The rare earth market from late August to early September 2024 has rebounded. The Chinese index has recovered since bottoming out in late July, with a focus on light rare earths following suit. However, concerns remain over weak demand for end products, and the upward momentum for medium and heavy rare earths, as well as those used for hard alloys, appears to be limited.

 

■China's major players raise prices, price indexes also rise

The Association of China Rare Earths Industry, a rare earths industry group in China, announced on September 3 that its Rare Earths Index averaged 163.3 in August, up from 156.2 in July. The highest was 168.4 on August 30 and the lowest was 159.2 on August 8. The market rebounded from a bottom of 153 in late July and continues to rise. On September 5, it was raised to 176.0.

 

China Rare Earths Index

(source: Association of China Rare Earths Industry)

 

Meanwhile, the September index price announced by China's state-owned rare earth major China Northern Rare Earth Group High-Tech Co., Ltd. on its website on September 2 showed an increase in the price of some minerals, including an increase in the price of neodymium metal to RMB510,000/ton, up from RMB488,000/ton in August. The benchmark price of Northern Rare Earths serves as the trading standard for other Chinese rare earth companies.

 

September Index Prices for Northern Rare Earths

(Source: Northern Rare Earths website)

 

Shanghai Metals Market (SMM) analyzed the current situation of China's rare earth industry in its report on September 3, stating that 'a reduction in imports of rare earth ores is supporting prices due to decreased supply, but demand for finished products remains weak.

 

■ Neodymium recovers to the $70 range. Terbium reaches a two-month high.

Movements following Chinese prices are spreading. On August 29, the price of neodymium metal recovered to $70.55/kg, surpassing the psychological threshold of $70, marking its highest level in about six months since February. It has rebounded from the low $60 range in early July.

 

Price Trend of Neodymium Metal (99% FOB China) ($/Kg)

 

The price of terbium metal is also following suit. On August 22, it recovered to a mean-price of $935/kg, reaching its highest level in about two months since late June.

 

Price Trend of Terbium Metal (99% FOB China) ($/Kg)

 

■ Dysprosium faces resistance at higher prices, while lanthanum remains flat.

On the other hand, dysprosium metal, a representative of heavy rare earth elements, is showing noticeable resistance at higher prices. On August 29, the mean-price fell to $315/kg, returning to levels last seen at the end of July.

 

Lanthanum metal, which has significant demand for cemented carbide, has remained flat since dropping to $3.35/kg on August 8. It is already at its lowest level in over 18 years, since the summer of 2005.

 

Price Trend of Dysprosium Metal (99.5% FOB China) ($/Kg)

 

Price Trend of Lanthanum Metal (99% FOB China) ($/Kg)

　

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On August 31

 

 

China Rare Earth Group, a state-owned enterprise in China’s rare earth industry, announced on its website that its top executives visited Vietnam and received positive feedback regarding investments in the country. The visit included a meeting with Vietnam’s state-owned Vietnam Coal and Mineral Industries Group (Vinacomin).

 

Press Release (Chinese): https://www.regcc.cn/zgxtjt/jtnew/202409/31264be25ea14351b187b4540cb73831.shtml

 

August 30

 

The financial results for the first half of 2024, announced by Northern Rare Earth (Group) High-Tech, a major Chinese rare earth company listed on the Shanghai Stock Exchange, showed a 21.2% decrease in revenue and a 95.7% decrease in net profit compared to the same period last year, indicating a decline in both revenue and profitability. Similarly, the financial results for the first half of 2024 for China Rare Earth Holdings, listed in Hong Kong, also showed a 22% decrease in revenue and a final loss of 60.32 million Hong Kong dollars. The performance of major Chinese rare earth companies has been poor.

 

Press Release (China Rare Earth Holdings): https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0830/2024083001871_c.pdf

Related articles:. https://www.iru-miru.com/article_detail.php?id=69632

 

August 28

 

Australia's major rare earth company Lynas Rare Earths, which collaborates with the Japanese government, announced on its website that its financial results for the full year ending June 2024 showed a 37.3% decrease in revenue to AUD 463 million and a 72.9% decrease in net profit to AUD 84 million. The decline in revenue and profitability was attributed to the low prices of rare earths during the period.

 

Press Release: https://wcsecure.weblink.com.au/pdf/LYC/02844267.pdf

Related articles; https://www.iru-miru.com/article_detail.php?id=69555

 

August 26

 

Australian rare earth company Arafura Rare Earths Limited announced that it has signed a memorandum of understanding with the Saskatchewan Research Council (SRC), a major Canadian research and technology institution, regarding rare earth elements (REE).

 

Related Articles: https://www.iru-miru.com/article_detail.php?id=69628

 

August 24

 

The NS Association, a group of magnet industry peers, held its meeting for the first time in five years at Nippori (Art Hotel Nippori Langwood).

 

Related Articles: https://www.iru-miru.com/article_detail.php?id=69522

 

August 21

 

The Australian Financial Review (AFR) reported that 'the head of Australian mineral sands major Iluka Resources expressed pessimism about the completion of their planned rare earth refinery.

 

Related Articles: https://www.iru-miru.com/article_detail.php?id=69589

 

August 20

 

China's Ministry of Industry and Information Technology announced on its website on August 20 that the production second quota for rare earths in 2024 will be set at 135,000 tons. While this quota remains unchanged from the first quota announced in February 2024, it represents a 12.5% increase from the second quota of 120,000 tons in 2023.

 

Related Articles: https://www.iru-miru.com/article_detail.php?id=69411

 

 

(IR Universe Kure, translated by S. Aoyama)

 

 

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