SunSirs: In July, Rare Earth Market in China Rose Sharply

　　The price index of the domestic rare earth market rose sharply in July, the price of domestic praseodymium and neodymium rare earths rose, the price of heavy rare earths rose, and the domestic rare earth market soared. According to the rare earth sector index of the business community, the BPI of the bulk commodity price index on July 31 was 1092. Points, which was the same as yesterday, setting a new historical high in the cycle, which was a 65.45% increase from the lowest point of 660 points on February 3, 2016. (Note: Period refers to 2011-12-01 to present).

　　In July, domestic rare earth prices rose sharply. Recently, the prices of mainstream commodities in the rare earth market have risen, and the rare earth market has turned red. Specific to the product:

　　The prices of domestic mainstream products such as neodymium oxide, metal neodymium, praseodymium oxide, metal praseodymium, neodymium praseodymium oxide, and neodymium praseodymium alloys have all increased. As of July 30, the price of neodymium oxide in domestic rare earths was 620,000 yuan/ton, compared with early July. The price increased by 30.12%; the price of neodymium metal was 745,000 yuan/ton, an increase of 27.9% from the early July price; the price of neodymium praseodymium oxide was 630,000 yuan/ton, an increase of 31.52% from the early July price; the price of neodymium praseodymium alloy was 770,000 The price of praseodymium oxide was 640,000 yuan/ton, and the price increase in July was 14.29%; the price of metal praseodymium was 815,000 yuan/ton, the increase in July was 17.27%, domestic light rare earth The market trend has risen sharply.

　　The domestic rare earth market has skyrocketed, and some companies have reported that the overall transaction situation has improved, the demand for high-end magnetic materials in the downstream has increased, 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. 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 the data released by the China Association of Automobile Manufacturers, the China Association of Automobile Manufacturers (hereinafter referred to as “China Automobile Association”) announced the latest production and sales data. In June, domestic automobile production and sales reached 1.943 million and 2.015 million respectively. The number of vehicles decreased by 4.8% and 5.3% month-on-month and 16.5% and 12.4% year-on-year. The downstream demand is acceptable in the near future, and the price trend of the light rare earth market has skyrocketed.

　　As of the 31st, the price of dysprosium oxide was 2.675 million yuan/ton, an increase of 13.11% in July; the price of dysprosium ferroalloy was 2.64 million yuan/ton, the increase in July was 12.82%, and the price of dysprosium metal was 3.48 million yuan/ton, the increase in July Is 7.91%; domestic terbium prices have risen sharply, the domestic terbium oxide price is 8.4 million yuan/ton, and the metal terbium price is 10.35 million yuan/ton. The domestic rare earth market transactions have improved, the leading magnetic material factory continues 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. 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 import source has been greatly reduced. The on-site heavy rare earth market supply is average. Recently, downstream purchases have been active, and the market price trend has risen sharply.

　　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 accelerated promulgation of the “Regulations on Rare Earth Management” will enable the industry to have laws to follow on the one hand, and promote the development of the rare earth industry chain on a virtuous cycle; on the other hand, it reflects the importance of my country’s strict control of rare earth supply order and support. The determination to sell rare earths of strategic resources at a“rare”price, the overall demand for rare earth products is acceptable, and the recent increase in downstream demand, frequent replenishment phenomena, the domestic rare earth market prices have risen sharply.

　　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) , 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, we will continue to control the total amount of rare earth mines and tungsten mines. The national policy is favorable, and the trend of some products in the rare earth market is mainly rising.

　　With the sustainable development of new energy vehicles, wind power, and inverter air conditioners downstream of rare earths, demand has been supported. However, domestic rare earth supplies have started normally. After the addition, on-site transactions have improved, and some companies have increased purchases. It’s predicted that the market price of rare earths in the later period will continue to rise in the short-term market price of light rare earths.