insiders
Rare earth market kept increasing steady and gently this week. Both upstream and down-stream firms held a rational attitude and kept a good connection with each other, which lead to an active market transaction. Policy factor was still the main reason that rare earth products kept increasing, beyond that, the shrinkage of supply also impelled its rising.
National Development and Reform Commission held two consecutive rare earth symposiums, hearing suggestions from rare earth experts and industries and starting to make research concentrating on present issues and future development of the industries, while there was still no clear response from NDRC on supervision of rare earth exportation. Counter-list to America had been validated officially, which leads to additionally 25% tariff on rare earth metal ore from America. All foreign light rare earth supply shocks are weakened. Due to the news, the PrNd products rose again.
Although the trend of light and heavy rare earth has been raised this week, the lack of hidden gains has begun to show up. In the later period, the gains have gradually slowed down, and the industry has once again held the policy of see-and-wait before the festival. The adverse impacts of a trade war in rare earth industries started to show up. Manufacturing ends were influenced by additional tariffs and the market shrunk due to tariff policy. Some magnet enterprises reverted that there was a decreasing in purchasing orders. The market factor has a temporary small impact, although there is some restraint on the uptrend, it is still not enough to offset the boost caused by the restriction of supply. On the aspect of the trade war, America had made preparation to our counter actions, which including encouraging rare earth separation industries of American and third party, investing on the research of rare earth manufacturing technology and so on. However, without the support of China's resource, their rare earth resource was far away from covering the gap in its demand according to its present available resource. As for the development of rare earth-related technologies, for the complexity of separation technology and process, it would take a long time for them to make researches which made it not possible to solve their present problems (Ruidow.com).
Listing price on June 3rd from China South Rare Earth
Unit: 10,000RMB/ton (EXW price incl. VAT)
3. 趋势图（参考亚洲金属网）Tendency Chart (refer to Asian Metal)
June 6, 2019