The rare earth market from mid-May to late May 2026 showed muted movement. Amid a growing wait-and-see mood across the market, persistent weakness in end-user demand and the decline in raw material prices in China exerted downward pressure. At the same time, prolonged logistics disruptions stemming from the continued Middle East conflict and instability in supply chains continued to support prices.
In its report through May 22, Shanghai Metals Market (SMM) pointed out that “trading activity itself has declined amid weak demand.” It added that “buyers tend to step in on dips when prices are rising, but when a bearish mood takes hold, psychology shifts toward halting transactions,” concluding that “despite supply instability, downward pressure on prices remains strong.”
■ Yttrium Polarization Deepens: European Prices Hit Record High While Chinese Prices Decline
Price Trend of Yttrium Oxide (99.999% EU, $/kg) (China RMB/kg)
In China, raw material prices, including tungsten, peaked in March and have since diverged significantly from international prices. Within the rare earth market, medium rare earth yttrium oxide has become increasingly polarized between domestic and overseas markets.
European and international prices continued to rise amid tight supply conditions, reaching record highs on May 21. By contrast, Chinese prices have turned downward since peaking in mid-March.
SMM analyzed that “the movement among Western countries to reduce dependence on China, including efforts to establish rare earth supply chains, has also become a burden on China’s rare earth raw material prices.”
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https://www.iru-miru.com/article/83224
■ China Index and Neodymium Trend Lower
Price Trend of Metal Neodymium (99% FOB China) ($/kg)
Meanwhile, metal neodymium, supported by medium- to long-term demand expectations such as for electric vehicles (EVs), has moved lower.
On May 21, the price fell to $144.75/kg, down from the previous $152.75/kg, marking the lowest level since February 7.
China’s rare earth price index has also remained sluggish. The daily rare earth price index, announced by the Association of China Rare Earth Industry, stood at 250.4, up slightly from the previous day’s 246.2. However, the index has remained on a downward trend since its recent high above 300 in late February, with no signs yet of a full-fledged rebound.
China Rare Earth Index Trend
(Source: Association of China Rare Earth Industry)
■ Dysprosium Unchanged Since April
Price Trend of Metal Terbium (99% FOB China) ($/kg)
Price Trend of Metal Lanthanum (99% FOB China) ($/kg)
Price Trend of Metal Dysprosium (99.5% FOB China) ($/kg)
Most other rare earths remained unchanged.
Metal terbium and metal lanthanum have shown no price movement since May 1, while metal dysprosium has remained unchanged since early April.
<Topics>
● May 27
South Korean steel conglomerate Posco Group announced on its website on May 27 that its subsidiary Posco International had decided on May 21 to build a rare earth magnet plant in the United States.
Related Article:
South Korea’s Posco to Produce Rare Earth Magnets in the U.S. — JPY 32 Billion Investment in Joint Venture with U.S. Firm Backed by Mitsubishi Materials
● May 20
According to China’s April 2026 monthly trade statistics, released by the General Administration of Customs of China on May 20, the country’s exports of rare earth products increased 35.1% y/y to 11,041 tonnes in April.
Related Article:
China’s April Rare Earth Product Exports Rise 35% — Finally Signals Willingness to Cooperate with U.S.
● May 14–15
The Rare Earth Society of Japan held the 42nd Rare Earth Discussion Conference on May 14–15 at Tower Hall Funabori (Edogawa, Tokyo).
Related Articles:
Industry Insights from Booth Exhibitions and Informal Conversations at the 42nd Rare Earth Discussion Conference
Voices from the 42nd Rare Earth Discussion Conference — The Reality of Bayan Obo, the World’s Largest Rare Earth Deposit
● May 13
Hanwa Co., Ltd. announced on May 13 that it had reached an agreement toward strategic collaboration, including product supply, with KAP Minerals, a Canadian producer of phosphate and rare earth ores.
Related Article:
Hanwa Signs Basic Agreement for Strategic Collaboration with KAP Minerals, Producer of Phosphate and Rare Earth Ores
● May 8
Australia’s government-affiliated agency, the Australian Nuclear Science and Technology Organisation (ANSTO), opened a rare earth ore processing facility on its premises on May 8.
Related Article:
Australian Government Opens Two Critical Mineral Processing Facilities in New South Wales — Clay-Hosted Rare Earth Processing and High-Purity Quartz Production
(IR Universe Kure, translated by S. Aoyama)
