Heavy Rare Earth Market Ushers Long-Awaited Spring

Domestic heavy rare earth market seems to usher the long-awaited "spring". Since the beginning of November 2019, when the market price of light rare earth has fallen, the price of heavy-rare earth has continued to rise, such as dysprosium oxide. From early November till now, the domestic market prices have risen sharply, with a monthly increase of 13.5%.

China's rare earth industry has experienced many years of development. At present, it has formed a relatively stable circle of the industry chain. At the same time as the price of heavy rare earth has continued to rise, the terminal sales of rare earth processing enterprises have also improved, which is expected to increase the profit margin of enterprises.

Some analysts believe that the recent increase in heavy rare earth prices is mainly affected by the supply and demand pattern in domestic and foreign markets. On the one hand, the sudden contraction of Myanmar imports would lead to a reduction in market supply. The Myanmar government may delay the customs clearance indefinitely, which will increase the demand gap in the international market. On the other hand, around the New Year's Day and the Spring Festival in 2020, under the support of the reduced expectations of the supply side, the market's inquiries will increase, and the demand side would increase significantly.

Relatively speaking, overseas markets have formed a certain amount of light rare earth production capacity, but heavy rare earth smelting capacity is scarce, and it is irreplaceable as additives in hi-tech fields. With the advent of the intelligent era, new energy vehicles, 5G smartphones, smart robots, and smart home appliances are constantly being promoted and popularized, the demand for medium-heavy rare earths will boost shortly. There is a long-awaited spring coming to the industry.

Heavy rare earth market ushers long-awaited spring. In the meantime, the United States, Japan, the European Union, South Korea, and other countries and regions have paid close attention to the reserve, supply, and development of heavy rare earths. They have formulated and issued relevant policies and plans, and adopted a series of measures to respond to China's heavy rare earth export control policies to guarantee the demand in the country. Although China is abundant in its reserves, it is still imperative to fully tap the strategic value of the rare resources.

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