Chinese Rare Earth Market - November 8, 2024

This week, Chinese rare earth market remained stable, with limited trading activity and low transaction volumes. Supply-side sellers held strong bullish sentiment, while downstream demand from end-users continued to show little improvement. According to China Tungsten Online, suppliers’ confidence in maintaining stable prices is supported by several factors:

Macroeconomic and Policy Influences: The conclusion of the U.S. election, the Federal Reserve's second interest rate cut (on November 8, the Federal Reserve lowered the federal funds rate target range by 25 basis points to between 4.5% and 4.75%), and positive domestic news have contributed to optimism among traders regarding the market outlook.

Supply Constraints and Demand from Key Industries: The suspension of rare earth mining in Myanmar and a slight increase in demand from some magnet material companies have reduced suppliers' willingness to offer price concessions. However, the market still faces a degree of oversupply, urging traders to proceed with caution.

Market Data:

According to customs data, in the first ten months of 2024, China’s total trade value reached 36.02 trillion yuan, a year-on-year increase of 5.2%. Exports rose 6.7% to 20.8 trillion yuan, while imports increased 3.2% to 15.22 trillion yuan, leading to a trade surplus of 5.58 trillion yuan, an expansion of 17.6%. China’s top three trade partners were ASEAN (5.67 trillion yuan, up 8.8%), the EU (4.64 trillion yuan, up 1.2%), and the U.S. (4.01 trillion yuan, up 4.4%). Trade with Belt and Road Initiative (BRI) countries totaled 16.94 trillion yuan, growing by 6.2%.

The rare earth market remains cautiously optimistic amid complex supply-demand dynamics, with stability influenced by both global economic factors and supply adjustments. Traders are advised to monitor any shifts in supply or policy that may impact future market conditions.

Prices of rare earth products on November 8, 2024

Picture of neodymium oxide

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