Briefing of Important News
Rare earth market last week showed prices fall for PrNd, DyFe and Tb Price from Asian Metal at the weekend presented: PrNd metal 375-380RMB/KG, DyFe alloy 1,600-1,620RMB/KG and Tb metal 4,700-4,750RMB/KG.
Analysis of Professional Insiders
The overall trend of rare earth last week is not optimistic and all series of products have different degrees of significant decline, but late stage PrNd, Dy and Tb mainstream products weakness is slowing, the follow-up is expected to still have downward space but there is difference for the extent and direction.
The main reason for the decline in addition to the demand in the cold period, the increase in supply in the industry is expected to aggravate the fear of cargo owners leading to false shipment. With respect to light rare earth, the deadline for issuing the instruction plan is approaching, and the separation capacity limited by the index is at risk of relaxation. In terms of heavy rare earth, Tengchong customs is still continuing to clear the customs, whether the subsequent closure is temporarily uncertain, fear of high mentality prompted bulk goods to sell ahead of time, the price quickly approached the purchase cost.
The final weakness of PrNd products gradually slowed down and the resistance effect of cost pressure began to appear. For Dy and Tb, although there is a bulk cargo business with fear of high price and getting false start, Dy and Tb inventories relatively concentrated in several groups of south and bulk cost is higher, the price is close to market bulk purchase cost, the space of price concession again from traders and bulk business is small, and the industry to the steady state of mind is strong, and also new production inventory are more concentrated in the group, the price of Dy and Tb has strong control ability.
There was no bright spot in demand for Q4, but foreign order preparation will be gradually carried out, although the probability of the magnetic industry is still based on the demand for procurement, but the purchase volume is expected to increase, which has some support to the alleviation of rare earth trend. For light rare earth, although PrNd is near to historical turning point, but if no emergency only by the market self-development, there is a long period of weak stability time. For heavy rare earth, Dy and Tb products in the current price temporarily "stop falling", but with the clearance of high bulk cargo inventory, the new Myanmar rare earth production gradually supplement, there is still a slow-down possibility, but do not rule out the possibility of favorable policy, or will affect the subsequent Dy and Ty trend. (Ruidao rare earth information)