ferrite magnets
The price of domestic heavy rare earth market has risen sharply
Mar 2,2021.

The main factor for the sharp increase in domestic heavy rare earth market prices is the sharp contradiction between supply and demand.

On the supply side: The situation in Myanmar is not optimistic. The global supply of rare earths is relatively concentrated. Myanmar is one of the production areas second only to China and the United States. Myanmar has a greater impact on the domestic heavy rare earth market products, and the source of imported goods has been greatly reduced. The contradiction between supply and demand in the domestic heavy rare earth market has led to a sharp increase in the price of heavy rare earths. In addition, the domestic heavy rare earth production is normal, and the large domestic demand for heavy rare earths can be described as powerless. The domestic rare earth purchasing and storage plan is a big positive for supporting domestic heavy rare earth prices.

On the demand side: downstream demand continues to expand, and the demand for permanent magnets has continued to increase recently. New energy vehicles have been on fire from 2020 to 2021. According to insiders, the rare earth gap may continue throughout 2021. The main rare earth materials of high-performance NdFeB are light rare earth praseodymium and neodymium oxide, heavy rare earth dysprosium oxide and terbium oxide, which are used in new energy vehicles, wind power, energy-saving inverter air conditioners, traditional automobiles and other fields. According to statistics, new energy vehicles continue to set a single-month historical record of sales. According to data released by the China Association of Automobile Manufacturers, in January, the production and sales of new energy vehicles were 194,000 and 179,000 respectively, a year-on-year increase of 285.8% and 238.5% respectively. Downstream demand is rising. It is said that the demand gap has been increasing. Due to the tight supply in the terbium market and the imbalance between supply and demand, the market price of terbium has reached a high level.

rare earth magnets China supplier

The domestic rare earth index began to rise in November 2020, and the rare earth index of the business community has increased by about 200 points in the past four months. The price increase in the domestic light rare earth market is also quite astonishing. Domestic new energy vehicle sales have increased, and terminal industries such as wind power and electronic products have developed rapidly. As the epidemic slows down, downstream manufacturers’ capacity utilization rate continues, and demand is mainly for on-demand procurement. The demand for neodymium iron boron is still high. New energy vehicles and The boom in the consumer electronics industry has also boosted the price of rare earths. Data shows that the current global demand for high-performance NdFeB is mainly concentrated in the automotive sector (traditional cars are close to 40%, and new energy vehicles account for more than 12%). The rest are wind power, consumer electronics, inverter air conditioners, and energy-saving appliances. Both are in the range of 8%-10%. The downstream demand is rising, and the domestic rare earth market prices continue to rise.

In 2021, the first batch of rare earth mining, smelting and separation total control indicators will increase significantly, which is related to the strong downstream demand. The Ministry of Natural Resources has issued the 2021 total rare earth mining total control indicators, and the first batch of rare earth mines (rare earth oxide REO) in 2021 , The same below) The total mining control index is 84,000 tons, including 11490 tons of ionic (mainly heavy rare earth) rare earth minerals and 72510 tons of rock-mining (light) rare earth minerals. The first batch of tungsten concentrates (65% tungsten trioxide content, the same below) has a total mining control index of 63,000 tons, of which 46,890 tons are the main mining index and 16,110 tons are the comprehensive utilization index. In 2021, we will continue to control the total amount of rare earth mines and tungsten mines. The national government policies are favorable and the market prices of rare earths continue to rise.

As the downstream areas of new energy vehicles, wind power, and inverter air conditioners continue to increase in volume, the demand for rare earths will continue to increase, which is expected to drive further growth in demand. The global rare earth supply gap is expected to continue to expand. Domestic rare earth demand remains high, and domestic rare earth supply remains high. Significantly tight, the contradiction between supply and demand in the rare earth market is sharp, and it is expected that the rare earth market prices may continue to rise in the later period.

Article source: Business Club

Request a free quote
If you are interested in our products and want to know more details,please leave a message here,we will reply you as soon as we can.
Leave a message
welcome to BearHeart
If you are interested in our products and want to know more details,please leave a message here,we will reply you as soon as we can.