According to the monitoring of business society, the price index of domestic rare earth market rose sharply in July, the price of domestic praseodymium neodymium rare earth rose, the price of heavy rare earth market rose, and the domestic rare earth market soared. According to the rare earth sector index of business society, the bulk commodity price index BPI on July 31 was 1092 points, unchanged from yesterday, setting a record high in the cycle, It was 65.45% higher than the lowest point of 660 on February 3, 2016（ Note: the period refers to the period from December 1, 2011 to now).

It can be clearly seen from the rare earth index chart that the domestic rare earth prices rose sharply in July. Recently, the mainstream commodity prices in the rare earth market rose, and the rare earth market turned red. In terms of products:

It can be clearly seen from the product price trend chart that the prices of domestic mainstream products such as neodymium oxide, metal neodymium, praseodymium oxide, metal praseodymium, praseodymium neodymium oxide and praseodymium neodymium alloy have increased. As of July 30, the price of neodymium oxide in domestic rare earths was 620000 yuan / ton, up 30.12% from the price at the beginning of July; The price of neodymium was 745000 yuan / ton, up 27.9% from the price in early July; The price of praseodymium neodymium oxide was 630000 yuan / ton, up 31.52% from the price in early July; The price of praseodymium neodymium alloy was 770000 yuan / ton, up 31.56% from the price in early July; The price of praseodymium oxide was 640000 yuan / ton, with a price increase of 14.29% in July; The price of metal praseodymium was 815000 yuan / ton, up 17.27% in July, and the market trend of domestic light rare earth rose sharply.

The trend of domestic rare earth market soared, some enterprises reported that the overall transaction situation improved, the demand for high-end magnetic materials in the downstream was large, and the profit space of rare earth industry chain was opened. In the near future, China’s rare earth quota on the supply side may be steadily increased, the supply rigidity will be optimized, and the implementation of new energy efficiency standards will continue to increase the proportion of frequency conversion air conditioners in domestic household appliances, the penetration rate of Nd-Fe-B will continue to increase, and the demand side is expected to continue to rise. The sales of new energy vehicles are relatively normal, and the demand for rare earths is high. The main rare earth raw materials of high-performance Nd-Fe-B are light rare earth praseodymium and neodymium oxide, heavy rare earth dysprosium oxide and terbium oxide, which are used in new energy vehicles, wind power, energy-saving frequency conversion air conditioning, traditional vehicles and other fields. According to statistics, the sales of new energy vehicles are still good. According to the data released by China Automobile Industry Association, China Automobile Industry Association (hereinafter referred to as “China Automobile Association”) released the latest production and sales data. In June, the domestic automobile production and sales reached 1943000 and 2015000 respectively, down 4.8% and 5.3% month on month, down 16.5% and 12.4% year-on-year. Recently, the downstream demand is OK, and the market price trend of light rare earths has soared.

As can be seen from the trend chart, the price trend of dysprosium Series in China rose sharply. As of 31, the price of dysprosium oxide was 2.675 million yuan / ton, up 13.11% in July; The price of dysprosium ferroalloy was 2.64 million yuan / ton, an increase of 12.82% in July, and the price of dysprosium metal was 3.48 million yuan / ton, an increase of 7.91% in July; The price trend of domestic terbium series has risen sharply. The price of domestic terbium oxide is 8.4 million yuan / ton and the price of metal terbium is 10.35 million yuan / ton. Transactions in the domestic rare earth market have improved, leading magnetic material factories have continued to expand, and the demand for replenishment has made the domestic heavy rare earth market prices warmer and higher. In addition, Myanmar prohibits exports, and the global rare earth supply is relatively concentrated. Myanmar is one of the production areas second only to China and the United States. Myanmar has a great impact on the products in the domestic heavy rare earth market. The source of imported goods has been greatly reduced, and the supply in the heavy rare earth market is general. Recently, the downstream procurement is active, and the market price trend has increased sharply.

The recent notice on carrying out industrial energy conservation supervision in 2021 emphasizes the comprehensive sorting and investigation of enterprises in key industries such as iron and steel, nonferrous metal smelting, petrochemical industry and building materials, and the special supervision on the implementation of mandatory energy consumption quota standards per unit product, so as to finally realize the full coverage of energy conservation supervision of enterprises in key industries during the 14th Five Year Plan period. In addition, Wang Jiangping, Vice Minister of industry and information technology, said at the video conference on industrial policies and regulations of industry and information system last week that efforts should be made to optimize the development environment of industrial enterprises, accelerate the legislation of telecommunications law, and promote the promulgation of rare earth regulations as soon as possible. Industry insiders believe that this reflects the strengthening of government control over the rare earth industry, which is conducive to the healthy development of the industry. Since 2021, the accelerated promulgation of the regulations on the administration of rare earth will, on the one hand, make the industry have laws to abide by and promote the rare earth industry chain to embark on the road of virtuous circle development; On the other hand, it reflects China’s determination to strictly control the supply order of rare earth and support the price of rare earth as an important strategic resource. The overall demand for rare earth products is acceptable. Recently, the downstream demand has increased, the phenomenon of replenishment is frequent, and the price of domestic rare earth market has risen sharply.

In 2021, the total control index of the first batch of rare earth mining, smelting and separation increased significantly, which is related to the strong downstream demand. The Ministry of natural resources issued the total control index of rare earth mining in 2021. In 2021, the total control index of the first batch of rare earth mines (rare earth oxide REO, the same below) in China was 84000 tons, including 11490 tons of ionic (mainly medium and heavy rare earth) rare earth mines, The index of rock ore type (light) rare earth ore is 72510 tons. The total mining control index of the first batch of tungsten concentrate (tungsten trioxide content 65%, the same below) is 63000 tons, including 46890 tons of main mining index and 16110 tons of comprehensive utilization index. In 2021, the total mining amount of rare earth and tungsten mines will continue to be controlled. The national policy is favorable, and the trend of some products in the rare earth market is mainly rising.

With the sustainable development of new energy vehicles, wind power and variable frequency air conditioning in the downstream of rare earth, the demand is supported. However, the domestic rare earth supply starts normally. In addition, the on-site transactions in the later stage have improved, and the procurement of some enterprises has increased. Chen Ling, an analyst of business society, predicts that the market price of rare earth in the later stage and the market price of light rare earth in the short term may maintain a rising trend.