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| Rare Earth |
Intensified domestic competition compresses profit margins for magnetic material producers
The rare earth market remains relatively stable in terms of pricing, according to data from SMM News as of June 10. However, beneath this surface stability lies an increasingly tense environment, driven by weak end-use demand, export restrictions, and intensifying domestic competition.
Key oxide prices remain firm, including:
- Pr-Nd oxide at ¥447,000–449,000/mt
- Dysprosium oxide at ¥1.64M–1.66M/mt
- Terbium oxide at ¥7.2M–7.25M/mt
- Gadolinium oxide, which declined slightly to ¥164,000–166,000/mt
- Holmium oxide at ¥515,000–520,000/mt
- Erbium oxide fluctuating around ¥300,000–305,000/mt
In the metal market, prices also held firm:
- Pr-Nd alloy at ¥548,000–550,000/mt
- Dysprosium-iron alloy at ¥1.59M–1.61M/mt
- Terbium metal at ¥8.9M–9M/mt
- Gadolinium-iron alloy at ¥160,000–162,000/mt
- Holmium-iron alloy at ¥524,000–528,000/mt
- Lanthanum-cerium alloy at ¥17,000–19,000/mt
Despite stable pricing, trading volume remains thin and the profit margins of magnetic material manufacturers are being squeezed. The Chinese government's continued tightening of rare earth export controls has forced many suppliers to divert material originally destined for export into the domestic market, where demand has not kept pace—particularly for high-priced metals.
This redirection is intensifying competition within China's domestic market, leading to an environment where buyers resist elevated prices, especially as downstream orders remain sluggish.
While metal prices are still being supported by oxide input costs, weak demand from sectors such as EVs, electronics, and wind turbines is creating a stalemate between upstream producers and downstream buyers. In such an environment, even slight shifts in sentiment or inventory levels could trigger short-term price volatility.
ScrapInsight Editorial Commentary
Rare earths may be holding price lines for now, but the real pressure is building in the fundamentals—lackluster demand, tighter trade controls, and bloated domestic inventories. If demand does not rebound, a near-term dip seems inevitable as suppliers become more aggressive in pricing to move stock.
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RAREMETAL
