The Price of the Rare Earth Magnets Increased due to the Rise in Material Costs

Minmetals Rare Earth magnet Company announced on September 23 that it has been notified by China Minmetals Group that a strategic restructuring of the relevant rare earth assets has been under discussion among Aluminum Corporation of China, Combining “dual control of energy consumption” policy of the Chinese government has had a certain impact on the production capacity of some manufacturing companies.

China issued a number of domestic energy consumption policy documents, some high energy-consuming enterprises were required to stop work and production.In addition, the China Ministry of Ecology and Environment has issued the draft of"2021-2022 Autumn and Winter Action Plan for Air Pollution Management"in September. This autumn and winter(from October 1, 2021, to March 31, 2022) the production capacity in some industries may be further restricted. In Jiangsu, Zhejiang, Guangzhou...Factories shutdown due to power restrictions, work one/two days and have to stop four/five days, workers work overtime to catch up with goods.

Under the surge in domestic and international demands and implementation of national policies of the magnet, Since September, the rare earth magnet sector has fluctuated greatly, The mainstream transaction price of praseodymium and neodymium oxide rose to 880,000/ton this week, followed by the increase of praseodymium and neodymium metal. In the morning, the transaction price of praseodymium and neodymium metal in Zhejiang reached 900,000/ton. The lowest transaction price for some metal factories is tentatively set at 880,000/ton. Spot stocks of praseodymium and neodymium metal are scarce, and metal factories are less willing to ship. Some metal factories can only accept transactions under 10 tons.