This week, the rare earth market outside China showed a divergent pattern of “cerium up, the rest down.” Driven by price increases in China and rising ocean freight rates, cerium oxide FOB and CIF prices rose by $55/mt and $60/mt, respectively, while FOB offers for mainstream magnetic material raw materials such as praseodymium, neodymium, dysprosium, and terbium were generally lowered by $3-19.5/kg due to lower prices in China and tight supply caused by export controls. Although limited trading volumes supported premiums in markets outside China, expectations of an industrial slowdown in Europe triggered by the Middle East situation may suppress subsequent demand. On industry developments, Lynas’ Malaysia plant started samarium oxide production ahead of schedule, consolidating its position as the only commercial heavy rare earth separator outside China and advancing its 2030 strategy. In Australia, Terrain discovered high-grade magnetic rare earth ore intervals during drilling at its Western Australia project, highlighting significant resource potential.

Intermediate Product Nickel Market Trading Was Sluggish, Awaiting Guidance From Papua New Guinea Tender Results

The PBOC's Open Market Operations Achieved a Net Withdrawal of 38.5 Billion Yuan [SMM Steel Market Morning News]: The PBOC conducted 190.5 billion yuan of 7-day reverse repo operations yesterday, with a winning bid rate of 1.50%, unchanged from the previous rate. As 229 billion yuan of 7-day reverse repo operations matured yesterday, a net withdrawal of 38.5 billion yuan was achieved on the day. This week, over 1.5 trillion yuan of reverse repo operations and MLF are set to mature in the PBOC's open market. From Monday to Friday, reverse repo maturities in China's open market are 229 billion, 33 billion, 558 billion, 125.8 billion, and 98.5 billion yuan, respectively, with an additional 500 billion yuan of MLF maturing on Tuesday.

Lynas released on January 22 its operating performance for the second quarter of fiscal year 2024 as of December 31, 2023: the total production of rare earth oxides (REO) in the second quarter of this fiscal year was 1,566 tons, down from 3,609 tons in the first quarter. Sales revenue also fell to A$112.5 million from A$128.1 million in the first quarter.

The Malaysian government has announced a three-year extension of the operating license for Lynas, an Australian rare earth company, in Malaysia until March 2026.

Vale reported proforma adjusted EBITDA from continued operations of US$ 3.7 billion in Q1, down US$ 2.7 billion y/y, mainly reflecting lower realized prices of iron ore fines and pellets, lower sales of iron ore fines and higher costs, according to its quarterly earnings report.