Latest Update in the China Rare Earth Metals Market

As a country with rich rare earth reserves and a "monopoly" country in terms of rare earth smelting and separation, when China's rare earth downstream (new materials and other application fields) has not yet achieved strong competitiveness, the priority should be given to mastering the global pricing of rare earth upstream commodities through rare earth supply-side reforms.

During the Chinese New Year holiday, the domestic molybdenum market was relatively stable, and the prices remained flat. As of January 20, the mainstream price of 45% molybdenum concentrate was 4,540-4,560 yuan/mtu, the mainstream price of 50% molybdenum concentrate was 4,560-4,580 yuan/mtu, and the mainstream price of ferromolybdenum was 298,000-305,000 yuan/mt (Cr50%).

Affected by the expectations of improving domestic consumption, both SHFE nickel and LME nickel prices increased before the Chinese New Year holiday. During the CNY holiday, SHFE stopped trading and LME nickel prices fluctuated at a high level within the rage of $28,000-29,800/mt during January 23 to January 27.

The magnetic material enterprises already restocked before the holiday, and thus after the holiday they are expected to focus on the delivery of long-term orders that are placed earlier.

It is expected that rare earth prices may remain stable in the short term.

SMM data showed that China’s copper cathode output stood at 870,000 mt in December 2022, down 3.3% from the previous month and flat from the same period in 2021. The actual output was 17,900 mt lower than the expected 887,900 mt. The output totalled 10.28 million mt in 2022, up 3.07% or 306,200 mt year-on-year.

The prices of rare earths continued to grow last week, but the growth slowed amid gradually halted logistics services as well as contracting demand from downstream magnetic material companies.

Domestic output of didymium oxide in December 2022 stood at 5,134 mt, down 11% from November. Output fell across Fujian, Guangdong, Guangxi, Jiangxi, Jiangsu and Shandong to varying degrees.