SHANGHAI, May 4 (SMM) – Before the Labour Day holiday, the rare earth prices fell rather rapidly. The weak downstream demand prompted buyers of PrNd products to push for lower prices. As a result, PrNd oxide prices shrank by 8.6% last week, and PrNd alloy prices dipped by 5.2%.
At the same time, the inquiries in the dysprosium oxide market became thin again due to negative news factor. Last week, dysprosium oxide prices retreated by 1.8%.
According to SMM research, before the Labour Day holiday, rare earth prices already faced downward pressure, and on the first day back from the holiday, the rare earth market was still dismal. Nevertheless, supported by production costs, the cargo holder held their offers firm, so the rare earth prices held steady.
The transactions today were scarce, since buyers were unwilling to accept high prices.
Some industry insiders said that the Chinese government is about to further strengthen the supervision and management of the rare earth industry to facilitate environmental protection. In the meantime, the imports of rare earths from Southeast Asia may fall due to the rainy reason. Under these circumstances, the domestic oversupply of rare earths may ease. SMM thus presumes that rare earth prices will move within a narrow range.
