China's Praseodymium-Neodymium Prices Rise Amid Tight Supply and Strong Demand

China’s Praseodymium-Neodymium market has seen significant price increases over the past two weeks, fueled by a combination of tight spot oxide availability and robust demand from the magnet industry. Market analysts expect this trend to persist through the end of the month, with intensified restocking activities by metal and magnet producers further supporting prices.

Oxide separation plants and trading houses have raised their offers due to firm production costs for ore feedstock and consistent purchases from metal producers, who have also seen rising transaction prices. The uptrend in oxide prices, coupled with narrow profit margins for mining firms outside China, has contributed to higher prices in the ore feedstock market. Many ore suppliers have either withdrawn their sales or increased their offers recently, reflecting the prevailing market conditions.

Trading firms, eager to capitalize on the price gains after months of market fluctuations, have been more active in restocking. Large-scale magnet manufacturing plants have continued their regular purchases of praseodymium-neodymium metal, gradually accepting higher prices in line with the rising cost of oxide feedstock. Even medium and small magnet producers, despite their smaller purchase volumes, have made purchases at the higher prices, reinforcing the overall price uptrend in the metal feedstock market.

Expectations of increased magnet demand following the summer lull have further strengthened market predictions of continued price rises. As a result, many oxide and metal producers are holding firm on prices, anticipating higher offers in the near future.

The release of Northern Rare Earth’s (NRE) listed prices for September delivery of praseodymium-neodymium next week is also anticipated to reflect these recent price gains. The slowdown in the growth of light rare earth production quotas and reduced ore feedstock imports from the U.S. and Southeast Asia are additional factors contributing to the tightening of spot supplies, which may lead to further price increases in the coming months.

However, some market participants remain cautious, focusing on the fundamentals of physical demand and the operating rates of downstream magnet producers before making further predictions about price movements.